Reduce Price to Improve Revenues and Margins
CHOICE 1 OBJECTIVE: ATTRACT CUSTOMERS
CHOICE 2 SEGMENTS: VOLUME PURCHASED SEGMENT / PACKAGE OF SAME PRODUCT
CHOICE 3 COMPONENT: STATED TIME – THIS BASIS CHARGES THE BUYER BY UNIT OF TIME
| No. | SIC | Year | Notes |
| 1 | 2721 | 1989 | To keep circulation up, Time has been pushing short-term subscriptions. The reason has to do with direct-mail marketing, where low price is more important than value. 22-week subscription at $17.39 easier sell than a full year subscription. |
| 2 | 3571 | 2005 | Hewlett-Packard and Sun Microsystems are looking to challenge IBM's successful computer utility program, On-Demand with new programs which treat computer power as a utility. These services help customers with fluctuating workloads, such as banking, computer animation and life sciences. Sun allows customers, big and small, to order up computing resources through a website, with a credit card. They would then download the computed material. HP's program requires the purchase of a week's worth of computer processing time. The provider benefits from an ongoing source of revenue and the potential for further service sales. |
| 3 | 4522 | 2006 | Jet cards allow fliers to use private jets without incurring the costs of fractional or complete ownership. Jet cards often offer 25 hours of flying time and minimize the fees associated with fractional ownership. Federal taxes and jet-fuel charges are not always included. |
| 4 | 4899 | 2002 | United is selling two broadband packages, one includes unlimited dial-up service for $44.90 a month and the other is with 10 free hours of dial-up service for $39.95 a month. |
<< Return to Choice 3