Reduce Price to Improve Revenues and Margins

CHOICE 1 OBJECTIVE: ATTRACT CUSTOMERS

CHOICE 2 SEGMENTS: VOLUME PURCHASED SEGMENT / PACKAGE OF SAME PRODUCT

CHOICE 3 COMPONENT: CREATE A PACKAGE OF AN ITEM AND SELL BY THE PACKAGE

No.	SIC	Year	Notes
1	2000	2008	Nestle, has instigated "nuclear" pricing actions to the detriment of profitability in the category. This refers to Nestle's 10 frozen meals for $10 promotions.
2	2111	1992	Philip Morris is trying to increase sales by offering five-pack cartons of Marlboros, an industry first.
3	2676	1994	Procter & Gamble had a strict pricing formula. The standard package size sold for 100, two times the standard 95, three times 92, four times 90.
4	3861	1998	By cutting prices as much as 50% on multiple-roll film packs, selling 4 rolls for $4.99 at K-Mart, Fuji surprised Kodak's CEO and helped stall the turnaround the CEO launched in 1993.
5	4512	2006	In order to generate consistent revenue and foster loyalty, many North American airlines are considering prepaid pass programs. Cape Air has been running a program for years, selling ticket books of 10 one-way flights at discounted routes on its flights around Cape Cod and around the Caribbean and Florida Keys. These passes now account for one-third of Cape Air's ticket sales.
6	4512	2006	Airlines faced similar price competition several years ago, when Web sites began buying bulk seats and rooms and sold them at discounts. Eventually, companies made their own prices more competitive, even as they gave the new Web sites incentives to cooperate and punished the sites if they undercut prices by limiting access to inventory.
7	4512	2007	Air Canada fosters loyalty with its pass products which allow customers to purchase bulk tickets at a discount on selected routes and regions. 90% of customers who buy one end up buying another.
8	4800	2003	SBC ran a special offer which lowered the monthly rate on a 12-month package of high-speed Internet access to $24.95 from $29.95. This is cheaper than competitors' offers of $39.95 from Covad, $42.95 from Comcast and AT&T's price after a three-month introductory price of $19.95.
9	4812	2002	T-Mobile hopes to grab market share with the industry's lowest prices. However, it is losing money rapidly even as it gains customers. Some rivals are fighting back with low prices, AT&T now offers a rate plan with 1,000 anytime minutes for $40 monthly. Top carrier Verizon refuses to cut prices, relying on its quality instead.
10	4812	2002	Subscribers in family plans share a bucket of minutes but have separate cell phone numbers. Most family plans have two people, but they can include four or five.
11	4812	2003	Sprint PCS is offering customers 1,000 anytime minutes for $40 to $45 a month, outdoing most rivals. However, unlike T-Mobile's plan, it is restricted to regional and local calling areas. This offer could signal a new round of price wars.
12	4812	2004	Customers can slash their phone bills by signing up for a calling plan. SBC, for instance, offers rates of as low as 2 cents a minute if customers agree to purchase 500 minutes of calls every month. By contrast, its basic rate is as high as 27 cents per minute. For long-distance, some customers swear by 10-10 numbers.
13	4813	1998	New calling plan, Value Promise Plus Simplicity, has companies buy a block of monthly calling time, then make all Pac Bell calls in that time for just 5 cents a minute.
14	4899	2005	Just a few months after dropping prices to $14.95, SBC raised prices to $16.99. However, they are dropping prices for a faster broadband service from $24.99 to $21.99. Despite the required six-month contract, customers are still paying less.
15	5331	2008	Despite slowing economic growth, soaring commodities prices this year have forced manufacturers around the world to hike the prices they charge retailers, which in turn have raised their prices on consumers. Costco is working to preserve its deals. Coffee maker Starbucks recently agreed to sell five $20 gift cards for $79.99 at Costco, a deal it doesn't offer customers in its own cafes.
16	5812	2009	Restaurant chains are offering more aggressive promotional deals as they try to tempt diners in lean times. Domino's Pizza is running ads about its "big taste bailout package" in which people can order any three medium, one-topping pizzas or any three oven baked sandwiches for $5 each.
17	5900	2006	TheTieBar.com offers a tie-of-the-month option for customers. For $199 a year, customers receive one silk tie, designed by the company and manufactured in China, each month. This allows retailers to ensure a stable revenue stream and better control inventory. They take advantage of a more efficient business model.
18	7841	2006	As part of an effort to boost subscriptions, reduce cancellations and increase profitability, Netflix introduced a $5.99 plan that would allow customers to rent three movies a month. More expensive plans allow unlimited movies or multiple movies at a time.
19	7999	1998	With the Alpine 10-PAK coupons, you can ski or snowboard for $36 per day. Books purchased after October 31 are $400 ($40 per day). Leftover coupons can be applied the next season.
20	8000	1987	Dentists working for group practice Consumer Dental Offices agree to charge about 40% less than typical rates for their services in return for more patients.

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