Reduce Price to Improve Revenues and Margins
CHOICE 1 OBJECTIVE: ATTRACT CUSTOMERS
CHOICE 2 SEGMENTS: PRODUCT COST SAVINGS SEGMENT / DISTRIBUTION BUSINESS FUNCTIONAL COSTS / SERVE COST
CHOICE 3 COMPONENT: CHANGE THE BENEFIT PACKAGE
| No. | SIC | Year | Notes |
| 1 | 6141 | 2001 | AmeriCredit Corp. uses specially tailored data to create their 12 different models for pricing and underwriting, which sets loans at rates between 10% & 25%. |
| 2 | 7514 | 2005 | In response to soaring gasoline prices and the onset of the summer travel season, rental car companies are luring customers in with bargains. Budget Rent-A-Car is offering one-way rentals from Arizona to California at only $9.99 a day for an economy car. Hertz offers a similar deal from three Arizona and Nevada locations to California. |
| 3 | 8011 | 2003 | Frustrated by red tape, some maverick doctors have cut out the middlemen, insurance companies, allowing them to offer less-expensive service and a return to the days when nothing came between patients and their family doctors. Patmos clinic, which stands for “payment at the time of service,” doesn't accept any third-party payment. By accepting only cash, checks, and credit cards, it keeps its administrative costs to a minimum and passes the savings on to the patients. It posts the prices on its Web site and on a huge turquoise and orange sign in front of the clinic. A typical office visit costs $35, a set of blood tests is $20, and a pregnancy test is $10. Other doctors in town typically charge $55 or more for an office visit and send patients to an outside lab where blood work can start at $100. |
<< Return to Choice 3