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 FUNCTION
CHOICE 3 COMPONENT: ADD AN EXTRA FEE ON TOP OF VARIABLE CHARGE
| No. | SIC | Year | Notes |
| 1 | 5900 | 1997 | In traditional retail, it takes about $10 billion in sales to make $150 million in profits. CUC can make more than that selling memberships to consumers interested in discount web shopping. NetMarket recently signed up 700,000 members, many at an introductory rate of $1 for three months. One hundred thousand new members join each month and a significant percantage stay on. These people pay the full annual fee of $69. |
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