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 MAIN PRODUCT/IMRPOVE EXPERIENCE/INCREASE SECURITY
| No. | SIC | Year | Notes |
| 1 | 2590 | 1993 | Algoma is trying to command a premium for exclusive products. Last year, it introduced specially reinforced doors with extra-large windows now required in certain buildings to comply with ADA. The company priced the door 10% to 15% higher than its standard products. |
| 2 | 3462 | Although the rail anchor business accounts for only 6% of Varlen's rail business (roughly 3% of total company revenues), the business has the highest margins in the railroad products segment. Rail anchors are manufactured to customer orders. | |
| 3 | 3661 | 2005 | Firefly Mobile has introduced a small, colorful cellphone aimed at kids from 8 through 12. The phone prevents direct dialing, only preset numbers can be called and there is an emergency 911 button on the side. The phones are sold for $99.95, including 30 minutes of talktime. Airtime is purchased in increments of $10, $25 and $50, which gives you 40, 100 and 200 minutes respectively. Target and Triton PCS will sell the Firefly. The rugged phone can handle rough handling, is loaded with kid-friendly features and it can be set to receive calls only from the phonebook. |
| 4 | 5941 | 2000 | Some think that the category killer concept won't work in sporting goods because sports fans become more avid, they tend to patronize specialty stores with narrower focus, where sales people have more expertise-and prices are higher. |
| 5 | 5999 | 1990 | Some retailers order minor modifications to thwart comparison shopping & pricing. For example, one might order a mass-produced mattress from a major manufacturer w/ a special cover that makes it 'one of a kind' & impossible to compare at other stores. |
| 6 | 6399 | 2002 | New insurance allows homeowners to protect themselves in fluctuations in home values. This service offered by Neighborhood Reinvestment and Realliquidity.com requires as a premium a percentage of the home price, after three years and upon sale of the home, the owner can collect a payment equal to the percentage decline in a local home-price index times the coverage. |
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