Raise Price to Improve Revenues and Margins

CHOICE 2: ISOLATE THE SEGMENTS WHO MUST PAY THE PRICE INCREASE

B. Customer segments who are captive to the company

No.	SIC	Year	Notes
1	2893	2005	More retail cartridge stores are springing up as consumers look for cheaper refills. Currently, a new cartridge from HP, Canon, or Lexmark costs more than an ounce of Chanel No. 5 or Dom Perignon champagne. Most of Cartridge World outlets offer refills and clones that are cheaper than brand-name cartridges. The cost to refill a brand-name product usually runs 40%-60% of the cost of a brand-name product. An HP inkjet cartridge costs $30, but a refill at Cartridge World in Texas will cost only $16.50.
2	3711	2002	Detroit automakers have been forced to offer hefty rebates in a soft economy. They are striking back with stealthy jumps in sticker price. Once standard features such as antilock breaks and side-impact airbags are being added as options while new features such as special air filters and automatic headlamps come with a price tag.
3	5411	2008	With food costs soaring and the economy slowing, the nation's supermarkets are touting their discounts even as they increase the price of most items. Food companies have also been looking for ways to reduce waste and make up for their increased output costs without consumers noticing. PepsiCo Inc's Frito-Lay snack unit is raising prices and reducing the number of chips in some of its bags.
4	6531	1999	Coldwell Banker Parnegg Metro raised its commission to 7% for certain deals about a year ago, and six months ago introduced a "global-marketing fee" of $245 a transaction.
5	7372	2009	Microsoft hasn't decided to offer Office 2010 as a monthly subscription service like it does for Exchange and SharePoint, so it will charge its normal up-front price, and companies will maintain the programs on their own servers. But some say the subscription route, which should generate bigger revenues, is coming. Microsoft can charge large corporate customers more to rent software and contract for service than it charges them just to buy the programs. However, Microsoft doesn't know for sure how costly it will be to assume the maintenance load.

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