Reduce Price to Improve Revenues and Margins
CHOICE 1 OBJECTIVE: ATTRACT CUSTOMERS
CHOICE 2 SEGMENTS: VOLUME PURCHASED SEGMENT / VOLUME DISCOUNT OF PERCENTAGE OF VALUE OF PURCHASES OVER TIME
CHOICE 3 COMPONENT: PROVIDE A REBATE
| No. | SIC | Year | Notes |
| 1 | 2834 | 2001 | To warrant a place on Florida's list of prescription drugs that can be prescribed for Medicaid patients without a hassle, drug makers promised rebates that equaled price cuts of at least 6%. Some companies were hurt by the legislation, failing to get a large number of the drugs approved. |
| 2 | 3011 | 1991 | It’s pretty much always been traditional where the bigger guy who buys more tires gets a bigger discount at the end of the year after his truckload discounts and rebate program and all. Even the volume rebate program is set up where some of the smaller dealers take part in that, but their volume rebate may be 1 ½ or 2% on their annual purchases, and the big guy might get 6% on a lot more volume, so when it comes to dollars, it’s a lot more dollars. It’s a pricing program that’s set up that everybody’s entitled to the same thing theoretically. If everybody bought the same amount of tires, they would all get the same price. They are earned discounts. |
| 3 | 3900 | 2002 | In the pricing system, the discount changes with the product category while the rebate changes with the size of the customer's annual purchases. Discounts go from 0 to 8% depending on the product profitability category and rebates can range up to 13% on any level products over and above the 8% discount. The rebates also vary according to the product category. The A level catetgory starts at 2% and goes to 13% in rebates. B levels start at zero and go to ll.75%. C start at zero and go to ll.25%. There are no rebates on D and E level products. In total program, an average customer's discount and rebate combined starts about 6% and goes up to about 16%. The 16% is reached at about $500,000 in annual purchases. |
| 4 | 4512 | 2003 | American Airlines and American Express are teaming up to offer a credit card that will give cash rebates on travel of as much as 10%. This is aimed at midsized companies, those with revenues of $10 million to $1 billion. American Airlines hopes to bolster business travel through this program. |
| 5 | 5411 | 2008 | Kroger Co., the nation's largest traditional grocer chain was one of the first retailers to announce plans to give shoppers a bonus—10% in its case—if they exchanged tax-stimulus checks for store gift cards for matching amounts. The bonus is open to everyone, even if they haven't received a rebate yet and even if they don't qualify for one. |
| 6 | 5912 | 2002 | Walgreens is initiating a new prescription program that would credit a cardholder with a dollar amount equal to 10% of the retail price of the prescription bought. The program targets pharmacy customers aged 55 and up who don't have an insurance prescription card and don't participate in a government assistance program. |
| 7 | 6141 | 2004 | The latest card offering from American Express and Costco joins a long list of cash-back cards, which have flooded the market in recent years. Some are straightforward, offering 1% back on everything that customers spend. Others hold out the promise of a bit more back to people who spend large amounts and carry a balance. The cards appeal to people who don't spend enough to earn big piles of frequent-flier miles through airline credit cards, or those who have sworn off miles after having trouble booking flights. |
<< Return to Choice 3