Raise Price to Improve Revenues and Margins
CHOICE 1 OBJECTIVE: RAISE PRICE, RAISE PERFORMANCE AND COST BY SMALLER AMOUNT
CHOICE 2 ISOLATE SEGMENTS: DUE TO A UNIQUE FUNCTION
CHOICE 3 COMPONENT: CHANGE THE LIST PRICE
| No. | SIC | Year | Notes |
| 1 | 2043 | 1993 | The overall costs of manufacturing breakfast cereals have remained relatively unchanged as prices have risen. Cereals command brand loyalty, unlike many products. |
| 2 | 3011 | 1994 | As of late Michelin has been charging a 1-2% premium for its products but few analysts or customers think that this attempt at leading prices up will stick. One VL customer said that Michelin has been a few points above the industry standard for some time now, but he feels the premium is justified based on Michelin's reputation as a performer and producer of tires of the highest quality. Other customers have not been so enamored of Michelin's premium pricing and have punished the company with share loss. Michelin currently stands in danger of falling into a Leader's Trap, charging a premium for a difference in reputation that customers have seen erode. All other Standard Leader competitors price at the market, at 1-2 points below Michelin's price. Private-label competitors continue to be price-shavers, generally charging 2-5% less for equivalent products than their brand-name peers. |
| 3 | 3711 | 1990 | Chrysler is telling dealers it plans to raise prices on its 1991 minivans by as much as 12%. Signal price increase. |
| 4 | 7000 | 2000 | LoanGiant.Com gave away a free computer along with a year of Internet access to a woman after she had refinanced her two-year-old home mortgage, increasing it to $40,000 from $29,000. After, the woman has come to realize just how much that free PC will end up costing her. The loan the woman agreed to came with an interest rate of 13% and heavy penalties if she pays it back ahead of schedule. Her closing costs were more than double those of a conventional loan and included payment of more than four points. When the loan comes due in 2015, she will have made payments of $79,560 and owe a lump sum of $34,971.86. |
| 5 | 7375 | 2009 | Angie's List has used paid subscriptions to build itself from a small grass-roots community site that reviews and rates service providers ranging from plumbers to wedding planners into a multimillion-dollar business. Angie's List has monthly, annual, and lifetime rates. Fees vary by locale. Supply and demand determine the price. It is free in some markets where it has few subscribers. A one-year subscription in San Jose, CA is $53 plus $10 sign-up fee. In Chicago, it is $67 plus $15 sign-up. |
| 6 | 7941 | 2004 | Over the past three years, cable companies have been investing billions of dollars in original programming and upgraded technology. During that time, fees for sports programming have risen 59% because of the increasing prices being paid to sports teams and leagues to carry games. |
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