Raise Price to Improve Revenues and Margins
CHOICE 3: USE THE COMPONENTS OF PRICE TO FURTHER CONTROL THE EXTENT OF THE HIGHER PRICE
D. Change the Optional Components of Price:
Set limits on the usage of the product
| No. | SIC | Year | Notes |
| 1 | 3571 | 2004 | Dell, which sells directly to customers over the phone and Internet, has moderated its pricing in markets where it thought there was a risk of losing money. One such niche was low-end consumer PCs, where desktops have dropped to $299 and notebooks to $699. Dell has also cut the standard warranty of its lowest-priced consumer PC from one year to 90 days. |
| 2 | 4512 | 2008 | The value of frequent flier miles has dropped so far that airline programs don't drive customer loyalty like they use to. Travelers use to get about two cents per mile in value from frequent-flier programs, but that has fallen to about 1.2 cents. Airlines have raised the price of awards and tightened the availability of the cheapest award levels, forcing travelers to jump to more-expensive mileage levels to claim seats. More miles in circulation (from sources including credit cards, car rentals, mortgages, etc.) make it harder for consumers to spend them on available seats. |
| 3 | 6141 | 1989 | High-volumes are available with customers who are credit risks but who charge high volumes on their cards. Citi and others issue credit cards whose outstanding debts are covered by a certificate of deposit. |
| 4 | 7299 | 2005 | Blogging sites like Livejournal and Xanga don't allow users to upload photos to their blog entries unless they pay as much as $4 a month for premium services. Myspace.com only lets users have enough room for a dozen photos. |
| 5 | 9221 | 2007 | To deal with a parking crunch, Portland raised rates to 75 cents for some prime downtown spots that had been free and abandoned time limits. The move has encouraged more drivers to use underutilized parking garages away from the main routes. |
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