Reduce Price to Improve Revenues and Margins

CHOICE 1 OBJECTIVE: ATTRACT CUSTOMERS

CHOICE 2 SEGMENTS: PRODUCT SYSTEM COMPONENT SEGMENT / OPTIONAL COMPONENTS

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	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.
6	3711	1992	Fiat now offers $1600 rebates and zero-interest financing in Italy on its $10,000 Uno compact.
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	At the same time car makers are offering Zero Percent Financing and No Down Payment deals, they are raising their prices on popular models.
11	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.
12	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.
13	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.
14	3711	2004	In response to a steep decline in U.S. sales, luxury brands such as BMW, Mercedes-Benz and Jaguar are jumping into the U.S. price wars with deep discounts. Luxury dealers dislike this practice as it undercuts the brand's reputation. BMW, which prides itself on being above the fray, is offering $4,500 in dealer incentives on its Z-4 Roadster. 1.9% financing is also available.
15	3711	2004	As more models and entry-level luxury cars and SUVs are crowding the market, competition is forcing many auto makers to cut prices. DaimlerChyrysler's Mercedes-Benz, Ford Motor Co.'s Jaguar and Toyota's Lexus are offering lower lease rates and discounted financing. BMW is also promoting lease discounts on many models. Leasing offers are spurred by a rebound of residual values, the worth of a vehicle in three years.
16	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.
17	3711	2004	Just last month, Toyota Motor Corp. offered special regional lease deals on many of its 2004 Camry and Corolla models. In January, Toyota Financial Services, Toyota's financing arm based in Torrance Ca., offered more lease promotions than it had in the past 12 months.
18	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 checkout counter it becomes AutoZone's for a few seconds as it is being scanned and sold. Soon after the manufacturer is paid.
19	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.
20	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.

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