Reduce Price to Improve Revenues and Margins
CHOICE 1 OBJECTIVE: ATTRACT CUSTOMERS
CHOICE 2 SEGMENTS: PRODUCT COST SAVINGS SEGMENT / MANUFACTURING BUSINESS FUNCTIONAL COSTS / MULTIPLE FUNCTIONS
CHOICE 3 COMPONENT: CHANGE RELIABILITY AND PRICE TOGETHER
| No. | SIC | Year | Notes |
| 1 | 1531 | 1997 | Centex will ship in Cavco homes built in a factory, and then install them on permanent foundations on the lots. The result: a 15% to 20% cost saving for buyers. |
| 2 | 2000 | 2006 | National brands face increasing competition as stores boost sales with their own labels. In almost any category, of the top-three major selling brands, one of them is going to be a private label. Supermarkets are also part of the trend. The biggest players in the industry carry the largest selection of private labels. At Kroger, for example, about 25% of sales comes from private label products. It's 10% to 20% cheaper for the consumer, and the retailer makes a better margin. |
| 3 | 2037 | 1989 | There are several large private label companies. Minute Maid also does business in the food service sector as does Tropicana. Citrus Hill does not. This is an example of standard leaders covering multiple price points. |
| 4 | 2893 | 2005 | While consumers can take advantage of a fierce price war when buying a new printer, they often experience sticker shock when it comes time to buy ink cartridges. The price of ink per milliliter from big printer companies has been increasing steadily. The size of cartridges is also decreasing. In response to demand, alternatives have arisen in the form of off-brand cartridges or refilling equipment which cost 20% to 50% less than new branded cartridges. |
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