Raise Price to Improve Revenues and Margins
CHOICE 1 OBJECTIVE: RAISE PRICE, REDUCE PERFORMANCE AND ITS COST
CHOICE 2 ISOLATE SEGMENTS: DUE TO A UNIQUE CONVENIENCE
CHOICE 3 COMPONENT: ADD AN EXTRA FEE ON TOP OF VARIABLE CHARGE
| No. | SIC | Year | Notes |
| 1 | 4512 | 2008 | Forcing customers to pay for services previously included with ticket purchases, United Airlines and US Airways Group Inc. begin charging $50 round trip for checking a second piece of luggage. Airlines found that consumers will switch airlines over even a $5 fare difference, but are less sensitive to fees paid at the airport. |
| 2 | 4832 | 2009 | Sirius XM Radio plans to increase prices for subscribers with multiple accounts and begin to charge for its online music feed, moves that may help the pay-radio service meet looming debt payments. Starting March 11, users with more than one account will pay about $9 for additional accounts, up from about $7. Also, subscribers will have to pay about $3 a month for the online version of the service, now free. Users will be able to defer the increases if they sign up for a long-term annual contract extension, or pay up to $500 for a lifetime subscription. They added that there is no plan to change the standard monthly subscription price. |
| 3 | 4953 | 2008 | Plymouth, a town that has adopted a PLATY system, also has in place the possibility for a flat annual fee of $140 a household; if you pay this, you can still bring all the trash you want to one of three transfer stations. Plymouth's system works like this: trash would be accepted at the transfer stations only in bags purchased at local merchants for up to $1.25 each, depending on size. The town would get a cut of the bag sales and residents would also pay a $65 annual fee. |
| 4 | 7011 | 2000 | Hoteliers are getting increasingly creative with "revenue management" techniques – such as charging higher rates for local phone calls that last longer than 20 minutes, under the logic that such long calls are likely to be computer connections rather than conversations. |
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