Reduce Price to Improve Revenues and Margins
CHOICE 1 OBJECTIVE: ATTRACT CUSTOMERS
CHOICE 2 SEGMENTS: TARGETED COMPETITOR SEGMENT / PRICE LEADER OR NEXT LEADER PRICE AGAINST PRICE LEADER OR NEXT LEADER
CHOICE 3 COMPONENT: CHANGE THE LIST PRICE
| No. | SIC | Year | Notes |
| 1 | 3711 | 1990 | Toyota's 1991 Tercel is $100 cheaper than GM's new Saturn and as much as $1,600 less than other competing models. |
| 2 | 5211 | 1997 | Menard undercuts Home Depot on price. It may only be by a penny or two, but Menard is broadcasting the message that they won't be undersold. |
| 3 | 5331 | 1993 | When Walmart entered the Atlanta market where KMart (Pace) was already competing, Sam's led price cutting for as long as was necessary (profit margings dropped from 9% to 6%) to drive Pace out of business. |
| 4 | 5399 | 2002 | Buy.com started with plans to sell a few data storage devices over the Internet. It offered 18,000 items. The gimmick was to co-opt the "price engine" Web sites that users employed to find cheap goods. Buy.com made their stuff the cheapest by a nickel, so Buy.com popped up first. It later developed its own price crawler. The company lost money, but the point was to get attention. |
| 5 | 5411 | 1999 | Save-A-Lot is a smaller assortment grocery subsidiary of SuperValu (based in Minneapolis). The strategy is to have the prices constantly be lower than the super centers. A gallon of milk at Save-A-Lot is $1.99 vs. $2.19 at Wal-Mart. |
| 6 | 5651 | 2006 | Steve & Barry's University Sportswear lures shoppers with casual clothing priced $7.98 or less – a 40% discount to prices at Wal-Mart Stores Inc. and Target Corp. The chain cuts expenses further by deft navigation of import quotas and duties. That's why it buys more from factories in Africa and less from China than many rivals – most African countries face neither U.S. quota nor duties. |
| 7 | 5942 | 2002 | Amazon competitors have resumed discounting, too. Closely held Buy.com Inc. offers free shipping on most products with a minimum order size and promises to undercut Amazon book prices by 10%. |
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