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

Extend a payment term

No. SIC Year Notes
1 100 1987 St. Paul Farm Credit Bank, as an incentive to buyers of farmland, offered financing at rates as low as 4.9%.
2 3711 2007 As the home mortgage crisis begins to affect interest rates and spending, automakers are looking to clear out 2007 models before the 2008 models arrive. Honda Motor, which normally avoids incentives, is offering below-market financing on its minivans.
3 5731 1991 Circuit City offers 0% interest for 6 months when you purchase any Mitsubishi audio/video product using a Mitsubishi Three Diamond Card. If paid in full within 6 months of the date of purchase, no finance or insurance charges will apply during that time.
4 6141 2000 AmEx introduced the Blue card just before Y2K and priced it with zero percent interest to start, but less than 1% of the Blue smart card cardholders use its chip capabilities.
5 7941 2003 Recently, the Avila Golf and Country Club, which had lost several dozen members in the past two years, decided to lower the bar. It is now offering younger new members 0% financing of the entry fee until they hit age 40.

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