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 FUNCTION
CHOICE 3 COMPONENT: CHANGE THE BASIS OF CHARGE
| No. | SIC | Year | Notes |
| 1 | 2052 | 1992 | Nabisco has Chips Ahoy! Selections in a smaller bag. The price of a package of cookies is lowered, but the price per cookie is raised. Add price point. |
| 2 | 2843 | 2007 | General Mills will raise prices on its Big G cereals by reducing the size of cereal boxes, essentially selling less for more. This small increase follows moves by rivals by Kellogg and Heinz in response to rising commodity costs. |
| 3 | 2893 | 2005 | Facing pressure from off-brand ink sellers and sticker-shocked customers, Hewlett-Packard and Lexmark International are launching lower-capacity ink cartridges with smaller price tags. HP is selling cartridges of different capacities – with prices starting under $15 per cartridge – for the first time this year. It also has been pushing “Value Pack” bundles of ink and paper for making a specific number of prints. Lexmark, meanwhile, has launched two printers that use a single $20 ink cartridge. That price is about a third cheaper than the typical cartridge. Not that either company is ready to give up the famously high margins associated with their ink business. Drop for Drop, the new ink costs more, not less. |
| 4 | 7514 | 2005 | Fractional ownership, where buyers purchase a share of an expensive asset and pay the seller fees to handle the scheduling and maintenance, is a fixture of the private jet industry and a growing force in the market for vacation properties. Now, this model of ownership is creeping into other asset classes, too. Exotic Car Share, the Chicago-area company selling shares in the Bentley, began as a storage facility for fancy cars about a decade ago, before adding a club that owns cars and shares them among its members. That is still the core of its business: Participants pay a membership fee plus usage charges to have access to its fleet of vehicles, which include everything from a Porsche Boxster S to a 1971 Camaro. Exotic's established business — it has 547 club members — gives its fractional effort a reputation to stand on. |
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