Reduce Price to Improve Revenues and Margins
CHOICE 1 OBJECTIVE: ATTRACT CUSTOMERS
CHOICE 2 SEGMENTS: PRODUCT COST SAVINGS SEGMENT / MANUFACTURING BUSINESS FUNCTIONAL COSTS / MAKE COST
CHOICE 3 COMPONENT: CHANGE CONVENIENCE AND PRICE TOGETHER
| No. | SIC | Year | Notes |
| 1 | 2731 | 2006 | Electronic textbooks may present an option for students struggling with rising textbook costs. Typically password protected online access costs about half of the price of a traditional book. |
| 2 | 4512 | 1987 | Texas Air Corp., the industry's new No. 1 carrier, slashed fares as much as 40% below "supersaver" prices on all routes, touching off new round of airlines fare wars. Tickets must be purchased at the time of reservation and Saturday stay is required. |
| 3 | 4512 | 1987 | Business travelers yesterday were able to buy a $198 round-trip ticket from SF to New York on United with only two days notice, rather than pay the normal unrestricted fare of $1,080 – a whopping $882 savings. |
| 4 | 4512 | 1987 | Continental and Eastern airlines cut their lowest fares by 40% on most domestic flights. However, they are now nonrefundable. |
| 5 | 4512 | 1991 | Southwest last month introduced a $20 fare between Oakland and Burbank w/ a 21-day advance purchase requirement. |
| 6 | 4512 | 1995 | Many airlines are establishing buy-now policies, where special discounts are only available when you buy tickets immediately (instead of reserving for 24 hours) or only available for brief windows of time (2-3 days). Delta is now establishing an "instant-purchase requirement" where travelers must buy a ticket immediately, or the price goes up. It's matching ValuJet. Northwest will soon require instant purchase in its lowest fares, too. ValuJet and Western Pacific Airlines use ticketless procedure only if you buy your ticket over the phone, on the spot. American Airlines just announced a new ticket sale that will last for a full eight days, instead of one or two. |
| 7 | 4522 | 2006 | Flight Options includes discounts on the hourly rate for long-haul flights and simpler fuel pricing. |
| 8 | 4813 | 2005 | Smaller companies including Tel3Mobile and American International Telephonics are entering the expanding market for international telephone service. These services allow wireless and landline calls at discounted rates but require that customers sign up online and use an 800 number to dial internationally. This requires more effort but can result in cheaper rates. |
| 9 | 7011 | 1992 | Marriott's pricing structure includes a 3 or 7-Day Advance Reservation rate with up to 25% savings. Has no penalty for cancellation. Changes may be made up to 3 or 7 days prior to arrival. Availability may be limited. |
| 10 | 7513 | 1991 | U-Haul has been outpricing and out marketing Ryder. Ryder just rolled out a campaign that cuts prices 40% for mid-week consumer truck rentals with a TV advertising campaign in time for the peak summer moving season. |
| 11 | 7514 | 1992 | Alamo announced sharply discounted uniform nationwide rates. Mid-size cars were reduced to $19 a day, and economy cars were cut to $15. The only hitches: 24-hour advance booking is required and the renter must keep the car over a Saturday night. |
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