Reduce Price to Improve Revenues and Margins

CHOICE 1 OBJECTIVE: ATTRACT CUSTOMERS

CHOICE 2 SEGMENTS: INDIVIDUAL CUSTOMER SEGMENT / A LEADING CUSTOMER IN THE CUSTOMER'S INDUSTRY

CHOICE 3 COMPONENT: CHANGE THE LIST PRICE

No. SIC Year Notes
1 2834 1991 Government and private health groups have negotiated discounts of 25-60%+ off usual wholesale prices.
2 3523 1993 The industry's largest customer receives up to 6% discounts.
3 3572 1992 Conner gives its largest customer, Compaq, the lowest prices. Conner recognizes the need to generate long term business with a Very Large customer.
4 6552 2008 With the condo glut growing as new towers are finished, and buyers walk away from presale contracts, developers increasingly are resorting to auctions to unload units at steep discounts. Unlike ubiquitous foreclosed home auctions, these events seek to establish market prices for untainted, even upscale properties. In a test of the strategy, 39 luxury coastal condominiums went under the hammer late August at about half their previous asking prices. Thirty three of the 39 condos sold on auction day, including a three-bedroom, 1,651-square-foot unit that went for $995,000, well above the minimum bid, but well below the original list price of 1.5 million.
5 7514 1989 Rental rates for corporate customers negotiating new contracts are about the same as a year ago. The biggest customers are getting the lowest rates.

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