Reduce Price to Improve Revenues and Margins
CHOICE 1 OBJECTIVE: RETAIN CUSTOMERS
CHOICE 2 SEGMENTS: INDIVIDUAL CUSTOMER SEGMENT / A SPECIFIC CUSTOMER SEGMENT
CHOICE 3 COMPONENT: CHANGE THE LIST PRICE
| No. | SIC | Year | Notes |
| 1 | 2656 | 1988 | Fort Howard has countered some of the success of its dedicated cup competitors with its new aggressive pricing policy. After several years of share losses, Fort Howard either met competitive prices or, in some cases, discounted up to 3% to retain and even gain share in National Accounts. This policy has been successful in reversing the share loss. |
| 2 | 6211 | 2000 | Fidelity and Schwab have been showering their customers with favors especially cutting prices to hold on to existing customers rather than to expand the market. The price reductions are aimed specifically at frequent traders. |
| 3 | 6211 | 2004 | Charles Schwab Corporation reduced commissions in an effort to lure entry-level clients tempted by online firms. Charles Schwab & Co warned that lower commissions would trim revenue by 2% or 3% in the next year. Commissions were cut by more than 60% for its wealthiest clients. Customers with over $100,000 in stock or other assets will pay $19.95 for each trade, and customers with more than $1 million in their accounts will pay only $9.95, both commission fees down from $29.95. Still, Schwab's prices will be more expensive than their competitors. E-Trade charges $12.99 per trade for clients with accounts worth at least $50,000, and Ameritrade charges $10.99. However, Schwab says that it's not looking to be the least expensive, but win back customers with its combination of service, reputation, and cost. In the meantime, Schwab is compensating for any lost income by scaling back hiring. |
| 4 | 6211 | 2005 | Charles Schwab will cut trading fees, lowering commissions on many of its online-investor customers by 35%. The cuts will benefit about a million households with assets at Schwab between $50,000 and $1 million. Fees for these clients will drop to $12.95 from $19.95. Rivals such as Scottrade and Fidelity Investments have lowered fees in an effort to lure price-conscious traders. |
| 5 | 8221 | 1996 | Other schools, like Rice University, have limited tuition increases to the rate of inflation for continuing students. |
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