Raise Price to Improve Revenues and Margins
CHOICE 1 OBJECTIVE: RAISE PRICE, RAISE PERFORMANCE AND COST BY SMALLER AMOUNT
CHOICE 2 ISOLATE SEGMENTS: DUE TO A UNIQUE RELIABILITY
CHOICE 3 COMPONENT: CHANGE ANCILLARY OR SUPPORT PRODUCT
| No. | SIC | Year | Notes |
| 1 | 2000 | 1987 | Kingsford testing a new one-use "BBQ bag". The tightly packed bag of charcoal is thrown on the grill, bag and all, and lighted. (Keeps the hands clean). A 2.5 pound bag retails for $1.59, regular 5 pound bag costs $2.09. |
| 2 | 2086 | 2004 | From the start, both Coke and the bottlers botched C2's pricing strategy. Instead of costing only about 15% more than Coke's other colas, C2 at times cost 50% to 60% more than regular Coke – especially on weekends, when regular sodas are usually discounted. The price difference turned off many consumers who might otherwise have been willing to give C2 a try. |
| 3 | 2330 | 1997 | The Dana Buchman team is taking the risky step of launching a new Luxe line of clothes, with a 25% steeper price tag. They will use finer fabrics and separate from the main Dana Buchman collection in stores. The goal is to woo upscale shoppers from top-price designer collections like Calvin Klein and Donna Karan by instilling glamour and exclusivity into the Dana Buchman Line of clothing, while offering a better deal. |
| 4 | 2711 | 2002 | Pearson's Financial Times sells headline updates to Europeans with mobile phones and charges $172 an hour for access to its staff at the "Ask.FT" research service. |
| 5 | 2869 | 1992 | NutraSweet introducted NutraSweet Spoonful, a glass jar of aspartame formulated to look like sugar, that costs 42% more per serving than Equal on the theory that sugar consumers seeking alternatives won't care. |
| 6 | 3021 | 2000 | Adidas also plans a line of expensive sports togs called Equipment that will take on Prada, Polo and other designers that have wandered into the sports-apparel business. Shoes will start at $125; outer jackets will cost $500. Problem is, fashionistas buy those designer brands because they are more about labels that performance. Adidas is not a status symbol. |
| 7 | 3571 | 2005 | Apple Computers Inc. will start selling its lowest-priced Mac ever, a tiny but full-featured desktop computer called the Mac mini, priced at just $499. It's Apple's move to move into the low-end market. Long have consumers been put off by the high prices of Apple's products. The widely praised iMac G5 starts at $1,299. And the current lowest priced Mac, the eMac model, is $799. Its prices look very high compared with the cheapest Windows machines, which are under $500. But there's a catch to the Mac mini. The mini doesn't include a monitor, keyboard, or mouse. Apple says it was designed to work with monitors, keyboards, and mice from Windows PCs that it assumes switchers already own. |
| 8 | 3711 | 2001 | Currently, several luxury car makers are creating models at a lower price point. Mercedes is making a $26,000 car, Jaguar a $29,950 car, and BMW an $18,000 car. These more affordable luxury vehicles are aimed at the younger buyer demographic. |
| 9 | 3751 | 2000 | Cannondale hopes it can parlay its bike-building prowess into a new venture: dirt bikes and all-terrain vehicles, where it faces tough competition from Japanese manufacturers: Honda, Kawasaki, Suzuki, and Yamaha. Cannondale's dirt bikes will sell for around $8,000, compared with $5,000 to $6,000 for Japanese competitors. Cannondale products come with top-of-the-line suspension and other goodies that some buyers add as after-market upgrades on cheaper bikes. Cannondale already has much of the required welding and metallurgy technology. Their 400cc engine has some innovations, its mounted backward compared with most motorcycle engines, with the fuel and air entering from the front and exhaust exiting at the rear. |
| 10 | 3861 | 1994 | Kodak to remove its Ektar premium film brand from the market & replace it with a new film called Royal Gold, which will sell for 20% to 25% more than Gold Plus (SL), but less than Ektar sold for. Royal Gold offers richer colors and sharper pictures. |
| 11 | 4011 | 2002 | Union Pacific has started charging its rail freight customer as much as 40% extra, comparable to trucking charges, for faster delivery on shipments from Los Angeles to Atlanta. |
| 12 | 5812 | 2006 | Hotels, especially in New York and Las Vegas, are introducing fancy restaurants which boost room rates and property values. They are doing so by importing top chefs and investing in extravagant décor. |
| 13 | 6141 | 1988 | AmEx offers its Optima credit card to current charge card holders for an additional $15 annual fee. |
| 14 | 6141 | 2000 | Diners Club International is issuing its first new card in the U.S. in five decades. They are resuscitating another illustrious name from the past, Carte Blance, a card also owned by Citigroup that is still in limited circulation but hasn't been marketed for years. The chief targets for the new Diners Club Carte Blanche card are people who might actually remember Carte Blanche and Diners Club. They are middle-aged and well-heeled consumers willing to pay a $300 annual fee, the same as it costs to have an American Express Platinum card. The Diners Club Card offers free international cell-phone rental, bookings for more than 200 famous golf courses, a free companion airline ticket on British Airways, restaurant discounts, a concierge service to give references on everything from museum opening times to lawn care, and an extended billing period to avoid interest charges. |
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