IKEA’s marketing program is designed to be thrifty but still effective. In fact, all of IKEA’s marketing activities are designed to maintain a downward pressure on operating expenses. For example, in most stores, IKEA does not accept checks—only cash or credit cards, including its own “IKEA Card.” This helps to reduce IKEA’s accounts receivable and eliminates the need to maintain an expensive collections operation. With policies like these, it is not surprising the company’s operating margin of 10 percent is among the best in the home furnishings industry. And, despite its low cost and price model, IKEA aims to cut prices by an average of 2 to 3 percent every year.