Raise Price to Improve Revenues and Margins
CHOICE 2: ISOLATE THE SEGMENTS WHO MUST PAY THE PRICE INCREASE
D. Segments of customers where competitors are likely to be unwilling to counter the company's change in Value
Customer segments with high servicing costs
| No. | SIC | Year | Notes |
| 1 | 2754 | 1996 | The price premium today has more to do with who the customer is than who the competitor is. Customers who can not use Quad's restrictive pricing model will give a competing company a premium because they need the full service. |
| 2 | 4812 | 2004 | The prepaid market is growing fast. It appeals to students and others with little or poor credit history who might have trouble subscribing to monthly billed service. Depending on how much people use their cell phones, prepaid can also be cheaper. |
| 3 | 5912 | 2009 | CVS Caremark Corp. is apparently steering its pharmacy-benefits patients to its own drugstores by raising co-payments for some who fill their prescriptions at other pharmacies—and competitors are crying foul. The company sent its patients letters that warned them that their co-payments would rise to 50% of the cost of their drugs from 25% unless they switched their prescriptions to a CVS pharmacy. The letters appear to relate to a program called "Maintenance Choice," under which patients can opt to fill 90-day prescriptions through CVS drugstores for the same cost. Company officials have labeled it a success, saying it boosted CVS's in-store pharmacy sales in the first quarter by 1.2 percentage points. CVS's effort appears to be penalizing patients directly for patronizing competing drugstores. |
| 4 | 6513 | 2002 | Office and apartment landlords have renewed tenant leases on a month-to-month basis, but typically they have hit tenants with additional fees to do this. |
| 5 | 7514 | 2008 | Several rental-car agencies have recently started raising prices to reflect increasing operating costs. Hertz Global Holdings has implemented price increases at its retail rental locations as a part of restructuring to curb the effects of inflation, rising commodity costs, and a tough used-car resale market. Enterprise Rent-A-Car, National Car Rental, and Alamo Rent-A-Car have increased retail pricing over the past month at airport locations. The moves represent the attempt by car-rental companies to remain profitable. Car-rental rates will rise by an average of more than 10% in North American airport markets, or more than $5 a day; 5% in off-airport markets, and about 10% in European airport and downtown markets. Rate increases vary by location. |
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