Reduce Price to Improve Revenues and Margins
CHOICE 1 OBJECTIVE: ATTRACT CUSTOMERS
CHOICE 2 ISOLATE SEGMENTS: INTRODUCTORY OFFER SEGMENT
CHOICE 3 COMPONENT: EXTEND A PAYMENT TERM
| No. | SIC | Year | Notes |
| 1 | 3600 | 2009 | Vaillant executives thought about reducing prices but didn’t want to set a precedent or cheapen the company's image. So the company, a subsidiary or German solar-energy provider Vaillant Group, launched a program where it installs the system, which can cost as much as $7000, for no upfront cost. Homeowners pay for part of the installation through tax credits; the company says homeowners can have Vaillant cover that cost initially and reimburse the firm at tax time, or they can wrap the amount of the credits into monthly payments. Then, the remaining balance is paid back from the savings customers realize on their energy bills. Households that currently use propane or natural gas to heat water might save as much as $500 a year on an energy bill with the Vaillant system. |
| 2 | 6141 | 2000 | AmEx introduced the Blue card just before Y2K and priced it with zero percent interest to start, but less than 1% of the Blue smart card cardholders use its chip capabilities. |
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