Reduce Price to Improve Revenues and Margins
CHOICE 1 OBJECTIVE: ATTRACT CUSTOMERS
CHOICE 2 ISOLATE SEGMENTS: VOLUME PURCHASED SEGMENT
CHOICE 3 COMPONENT: CHANGE THE LIST PRICE
| No. | SIC | Year | Notes |
| 1 | 2037 | 1989 | There are three forms of prices in the industry: regular retail price, deal pricing and coupon pricing. Deal prices are those offered to customers during sales or discounts on the retail level. Traditionally the major competitors offer a significant amount of their product at deal prices. For example, in 1988 FCOJ had 45% of its sales at deal and RTS had 47%. Both of these figures are down from the previous year. Deal pricing did increase substantially beginning in 1983 when overcapacity set in. By 1989 deal pricing was particularly prevalent in the COJ market and within that market in the Not From Concentrate segment, which is the fastest growing segment in the industry. |
| 2 | 3571 | 1989 | IBM began selling PCs to Businessland and ComputerLand, the two largest chains, at 44% off list – four points better than other dealers get from IBM or Compaq. |
| 3 | 3716 | 1997 | If we have a dealer with an order of 15 or 20 of them versus a guy who orders 1 or 2, he may get a little bit better pricing, maybe 2% or 3% more. |
| 4 | 4481 | 1991 | The cruise industry's prices depend largely on which travel agent you call. Most cruise line operators give lower rates to travel agents and national discounters who can guarantee large #s of bookings. |
| 5 | 4513 | 1991 | So the large customers were getting maybe as much as 50% off the base price in say the last five or ten years? That would be the maximum, yes. The range was anywhere from 10% to 50%. |
| 6 | 4812 | 1989 | Last month, the San Jose Real Estate Board signed a contract w/ Cellular One to get a 20% discount on cellular calls for its members. By buying up to 50 cellular #s, the board qualifies as a "reseller" of cellular service. |
| 7 | 4813 | 2000 | Prior to AT&T's 7 cents a minute plan consumers faced a bewildering set of pricing options for long distance phone service. AT&T charged 15 cents per minute per call with no monthly fee; or 10 cents a minute with a $4.95 monthly fee. |
| 8 | 5411 | 2008 | Kroger Co., the nation's largest traditional grocer chain was one of the first retailers to announce plans to give shoppers a bonus—10% in its case—if they exchanged tax-stimulus checks for store gift cards for matching amounts. The bonus is open to everyone, even if they haven't received a rebate yet and even if they don't qualify for one. |
| 9 | 5912 | 2002 | Walgreens is initiating a new prescription program that would credit a cardholder with a dollar amount equal to 10% of the retail price of the prescription bought. The program targets pharmacy customers aged 55 and up who don't have an insurance prescription card and don't participate in a government assistance program. |
| 10 | 6021 | 2004 | Many clients are attracted to the Bryn Mawr bank because of its modest fees: with a sliding scale that starts at 1% for trust management and declines as the portfolio size rises. |
| 11 | 6211 | 2001 | Cybertrader, which used to be known as CyberCorp and was aquired by Schwab last year, will charge users of its CyberX2 platform $9.95 a trade for customers who make at least 100 trades a month, lowering the limit for that pricing from 500 trades a month. |
| 12 | 6282 | 1997 | An employee with $30,000 in his 401(k) could be paying more than $300 a year at a large employer, or more than $700 a year at a small employer. Some 401(k) "vendors" charge fees totaling more than 2.5% of a plan's assets. |
| 13 | 7372 | 1998 | Microsoft offers volume discounts to PC makers that help it hit its goals. |
| 14 | 7514 | 1988 | Avis in price war w/ Hertz. Corporate contracts are 70% of rentals. Weak demand from vacationers leaves industry open to price-cutting. Avis received big accounts through rate cuts of 25% – 30%. |
| 15 | 7514 | 2005 | Seeking to appeal to summer road trippers, Avis is offering $75 off a long-term rental of a convertible or roadster in the New York and Tri-State area. |
| 16 | 7832 | 1997 | A movie theater chain issues a card valid for one month. The customer pays most for the first visit during the month … less for the second … still less for the third. Chain's profits up 40%. |
<< Return to Choice 3