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 THE LIST PRICE
| No. | SIC | Year | Notes |
| 1 | 3334 | 1988 | ALCAN often initiated price cuts of fabricated prices in response to a reduction of ingot prices, taking share from their competitors. Furthering their success was ALCAN's strategy to continue production of ingot at competitive prices, while many others left this market. |
| 2 | 3571 | 1987 | Tandon, citing lower overhead and costs from offshore production, made reductions of as much as 25%. |
| 3 | 3571 | 1991 | IBM and Compaq expected to counter clone makers with "clone killer" pricing. Nimble clone makers engage in "forward" pricing, anticipating reductions in the cost of microprocessors. |
| 4 | 3571 | 2004 | The largest personal computer maker, Dell Inc. reported their third quarter profit jumped 25% as its U.S. business customers boosted spending on PCs. Dell's profits were buoyed by accelerating declines in component costs that helped increase customer demand. Dell's aggressive push to pass along lower component costs helped spur demand, especially in notebook PCs where shipments increased 35%. |
| 5 | 4512 | 2004 | Some carriers, including Continental Airlines, have cut their first-class fares. As a result, they are seeing an increase in sales of their priciest tickets. |
| 6 | 4724 | 2006 | Opaque systems, such as those operated by Priceline and Hotwire, benefit the suppliers by reaching out to the most price-conscious travelers without making bargains available to the general public. |
| 7 | 6331 | 1998 | State Farm had a decrease in its rates, averaging about 2%. Comes as insurers have cost benefits from a reduction in the number of accidents and the average cost of accidents. |
| 8 | 7376 | 2005 | Sun Microsystems has created an online trading system under which corporate users can bid for on-demand computing power in which computing power is sold much like electricity. The fees will begin at $1 an hour. The service is aimed at companies with large and fluctuating demand such as financial services and oil and gas providers. |
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