Raise Prices to Improve Revenues and Margins
CHOICE 1 OBJECTIVE: RAISE PRICE, RAISE PERFORMANCE AND COST BY SMALLER AMOUNT
CHOICE 2 ISOLATE SEGMENTS: CUSTOMER SEGMENTS WITH HIGH SERVICING COSTS
CHOICE 3 COMPONENT: ADD AN EXTRA FEE ON TOP OF VARIABLE CHARGE
| No. | SIC | Year | Notes |
| 1 | 4812 | 2005 | Prepaid mobile phones are popular with new users, including senior citizens and teenagers. A range of traditional and prepaid companies have sprung up to provide these services. Verizon offers an expensive $99.99 starter kit but has standard $0.10 rates with a 99-cent a day access charge. Despite the higher costs, calls within the Verizon Network are unlimited. |
| 2 | 4812 | 2005 | Prepaid mobile phones are popular with new users, including senior citizens and teenagers. A range of traditional and prepaid companies have sprung up to provide these services. T-Mobile To Go has a high $79.99 starter kit but offers discounts when the user purchases minutes in higher quantities. |
| 3 | 4813 | 2000 | Prior to AT&T's 7 cents a minute plan consumers faced a bewildering set of pricing options for long distance phone service. AT&T charged 15 cents per minute per call with no monthly fee; or 10 cents a minute with a $4.95 monthly fee. |
| 4 | 5411 | 2001 | To cover its expenses, Tesco charges $8 a delivery. Webvan charges $4.95 and only makes that charge for orders of $75 or less. |
| 5 | 6162 | 1998 | The subprime market provides a lot of flexibility for the consumer and the lender, but it can also become abused. For subprime lending, First Alliance Mortgage charges interest of up to 24.8%, borrowers pay a $179.50 sign-up fee, and a $38.50 annual fee. Their credit is tied to the equity of their homes so the penalty for non-payment is foreclosure. |
| 6 | 6163 | 2003 | New mortgages offer buyers more flexibility but often include higher fees. E*Trade's new Mortgage on the Move allows borrowers to take your interest rate and balance on your current mortgage to your next home, ideal if you plan to move in a few years. However, a 0.6% interest rate is added to the fixed rate, making it difficult to recoup the extra fees. |
| 7 | 6211 | 1998 | Ameritrade charges a $60-an-hour research fee, plus $5 for every trade slip mailed. |
| 8 | 7372 | 1999 | Microsoft offers free support for users of Money on all questions within its normal business hours. It's $15 a call outside those hours. |
| 9 | 7374 | 2002 | Yahoo and Microsoft's MSN Hotmail have begun charging up to $50 a year for enhanced services, such as e-mail forwarding and extra storage. |
| 10 | 8361 | 1997 | These residents may need increased care or monitoring due to such problems as incontinence or wandering. Sunrise charges an extra monthly fee for this higher level of care based on the additional services provided. Approximately one half of Sunrise's residents utilize the Plus Care program. |
| 11 | 8361 | 2001 | Sunrise doesn't just enroll more people in its assisted-living homes, it also charges them more. Sunrise makes the business pay by charging hefty premiums for care beyond assisted living's basics, which are help with dressing, bathing and getting around. |
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