Reduce Price to Improve Revenues and Margins

CHOICE 2: ISOLATE SEGMENTS RECEIVING THE LOW PRICE

B. Margin Building Segments

Company Revenue Improvement Segment

No.	SIC	Year	Notes
1	2834	1990	Merck agreed to extend its maximum discount to Medicaid if Medicaid puts every one of its patented drugs on the formulary. Use discounts to sell other products.
2	3652	2004	Since the introduction of JumpStart, Universal competitors have roughly doubled the size of their discounting programs, including co-op and product-placement payments.
3	4931	2000	Essential.com offers to sell utilities at lower rates than can be generally found elsewhere by aggregating customers. New England Electric System sells electricity through Essential at 10% below competitors' prices.
4	5600	2006	L.L. Bean has discontinued its 2005 offer of free shipping. It is now restricted to customers using the L.L. Bean Visa Card.
5	6141	2009	Some credit cards give more points or a higher percentage of cash back for certain types of purchases, like gas or groceries. Others offer incentives for buying certain products at specific times of the year, like home improvement shopping in the spring.