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	3995	2003	During the year 2004, the Company, as an industry leader, plans a 6.5% average price increase.
2	4841	2009	Basic cable costs have climbed about 20% since 2003, to about $44.28 a month. But factor in Internet access, extra channels like HBO or regional sports, and a digital video recorder, and the average monthly bill is more like $98, up 63% since 2003.
3	5912	2004	Some of the generic drugs most commonly used by seniors will still provide pharmacies a healthy margin. That's because pharmacies buy their generic drugs at very low wholesale prices but mark many of them up by as much as 2,000%, even for purchases made with a discount card.
4	7372	2008	Two of the biggest makers of business software have raised prices, a sign that consolidation in the industry may be easing the competition over prices that has been a hallmark of the last decade. SAP has raised prices for the ongoing support and customer-service fees, known as maintenance, that are part of large software purchases. A month earlier, Oracle raised list prices. The changes in software don't stem from a shortage of supply or a rise in demand. They are attempts by software makers to increase their bottom lines. Business software makers spent much of the last decade competing on price; now an acquisition wave has reduced the number of suppliers and has reduced the pressure on SAP and Oracle to lower their prices. These companies face less competition; businesses that have already invested in software from the companies can't afford to rip the systems out and replace them with software from other companies.
5	9311	2002	San Diego changed two nearly empty carpool lanes on Interstate 15 to toll lanes. The toll, levied automatically via a radio transponder, like the E-ZPass badges used on Northeast highways, can change as often as every seven minutes, with a charge of between 25 cents and $8 per trip, depending on how crowded the lanes are at that time. A recent poll showed that drivers think the special toll lanes save them 15 to 45 minutes per trip, but they actually save them only 15 to 20 minutes. San Diego is using its $1.8 million in annual toll revenues to fund an express bus line.

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