Reduce Price to Improve Revenues and Margins

CHOICE 1 OBJECTIVE: ATTRACT CUSTOMERS

CHOICE 2 ISOLATE SEGMENTS: PRODUCT PURCHASED SEGMENT/PRODUCT SYSTEM COMPONENT SEGMENT

CHOICE 3 COMPONENT: PROVIDE A FREE, OR HEAVILY DISCOUNTED, PRODUCT FROM THE COMPANY, OTHER THAN THE PRODUCT ON SALE

No.	SIC	Year	Notes
1	1521	2006	As the housing market cools and interest and mortgage rates rise, contractors have found themselves with free time for the first time in years. As a result, they have been offering discounts and added services to increase sales. Services which once were available only for a fee, such as schematic drawings and detailed estimates, are now available for free. Contractors are also offering more personal service and reducing their commissions on supplies and fixtures.
2	2086	1991	Coke and Pepsi subsidize the costs of customers' soda marketing and equipment, detrimental to small rivals.
3	2721	1992	Include free "value-added" services to appeal to bargain shoppers, without lowering price. Ex: a magazine's offering advertisers free merchandising tie-ins when they buy ad space at rate-card prices.
4	2731	1987	PacBell offers to write and design a new or additional ad free of charge.
5	3571	1989	For individuals, Apple said it will offer rebates of up to half the price of peripherals like laser printers & external disk drives when purchased w/ certain computers.
6	3571	1991	Compaq cut computer prices by up to 34% and prices of key options, like extra memory and communications attachments, by up to 68%.
7	3571	1995	Cabletron is offering free network consulting to 3Com and Chipcom customers.
8	3577	1988	Kodak offers a 9 month free service contract.
9	3577	1989	Fujitsu is offering a sale on its printers (gives away a free cartridge).
10	3715	2003	Volvo has increased penetration of its Volvo engines in Volvo-brand trucks from 10% to about half, the rest being sold with Cummins engines. Customers get up to $1,500 off the cost of a Volvo truck-which range in price from $70,000 to $120,000-if they pick a Volvo engine.
11	4812	1997	Cellular One has just begun promoting a limited-time offer of digital cellular service for $19.99 a month, 20% off its normal rate. The deal includes free activation and 500 free weekend minutes a month within the local calling area. The deal requires a month within the local calling area. The deal requires a one-year contract, and promotional rates are only good through Dec. 31.
12	4812	1998	Omnipoint Corp. recently launched a "no monthly fee" prepaid cellular phone service.
13	4813	1991	Pacific Bell offers a Custom 800 number connection for free. Monthly and usage charges apply.
14	5942	2002	Early this year, Amazon waived delivery charges on orders $99 and above. Later, the company dropped the minimum order size to $49, then to $25–about the price of two hardback books or CDs.
15	6021	1997	Commerce Bancshares Inc. offers free checking to try to lure customers from NationsBank, a fee-assessor that moved into the area.
16	6021	2003	Bank of America ended its charges for customers to pay bills online last May when it found out it could get more of their business if it offered the service for free.
17	6162	1994	Lenders are offering rates in 7% range, slashing points, reducing fees. Others are reducing closing costs.
18	7372	1994	IBM plans to introduce a tailored, pay-for-use pricing system today on some of its mainframe software that could cut costs for customers by up to 30%. The pricing system is designed to encourage customers to migrate to the new technologies as quickly as possible, since price cuts are on software for new machines. New software pricing is tailored per application used on the operating system.
19	7372	2005	Microsoft Corp. said it will begin offering free software for combating "spyware" and viruses, responding to concerns about security flaws in its products but sending jitters through other makers of antivirus software. Last year, Microsoft acquired Giant Company Software Inc., a small NY maker of the antispyware product. These moves rattle traditional sellers of security software, like Symantec and McAfee.
20	7991	2009	Health clubs are another area where people have added services. On average, membership costs have fallen- to about $402 a year in 2007 from $422 in 2003. But overall health-club revenue was up, largely because members were buying more services, including personal training, massages and nutrition counseling.

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