Word: price-cutting
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...comes down to product," says Dieter Zetsche, Chrysler Group's CEO. "You can't cost-cut your way to prosperity." Nor can you price-cut forever, which has been the strategy the Big Three have relied on to keep the metal moving. Consumers have always been willing to pay more for cool design and a hot car. This year, at least, Detroit will give them that opportunity. --With reporting by Joseph R. Szczesny/Detroit and Dody Tsiantar/New York
...rapid expansion, JetBlue has yet to take on any of the "fortress hubs" dominated by the majors: Atlanta (Delta), Chicago (United and American), Dallas (American) and Detroit (Northwest). And it does not intend to. Neeleman knows that if he invades the hubs, the big carriers will probably try to price-cut him to death or add flights to overwhelm the still small airline...
...crumbling front of Fair Trade was weakened by another major desertion. After six years of setting Fair Trade prices on its products, Westinghouse last week gave up. It abandoned Fair Trade pricing on its electric housewares and bed coverings. Said Westinghouse: "Actually, we believe in Fair Trade, but under present circumstances, do not believe it is workable." The company explained: 1) mail-order shipments of price-cut appliances from non-Fair Trade places into Fair Trade states "hopelessly" broke down enforcement, and 2) the "varying price situation" from one state to another made national promotions almost impossible...
...meet the hot competition of rayons and tropical worsteds. The shakedown in the textile industry came before Nutter's new fabric was ready. In the first three quarters of Goodall-Sanford's last fiscal year, the company's profits fell 51%; Ward quickly decided on his price-cut to clear out stocks for his new fabric...
...Pont de Nemours & Co. announced that Cellophane would now sell for 35? per lb., moisture-proof Cellophane for 46?. This reduction was the 18th Cellophane price-cut since the product was introduced in 1924. From $2.65 per lb. in 1924 the price had dropped to $1 per lb. in 1928, to 60? per lb. by the end of 1930, to 45? per lb. in 1931. Moisture-proof Cellophane is the ordinary product plus a lacquer coating on one side. It appeared in 1927 at $1.60 per lb., dropped to $1 by 1930, to 52? in 1934. It sold...