Reduce Price to Improve Revenues and Margins
CHOICE 1 OBJECTIVE: REWARD CUSTOMERS
CHOICE 2 SEGMENTS: COMPANY REVENUE IMPROVEMENT SEGMENT / INCREASE THE COMPANY'S SHARE OF THEIR PURCHASE
CHOICE 3 COMPONENT: CHANGE THE LIST PRICE
No. | SIC | Year | Notes |
1 | 2834 | 1993 | Bristol-Myers will offer American Healthcare Systems significant discounts in return for a preferred status role (hospitals under American Healthcare Systems will be obligated to buy from Bristol-Myers). The relationship is under a 5-year contract. |
2 | 4512 | 2005 | A side effect of the air line fare cuts is many big corporate level contracts, which funneled a certain volume of business to preferred carriers in exchange for discounts of 8% to 12% may become obsolete. This may allow business travelers to shop around more with low cost carriers, though many companies are already tapping into those savings. |
3 | 5912 | 2006 | Pharmacy-benefit managers pioneered the practice of offering patients incentives to bypass drugstores and deal directly with their own in-house mail-order pharmacies. They typically did this by offering mail-order customers discounts. In some cases, employers agreed to "mandatory mail" programs that required patients to use the PBM's mail-order pharmacies for their long-term medication. |
4 | 7372 | 1986 | Lotus reports that it is testing a site-licensing program with Exxon that doesn't involve copying. Microsoft soon will announce a "corporate licensing" plan under which big customers get a discount for guaranteeing a certain volume of business. |
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