Reduce Price to Improve Revenues and Margins
CHOICE 1 OBJECTIVE: ATTRACT CUSTOMERS
CHOICE 2 ISOLATE SEGMENTS: LOSS LEADER SEGMENT
CHOICE 3 COMPONENT: CHANGE THE LIST PRICE
| No. | SIC | Year | Notes |
| 1 | 3571 | 2004 | This past September, Nintendo dented Xbox sales when it lowered the price of its GameCube console to $99. |
| 2 | 3571 | 2007 | Videogame console makers typically cut prices as the product matures. They often lose money with every system they sell, relying on videogame sales to make up. However, Microsoft has yet to turn a profit with its videogame business. |
| 3 | 3651 | 2004 | TiVo Inc. raised the stake in the digital video recorder market by offering free TiVos to Bay Area Comcast customers. The promotion requires a one-time $299 fee and $12.95 per month subscription. The device normally costs $200. |
| 4 | 3724 | 1993 | Pratt offered a 96% discount on its engine for new Boeing 777 aircraft. GE bettered Pratt's offer with concessions worth an extra $30 million. |
| 5 | 3944 | 1996 | Video game systems at new lower prices will probably cause their makers to lose money, but the companies hope to make up the difference on stronger sales of games. Nintendo announced last week that it would begin shipping its long-delayed Nintendo 64 play |
| 6 | 4813 | 2004 | Prepaid firms such as TracFone and Virgin Mobil USA sell their mobile phones retail at below cost. Unlike big wireless companies, TracFone doesn't charge activation fees to start a service. |
| 7 | 4841 | 2009 | Basic cable costs have climbed about 20% since 2003, to about $44.28 a month. But factor in Internet access, extra channels like HBO or regional sports, and a digital video recorder, and the average monthly bill is more like $98, up 63% since 2003. |
| 8 | 5311 | 1999 | Duckwall-Alco's pricing strategy is to slash prices permanently on selected high-volume products. This draws customers in consistently. This has allowed the company to save on advertising and allow it to operate efficiently. |
| 9 | 5331 | 2005 | Wal-Mart's three-year-old financial-services department cut rates on money wiring to attract the fast-growing immigrant segment, supporting family back home. |
| 10 | 5411 | 1985 | To compete against Cub Foods (warehouse PRL), Kroger started selling milk for 99 cents a gallon or 50 cents below cost. Bread prices were cut to 20 cents a loaf, and prices on dozens of other items fell below cost. |
| 11 | 5731 | 2009 | Discounts abound for digital cameras and digital music players as the recession slows sales. Online retailer Newegg is featuring a Centon Electronics music player for $17, down 43% from $40. |
| 12 | 5735 | 2002 | Big-box stores like Wal-Mart and Best Buy often offer deep discounts on new releases on their own, in large part to drive customers into the stores who may in turn stock up on other goods. |
| 13 | 5812 | 1991 | McDonald's lowered prices only on its cheapest menu item while maintaining the regular price of its more expensive items. The new low price of its most basic fare keeps price-sensitive buyers coming in. But most pay more for bigger items. |
| 14 | 5812 | 2009 | Quiznos sells a variety of sandwiches. In January, the company cut its prices on 37 of its menu items, taking 20 of its subs for under $5. Quiznos overall sales jumped by double-digits and traffic is up more than 30 percent this spring. |
| 15 | 5941 | 1992 | Sport superstores, like Nevada Bobs, which plans to double its six shops and open 20 more in France, Germany, and Sweden, slash the price of Titleist golf balls by 50%, to $22. |
| 16 | 5999 | 2004 | CompUSA will offer hundreds of dollars off their Gateway PCs and Toshiba laptops through early December. |
| 17 | 7372 | 1992 | Nintendo and Sega have cut prices on their advanced video-game systems for a second time in recent months. Both dropped prices about 20%. Sales are expected to increase only 5% this year. |
| 18 | 7832 | 1991 | AMC has been cutting ticket prices. Cineplex Odeon has started discounting tickets to attract more customers. |
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