Raise Price to Improve Revenues and Margins

CHOICE 1 OBJECTIVE: RAISE PRICE WITH NO CHANGE IN PERFORMANCE AND COST

CHOICE 2 ISOLATE SEGMENTS: CUSTOMER SEGMENTS WHO REQUIRE A SPECIFIC PRODUCT SYSTEM COMPONENT

CHOICE 3 COMPONENT: ADD AN EXTRA FEE ON TOP OF VARIABLE CHARGE

No.	SIC	Year	Notes
1	3544	1988	Foreign competitors usually have a lower bid price than domestic but then add fees which total up to 50% of price (shipping, extra paperwork & overseas communication, added inventory, design changes).
2	4215	2003	Package-delivery companies such as United Parcel Service Inc. and FedEx Corp. have offset increased expenses by adding on numerous fees over the past couple years. Starting in 1999, package-delivery companies charged $1 per package for deliveries to remote areas. Now, they add on "fuel surcharges" for the gas in the planes, trains, and trucks used to deliver packages. These fees are broken out on bills for regular customers, though not always for infrequent ones.
3	4311	1999	The company's $49 startup package, which includes a $25 postage credit, is aimed at the SOHO (small office/home office) market – people who generate more mail than the average monthly bill payers, but not enough to justify a meter.
4	4512	2004	American Air will no longer offer free meals in coach on domestic flights but will begin selling food on longer flights. The airline expects to save $30 million a year with these cuts. Special-requests will also be discontinued on non-transcontinental domestic flights. A morning and afternoon snack box will be offered at $3 a piece. More extensive options will be available on longer flights, including sandwiches. Food in first class will continue to be free and the free beverage service in coach will still offer granola bars or pretzels.
5	4512	2006	As part of an attempt to increase revenues, many airlines have begun charging for food and drinks, skycap services and phone reservations. The newest trend is seating. Allegiant Air charges $10 each way for passengers to reserve a seat. About 80% of passengers opt to pay this fee.
6	4512	2008	In order to boost revenue to offset record fuel prices, Delta Air Lines is imposing new or higher fees on a host of travelers, including frequent fliers, passengers traveling with pets and people booking their tickets over the phone. One major change is a new $25 handling charge for any Delta award ticket booked through a Delta representative that includes a segment on another airline. In the past, people who redeemed their Delta SkyMiles for free tickets on partner carriers like Northwest and Continental did not pay a handling charge whether they booked it on the phone or online.
7	4512	2009	Spirit Airlines, an ultra-low-cost carrier that has pioneered many fees, says it has worked out an agreement with the U.S. Department of Transportation to begin charging a "passenger usage fee" — perhaps $5 to $10 per ticket — for the privilege of buying a ticket anyplace other than at Spirit's airport ticket counters. Spirit has already sparked some discontent with its racy promotions, ads in airplane cabins, and on flight-attendant uniforms, fees to reserve seats and the addition of travel insurance to tickets unless customers opt out. Spirit says the fee is part of its effort to separate as many services and costs out of base ticket prices as it can.
8	4512	2009	Shop for airline tickets online or through a travel agent and the price quotes you get don't tell the whole story these days. But that's about to change. For airlines, the new technology will make it easier to sell premium seats, access to premium security lines, airport lounge day passes and other perks, and enable airlines to push further with "a la carte" pricing. More carriers are expected soon to offer more add-on services at the point of ticket purchase. Airlines have been able to quickly adapt kiosks at airports to offer add-on fees and collect payments because those kiosks run on separate computer systems that are simpler than their world-wide reservation systems.
9	4513	2003	To restore revenue lost in the economic downturn, delivery companies have introduced and increased certain fees, including proof of delivery to a missing account number.
10	4812	2008	AT&T offers an option for customers to buy an Apple iPhone, but to forgo the previously mandatory two-year contract with AT&T, provided they pay an extra $400.This means an iPhone of $599 or $699.
11	5331	2008	Retail price wars start early for Christmas toy sales. Amazon and the individual toy sellers it promotes match Wal-Mart's low prices, but the discounts were offset by shipping charges.
12	6021	1988	Bank charges for maintaining a checking account, purchasing money orders, & renting a safety deposit box are all going up industry-wide. The average monthly maintenance charge for a checking account has risen from $2.70 in 1984 to $5.21 in 1988.
13	6021	2003	Washington Mutual allows other banks' customers to use its ATM machines without paying the customary $1.50 surcharge. But other fees still apply. Washington Mutual still charges its own customers $1.50 for using another bank's ATM.
14	6021	2005	Most bank accounts don't carry monthly maintenance fees-instead, customers get hit with a myriad of other fees. At San Francisco's Well Fargo & Co., the fee schedule for California is 55 pages long. The charges include a $2 hit every time a customer with a low balance calls a service rep, $20 for closing an account within six months of opening it, and $30 per hour when a staffer helps a customer reconcile an account. Wachovia Corp. charges a $5-a-month fee for accounts that remains inactive for more than a year.
15	6211	2001	Online brokerage firms are introducing more fees to compensate for a loss of commissions. Datex charges $2 to mail a paper confirmation of a stock trade, a service that was originally offered for free. TD Waterhouse charges $2.50.
16	6211	2002	Next month, Charles Schwab will boost more than a dozen investor charges. Most of the higher fees are for services that require dealing with an actual person instead of a computer.
17	7011	1998	New Orleans Hilton Riverside charges $25 (plus tax) for check out up to 2 hours late; $50 (plus tax) for check out from 2- to 6-hours late; and the full nightly rate for residents who leave after 6 p.m.
18	7514	2006	Why is rental car insurance so confusing? Selling insurance is a way of boosting revenue and offsetting the low rental price.
19	7941	1998	Pro sports teams are charging fees for the "right" to buy season tickets. Payments range from $250 to $25,000 for seat rights that in some cases never expire. The cash pays for new stadiums.

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