Reduce Price to Improve Revenues and Margins
CHOICE 1 OBJECTIVE: REWARD CUSTOMERS
CHOICE 2 ISOLATE SEGMENTS: COMPANY REVENUE IMPROVEMENT SEGMENT
CHOICE 3 COMPONENT: PROVIDE A FREE OR HEAVILY DISCOUNTED PRODUCT FROM A THIRD PARTY
| No. | SIC | Year | Notes |
| 1 | 2721 | 1998 | American Family Enterprises and Publishers Clearing House make money by selling magazines to sweepstakes entrants. For each subscription they sell – normally at the lowest price available to the general public – the companies generally keep between 75% and 90% of the price with the remainder going to the magazines. The magazines themselves profit primarily from renewals. |
| 2 | 5600 | 2006 | L.L. Bean has discontinued its 2005 offer of free shipping. It is now restricted to customers using the L.L. Bean Visa Card. |
| 3 | 6021 | 2004 | National City is giving away vouchers for a free companion airline ticket with the purchase of one ticket at the standard fare. |
| 4 | 6141 | 2002 | American Express is offering to holders of new cards two Membership Rewards points for every dollar they spend at most grocery stores, drugstores, gas stations and other retail establishments. Holders of platinum and black cards get the perk too. |
| 5 | 6141 | 2002 | American Express is offering to holders of new cards to earn two Membership Rewards points for every dollar they spend at most grocery stores, drugstores, gas stations and other retail establishments. Holders of platinum and black cards get the perk too. |
| 6 | 6211 | 2000 | DirectAdvice.com has made a deal with E*Trade to offer its services to customers of the brokerage firm. The service, which normally costs $75 when accessed directly over the Internet, will be free to some wealthier E*Trade customers. |
| 7 | 6531 | 2005 | LendingTree.com and RealEstate.com lure in sellers by negotiating directly with realtors. They find agents for buyers and sellers, who agree to give the company about 30% of the commission in exchange for the client. The company then offers a portion of that back to clients in the form of a rebate or gift card. However, clients must use an agent recommended by a participating brokerage firm. In response, some traditional real estate firms have begun to offer similar services. |
| 8 | 7375 | 2000 | Excite, Lycos and Alta Vista teamed up with FirstUp.com, a free Internet service provider in San Francisco. Yahoo partnered with K-Mart's bluelight.com which in turn gets it's Internet service from SpinWay.com. All of the partnerships involve sharing revenue from ads in e-commerce. |
| 9 | 7375 | 2004 | With trading volume down and competition up, online brokers are devising new ways to attract investors. Fidelity is teaming up with eBay to give special rewards to eBay customers who open accounts. |
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