Reduce Price to Improve Revenues and Margins
CHOICE 1 OBJECTIVE: ATTRACT CUSTOMERS
CHOICE 2 ISOLATE SEGMENTS: PRODUCT PURCHASED SEGMENT/PRODUCT SYSTEM COMPONENT SEGMENT
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CHOICE 3 COMPONENT: EXTEND A PAYMENT TERM
| No. | SIC | Year | Notes |
| 1 | 1521 | 2009 | Lennar has shown itself as one of the more creative marketers: Its specials have included no-money-down and a 3.625% mortgage rate — one of the industry's lowest for the loan's life, instead of a "teaser" for an introductory period before it resets higher. Such specials appear to have been effective. |
| 2 | 3669 | 2001 | Some of the telecom industry's growth was fueled by financing by equipment providers. The downturn in the industry also impacted these providers. As much as 30 to 40 percent of the $25.6 billion in outstanding loans may be at risk, showing immediately on vendors' financial results. Vendors loaned money to solidify relationships and ensure future orders from the telecom companies. |
| 3 | 3695 | 2005 | TiVo became popular at its debut, gaining 2.3 million subscribers. However, TiVo's main outlet has been DirecTV, which last month announced plans to begin using a competing DVR service. DirecTV is offering new customers a free DVR with a $5 monthly fee. Companies like Microsoft and HP are promoting a new computer that includes DVR functions without TiVo's $12.95 monthly fee. |
| 4 | 3711 | 1987 | Ford also announced new car financing of as low as 3.9 percent, a rebate of up to $600 or both, depending on the car. |
| 5 | 3711 | 1990 | Audi has short-term leases on all new Audis. The 3-year leases require no downpayments, compared w/ the 10-20% some luxury cars demand. And the monthly payments sharply undercut the competition. Also free routine maintenance on new Audis. |
| 6 | 3711 | 1991 | Toyota's Lexus just started the first-ever subsidized lease deals on its LS 400 in an attempt to stop a decline in sales of 20%. Consumers can now lease an LS 400 for less than $600 a month. Infiniti is offering a subsidized lease rate on its Q45 sedan of $736 a month. |
| 7 | 3711 | 1992 | Mercedes-Benz is offering a discount deal to lease a sedan for $630/mo. for 36 mos., a $120-a-month savings from the old monthly payment. Cadillac Seville also comes w/ a discount lease. |
| 8 | 3711 | 1993 | Ferrari sales down 50% in U.S. since 1988. So, Ferrari recently started its own finance company in the US. Ferrari Financial Services is already advertising a 0% finance program on some 1992 models. |
| 9 | 3711 | 1994 | Last year, the Japanese began aggressively pushing attractive leases on top-selling models, pushing monthly payments down to not much more than $200 in some cases. |
| 10 | 3711 | 2002 | There are hitches in many of these Zero Down schemes. In the GM deal only the best customers qualify. With the Ford program, customers have to pay their loans in 57 months rather than 60. In many of these deals, people typically end up with bigger monthly payment and more interest payment. |
| 11 | 3711 | 2003 | Only a small number of banks and credit unions are offering eight year loans, but many are offering seven year loans. Manufacturers are also getting into the market of loans for car payments. Isuzu Motors Ltd. Created a seven year loan, General Motors, Ford Motors, and DaimlerChrysler are sticking with six year loans, but with a 1.9% rate on many 2003 models. |
| 12 | 3711 | 2003 | Traditionally car loans are extended over three or four years. But they have been lengthening as buyers stretch to afford cars and SUVs that can cost as much as $30,000 to $40,000. Loans are now lengthening, a loan that lasts 96 months or 8 years. Longer loans have higher interest rates than shorter options, but lower monthly payments. |
| 13 | 3711 | 2004 | It is not uncommon to find lease deals on luxury brands. Now, though, some auto makers' financing arms are offering special leases on more of the mainstream vehicles. For example, General Motors Corp. has thrown some leasing support behind its 2004 Chevrolet Malibu, while Ford Motor Co. dealers are promoting special lease rates on certain 2004 F-150 pickup trucks. Meanwhile, American Honda Motor Co., a division of Honda Motor Corp, is currently promoting monthly payments of $239 and $299 on select Accord sedans and Odyssey Minivans. |
| 14 | 3714 | 2003 | AutoZone's pay on scan works this way: a manufacturer sends oil filter to AutoZone warehouses without collecting payment. The filters remain on the manufacturer's books even as they are moved onto store shelves. When a customer buys a filter at the checkot counter it becomes AutoZone's for a few seconds as it is being scanned and sold. Soon after the manufacturer is paid. |
| 15 | 3721 | 1992 | Boeing has a $90.2 bill backlog of orders. Has begun to offer its own customer financing, vying with archrival Airbus to offer ever-more-generous packages. Airbus is targeting longtime Boeing customers. |
| 16 | 5731 | 1991 | Circuit City offers 0% interest for 6 months when you purchase any Mitsubishi audio/video product using a Mitsubishi Three Diamond Card. If paid in full within 6 months of the date of purchase, no finance or insurance charges will apply during that time. If not so paid in full, you have to pay accrued charges for the 6 months. Required $500 minimum initial purchase of Mitsubishi products. |
| 17 | 6513 | 2005 | AvalonBay Communities, an apartment real-estate investment trust controlling 148 properties believes allowing credit cards is worth it even at a low usage rate because accepting cards gives their properties a competitive advantage. |
| 18 | 7941 | 2003 | Clubs are not attracting enough people and are trying to boost their membership. Some offer special memberships for commitment-phobes. Spring Meadows Country Club has a "Preview Membership" which lets people try out the club for a year. They still pay the monthly fee of $245, but not the initiation fee of $6,900 unless they later decide to join. |
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