Raise Price to Improve Revenues and Margins
CHOICE 1 OBJECTIVE: RAISE PRICE WITH NO CHANGE IN PERFORMANCE AND COST
CHOICE 2 ISOLATE SEGMENTS: DUE TO A UNIQUE CONVENIENCE
CHOICE 3 COMPONENTS: ADD AN EXTRA FEE ON TOP OF VARIABLE CHARGE
A FEE THE CUSTOMER MAY AVOID
| No. | SIC | Year | Notes |
| 1 | 4512 | 2005 | Airlines also sometimes charge extra for luggage. AirAsia in Kuala Lumpur, in Jakarta, for instance, have a 15-kg. limit for all check-in bags, considerably lower than most traditional carriers. By contrast, Cathay Pacific Airways, a major carrier in Asia, has a 20-kg. limit. Travelers can expect to pay about $3 extra per kilogram for bags over the limit. |
| 2 | 4512 | 2008 | Forcing customers to pay for services previously included with ticket purchases, United Airlines and US Airways Group Inc. begin charging $50 round trip for checking a second piece of luggage. Southwest Airlines has already implemented a similar fee of $50 for checking a third bag (it does not charge for the first two). At ultra-cheap discounters like Skybus Airlines and Spirit Airlines, customers pay $10 to check one bag, but fees are generally low. Skybus charges $50 for round-trip for an oversized bag, compared to $100 round-trip at Southwest and JetBlue Airways Corp. |
| 3 | 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. Without fees, a $193 round-trip fare between New York and Fort Lauderdale for travel later this month on US Airways Group Inc. looks cheaper than a $197 fare at JetBlue Airways Corp., for example. But if you're checking two bags, you'll pay $80 in fees on US Airways and only $40 on JetBlue. |
| 4 | 4813 | 2001 | Cingular's Web site warns that in some markets the service doesn't automatically include voice mail and three-way calling, and there may be a charge for using call forwarding. Some carriers count checking voice mail as a call. In some areas, you may get charged for a call that isn't answered if you let the phone ring for a minute or more. |
| 5 | 5122 | 2005 | The drug wholesale industry is dominated by three firms: Amerisource, Cardinal Health, and Mckesson. Those three control 90% of the business in the U.S. There's no differentiation in the service they provide. The new inventory management agreements put a squeeze on wholesalers' margins. To counteract the impact, wholesalers are trying to find a new way to make money. They call it fee for service. They want drug makers to pay for each routine service the wholesaler provides – from packing and labeling to special handling and product returns. The wholesalers are not having much luck getting manufacturers to follow along, though. |
| 6 | 5331 | 2003 | Target Corp. and Best Buy Co. have a "restocking fee" of 15% for the privilege of returning electronics items such as camcorders, laptops, and radar detectors. . Best Buy says the penalty is a way to discourage people who would take the camcorder and return it after using it once. |
| 7 | 5945 | 1993 | Sharper Image has also asked for "guaranteed sale" rights from some suppliers, meaning the suppliers must take back products that don't sell. |
| 8 | 6021 | 1988 | Only 16% of banks nationwide charge for ATM withdrawals. For those that do, charges range from 10 cents to 50 cents. |
| 9 | 6021 | 1998 | Some banks charge a $15 dormancy fee on accounts that are inactive for six months. |
| 10 | 6141 | 1999 | Included in rising industry-wide credit card fees are annual fees and cash-advance fees. Most of the growth is coming from a rise in late-payment fees and over-the-limit fees. |
| 11 | 6141 | 2003 | Credit card companies are very creative when it comes to fees. Deadlines for paying bills are now as little as two weeks, and they're rigidly imposed, causing further late fees. The number of credit-card issuers with $35 late fees doubled last year. People can avoid late fees by paying their bills over the phone or online. But some banks and credit-card companies charge for that, also. Washington Mutual demands from virtually all of its customers a total of $60 a year to pay their bills online. And it costs $15 to pay bills at the last minute over the phone at MBNA Corp. and Providian Financial Corp. MBNA and Providian argue that it takes time to process payments by phone and that customers can pay online for free. |
| 12 | 6141 | 2004 | Next month, Bank of America will boost its over-the-limit fees and introduce a new structure that will mean higher late fees for some customers. |
| 13 | 6211 | 1997 | Differences in pricing by online brokers: some have hidden fees such as postage and handling on any correspondence. |
| 14 | 7011 | 2003 | Marriott's agreement with Intel includes advertising and direct promotions. Guests who have installed a wireless card in their laptops must pay $2.95 for the first 15 minutes for the service and 25 cents a minute after . |
| 15 | 7011 | 2004 | Major hotel chains like Marriott, Hilton and Starwood charge guests for in-room, high-speed Internet access at their priciest brands and offer it for free at lower priced brands because they assume that business travelers who pay higher rates won't complain about an extra $10 to $20. They also use the fees to recoup the cost of installing and maintaining the service. |
| 16 | 7841 | 2002 | Blockbuster charges $4 to rent each DVD and charges late fees. |
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