Reduce Price to Improve Revenues and Margins
CHOICE 1 OBJECTIVE: REWARD CUSTOMERS
CHOICE 2 ISOLATE SEGMENTS: CUSTOMER COST SAVING SEGMENT
CHOICE 3 COMPONENT: PROVIDE A REBATE
| No. | SIC | Year | Notes |
| 1 | 3571 | 1999 | The internet rebates offered by Dell are only through it's own internet service. |
| 2 | 4512 | 2003 | Last year, hoteliers began waging their own battle against online travel agencies, guaranteeing the lowest rate on rooms booked directly through their own corporate Web sites. Customers finding a lower rate within 24 hours of booking are often offered a 10%-to-20% discount on the lower rate. After beginning this option in May 2002, InterContinental Hotels Group says it increased bookings through its Web site by 80% within a year. Other hoteliers launching similar programs include Wyndham International, Hyatt Hotels and, most recently, Hilton Hotels. |
| 3 | 4700 | 1987 | Taking a marketing cue from successful discount stockbrokers, new discount travel agents offer up to 10% rebates on the price of an airline ticket to customers who want nothing more than a ticket and a reservation. |
| 4 | 4911 | 2006 | Despite the risk of declining profits, energy companies are introducing conservation programs to improve their images. Pacific Gas and Electric, which has boosted prices by 43% for natural gas in the last year, is offering customers who cut their consumption by 10% a 20% rebate. About two-thirds of customers are eligible for the deal. |
| 5 | 6300 | 2005 | In the middle market, most insurance companies use a profit sharing formula that gives the agent a contingency payment running 2 to 3%, depending on the profit, on the book of business. If the agent is in the Elite category, it can get another 1 to 2% in profit sharing. Elites have more than $10 million in purchases from the company. Franchise Elite can have purchases of $40 to $65 million annually. |
| 6 | 6311 | 2006 | Both term and whole-life insurance policies present a problem for certain customers, term offers no return on investment while whole-life coverage is often prohibitively expensive. Return-of-premium term insurance allows the subscriber to collect his or her premiums after 30 years. At the moment, this income is not taxable. If the subscriber dies during that period his beneficiary gets $1 million but no return of premiums. This allows subscribers to bet on their own health while protecting their family. |
| 7 | 6321 | 2006 | A South African insurance company is encouraging subscribers to adopt a healthy lifestyle by offering rewards for healthy habits, such as quitting smoking, exercising and getting regular checkups. This plan is a high-deductible plan in which people are responsible for the large part of their basic care. |
| 8 | 6331 | 1991 | Johnson & Higgins offers a property policy that sets premiums for 10 years and puts a portion of the cost in a "premium reserve," which the insured keeps if claims don't surpass a set level. At worst, the insured forfeits the reserve. At best, it has stable premiums (despite any disaster) and it shares profits. |
| 9 | 6531 | 2006 | Buyside Realty and Seattle's Redfin offer an alternative to traditional real estate agents. Buyers research, find and visit homes on their own, turning to the limited-service broker to complete the paperwork and negotiate the price. Because they do not offer a full-service shop, buyers receive a 75% rebate on the commission, a significant discount. |
| 10 | 7011 | 2005 | Marriott International Inc. is proud of the push last year for a "best rate guarantee," offering customers a 25% discount if they find a better rate on the Internet than they were given in the Marriott directory. |
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