Raise Prices to Improve Revenues and Margins
CHOICE 1 OBJECTIVE: PRICE THE SAME, REDUCE PERFORMANCE AND COST
CHOICE 2 ISOLATE SEGMENTS: DUE TO UNIQUE FUNCTION
CHOICE 3 COMPONENT: CHANGE MAIN PRODUCT/REDUCED RESOURCES REQUIRED/TIME
| No. | SIC | Year | Notes |
| 1 | 0 | 2001 | If an early adopter of an innovative new product is willing to pay a premium for a product (as seen through market research), a company may set a higher price to capture the extra value, with planned reductions down the road. This also helps companies match demand to production capacity. |
| 2 | 2711 | 2009 | Declining ad and print subscription revenue has prodded some media companies to rethink their strategies of offering all-free online content. The average daily circulation of US daily newspapers fell 7.1% for the past six months ended March 31 vs. the year-earlier period. That's steeper than the 4.6% decline for the preceding six-month period. Many advertisers are allocating more of their budgets online. Traditionally, circulation has been a third of newspaper revenue. Niche newspapers and newspapers that own specific markets are the most likely to be able to charge for online content. |
| 3 | 2731 | 2007 | Book publishers engage in price discrimination with their release of hardcover editions before releasing paperbacks. Those who have the money or are impatient can pay extra to have the book right away. |
| 4 | 3571 | 1987 | Compaq Computer, the largest manufacturer to have brought out 386-based computer, sells its model for $6,499, whole system sells for about $8,000 – 40 to perhaps 100% higher than the next step down in performance, the AT-class machines. |
| 5 | 3571 | 1992 | Compaq's new computers are priced about 15% higher than similar machines w/ fewer advanced features by Dell & AST Research, and 15-20% lower than comparable models by Toshiba and IBM. |
| 6 | 3571 | 2001 | South San Francisco's Polywell Computers, which has been in business since 1987, doesn't attempt to undercut the major PC-makers, said marketing director. Polywell specializes in high-performance systems. All are custom made, and buyers can choose the components. |
| 7 | 3571 | 2001 | Compaq's iPaq Pocket PC has become a huge success, stealing market share from rival Palm. One key to this success is that, while Palm requires that special applications be installed separately, and were until recently, sold separately, iPaq comes equipped with all the necessary tools. Big companies are more likely to invest in the iPaqs because they require less tech support and training. |
| 8 | 3571 | 2001 | The average price for the Compaq iPaq Pocket PC is $500 vs. $209 for the Palm. Compaq is scoring customers in the corporate market who want more capable devices for accessing e-mail and business applications. Consumers also like the iPaq Pocket PC for its bright colorful screen, faster PC synching and ability to play MP3 music files. |
| 9 | 3575 | 2001 | PC makers use bundled packages to take their products out of the commodity realm. Bundles can include special hardware, software and other peripherals. |
| 10 | 3674 | 2003 | Intel plans to create a 3rd-generation Itanium chip called Madison. AMD is not worried, however, as its product (Opteron) will target a different market. AMD is aiming for the gap between Intel's low-end Xeon and high-end Itaniums. It essentially wants to bridge the gap. AMD also plans to launch a 64-bit chip for workstations and PCs called the Clawhammer. Intel sells more server chips than any other chipmaker. |
| 11 | 3861 | 1986 | Polaroid's Spectra instant camera is priced at about $150, more than twice as high as its previous entry in the field. Spectra has electronic focus, and Polaroid offers Spectra users a copying service that features laser technology. |
| 12 | 3861 | 1995 | Initially, Polaroid offered its new SX-70 to dealers at a price of $120 per camera; end-users paid more than $200 on average. Two years later, to capture the wider market, Polaroid offered the same camera at prices that were less than half the introductory level. Polaroid split the market between customers who "couldn't wait" for the product and those who could. |
| 13 | 4513 | 1995 | While typical ovenight deliveries run about $10 at UPS, a same day package on SonicAir runs about $135. |
| 14 | 5311 | 1986 | Study found that often department stores charge more for furniture. But the stores were quick to note that they offer better service. "We offer free interior design service, more personal attention, a better educated workforce, and better variety." |
| 15 | 6141 | 2003 | New mortgages offer buyers more flexibility but often include high fees. Fannie Mae allows approved lenders to defer two payments a year and 10 over the life of a 30-year loan in case of layoff or financial problems. |
| 16 | 7372 | 1998 | CD-ROM encyclopedias differ in price: Britannica's Standard Edition, $65; Compton's, $39; Microsoft's Encarta, $35; Grolier, $59; IBM's World Book (deluxe edition), $59. |
| 17 | 7372 | 2004 | Despite soaring revenues in the last few years, software maker BEA systems has stalled in the face of fierce price competition and sluggish overall demand. The company now has 27.5% of the market share for applications servers compared to rival IBM's 41.3%. Company leadership has been unwilling to lower prices to those of rivals IBM and Oracle Corp; starting prices begin at $17,000 for software, about $2,000 higher than rivals. Support can range up to three times the prices of rivals, about $6,000 for five years. As businesses are more cost-conscious, this makes a big difference. However, aggressive investments in research and development have provided the company with a line of innovative products. |
| 18 | 7375 | 1999 | On many sites, users pay about a 2.5% fee to the auctioneer. FairMarket will act as the inermediary between all the net work partners. It will collect the fee which will approximate to 3% of the value of the goods sold. FairMarket gets paid in two ways. It recieves a flat fee each month for auction hosting-the fee starts at about $10,000 per month-and it recieves a 1% cut from every sale on its network. |
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