Raise Price to Improve Revenues and Margins
CHOICE 1 OBJECTIVE: RAISE PRICE, RAISE PERFORMANCE AND COST BY SMALLER AMOUNT
CHOICE 2 ISOLATE SEGMENTS: CUSTOMER SEGMENTS WHO REQUIRE A SPECIFIC PRODUCT SYSTEM COMPONENT
CHOICE 3 COMPONENT: ADD AN EXTRA FEE ON TOP OF VARIABLE CHARGE
No. | SIC | Year | Notes |
1 | 4512 | 2006 | As part of an attempt to increase revenues, many airlines have begun charging for food and drinks, skycap services and phone reservations. The newest trend is seating. Air Canada charges $12 for reserved seats on its cheapest fares within Canada and the US. |
2 | 4812 | 2002 | Second-generation gearmakers claim that the economics now work. In Pocahontas the first $30,000 antenna was picked up by the town and the phone company got free use of the water tower to mount it on. Antennas cost just under $200 per user while the modems cost another $500. If users pay a standard $30 a month, the capital cost can be recouped quickly. As more users sign on, the town can double capacity simply by adding another transmitter. |
3 | 6141 | 2002 | Coinstar operates the nation's only network of supermarket-based coin machines. Users can simply pour in their coins, which are then automatically counted and returned via a receipt redeemable for cash at the checkout. An 8.9% fee is taken for the exchange. |
4 | 6324 | 1996 | Oxford's Freedom Plan is a point-of-service product that, for an additional charge, allows patients to visit doctors outside its network. |
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