Reduce Price to Improve Revenues and Margins

CHOICE 3: USE COMPONENTS OF PRICE TO FURTHER LIMIT THE SPREAD OF THE LOWER PRICE

D. Change the Optional Components of Price

Provide a meet or release agreement

No.	SIC	Year	Notes
1	1411	2000	The opportunity to meet or release was one of the ways we were securing these long-term contracts in the hostile market where pricing was dropping. Generally, the customer needed some way to benefit if the market continued to drop.
2	3221	1993	Anchor matched discounts even if it meant sacrificing profits. In 1983, Owens-Illinois reduced prices by up to 15% to large customers to try to push Anchor out. Anchor met O-I's price even through it meant the company would suffer losses for the year.
3	4841	2006	As TiVo and DVR technology allow viewers to skip commercials, advertisers are increasingly concerned about whether their ads are actually being viewed. TV networks often offer minimum-audience guarantees for advertisers but as new Nielsen technology debuts that will rate commercial viewing, networks may follow the path of the Weather Channel and offer guarantees for advertising.
4	5731	1987	The Good Guys changed its price strategy in the last 5-6 weeks, bringing prices into the discount range rather than having customers haggle over price or wait to put goods on sale. It just instituted a 30-day lowest-price guarantee and return policy.
5	7001	2002	Six Continents tells its franchisees to match or undercut any rival rate that a customer finds on line. And, recently, began offering customers who find a better rate on other web sites a 10% discount off that rate if they book with Six Continents on line. Other competitors followed this move.