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
AN UNAVOIDABLE FEE
| No. | SIC | Year | Notes |
| 1 | 4812 | 2002 | Sprint tacks on a 1.08% "carrier property tax." Sprint chooses to pass this on "because it allows us to continue to provide low per-minute rates." |
| 2 | 4812 | 2003 | In an attempt to boost revenue, cellular carriers are tacking on surcharges and add-on expenses. Often disguised as taxes or "regulatory cost recovery fees" they can make comparison shopping difficult. In one study, Cingular's $39.99 package added up to $49.97, 24% more than advertised. Companies say these are necessary because of undue government regulations and costs to upgrade systems. |
| 3 | 4813 | 2001 | Exorbitant calling-card fees are just one of the reasons customers end up with sticker shock when they open their monthly phone bills. An increasing array of charges are turning simple phone calls into a minefield of potential fees. AT&T corp. charges customers who use its calling card with the company's flagship 800 number at a $1.25 service charge for each call, plus a per-minute rate of 89 cents. With the growth of wireless and prepaid cards, fewer people are using these caller cards. |
| 4 | 4813 | 2002 | As the telecommunications industry struggles to attract customers amid federal investigations, customer complaints and declining profits, both long-distance and wireless carriers are at risk. Sprint's long-distance plan features high-rates and additional charges on supposedly low rates. The SprintNickelAnyTime can rise to 10 cents a minute and includes an $8.95 monthly fee. |
| 5 | 4813 | 2003 | While inflation is officially low, Americans are met with a multitude of additional charges that bring up the true cost of purchases. AT&T could bring in as much as $475 million by charging its long-distance customers a new 99 cents monthly "regulatory assessment fee." |
| 6 | 4899 | 2004 | BellSouth, one of the nation's biggest phone companies, this week will start levying a "regulatory cost recovery fee" of $2.97 a month for new DSL customers. The company advertises that service for $29.95 a month, about 10% less than what it will really cost after the new fee is added. |
| 7 | 5311 | 2006 | Federated Department Stores is charging some suppliers a 5% "new-store allowance" on merchandise sold in about 400 new stores including Kaufmann's, Marshall Fields and Fields which are being converted into Macy's or Bloomingdale' stores. These fees are typically charged when retailers open a new store, not those being converted. |
| 8 | 6021 | 1985 | According to a recent nationwide survey, service charges have climbed 104 percent in four years, bringing the annual cost of banking for the average household to $187.59. |
| 9 | 6021 | 1985 | Several major savings institutions – including Glendale, California Federal and Crocker National – have imposed fees ranging from $25 to $150 on auto loans in addition to the standard interest charges. |
| 10 | 6282 | 2005 | Hedge fund investors might be hit with hidden fees, beyond the 1% to 2% management fees, plus 20% of profits. These fees may include administration and professional fees, including audits, maintenance and trader bonuses, adding up to 3.5% of assets per year. Often, fees that were once included with the management fee are billed as add-ons, without reducing the original management fees. Deciphering these fees is difficult for prospective investors as certain costs are billed under the ambiguous "other." |
| 11 | 6300 | 2005 | Some of the larger agents are now responding to the lower commissions paid them by the insurance carriers by imposing fees on business they write for the carriers. One large agency in England has begun charging a 1% fee for any business it writes for carriers in the United States. |
| 12 | 6531 | 1999 | Some real-estate brokerages are adding extra fees for routine services such as filing papers. |
| 13 | 7011 | 1998 | Patriot American Hospitality's Grand Bay Hotels & Resorts instituted a chainwide surcharge of between $9 and $20 a day for automatic gratuities. |
| 14 | 7011 | 2004 | Along with rising occupancy levels, hotels' surcharges are back in force. The surcharge rise is causing a host of inventive charges, such as minibar restocking fees, meeting room reset fees, and automatic tips. Fees now can account for an extra $7 to $10 when a traveler checks out of a hotel. That money is highly profitable to the hotels because in most cases they already are providing the services–whether it's a gym or a business center. One reason for the hotel industry's renewed interest in surcharges is the growing popularity of cell phones: many travelers have free long-distance plans, which they use when on the road. |
| 15 | 7371 | 2000 | PhotoWorks.com costs $11 for prints by mail plus photos online. Retail photofinishers offer the upload option, most of them through Kodak's PhotoNet service, also available as "you’ve got pictures" from America Online. The photo retailer at Rite Aid exacts an extra $6.99 for scanning and uploading photos, something all other online companies do for free. |
| 16 | 7375 | 1990 | Prodigy charges $9.95 per month for subscription. Prodigy takes a commission of 10% or more for every item subscribers order. |
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