Raise Price 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: CHANGE THE BASIS OF 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. Cingular offers pre-paid plans in addition to traditional wireless services but their pricing system is based on a $1 daily rate, and varying minute rates, making it confusing for those trying to keep track of their minutes. |
| 2 | 4812 | 2001 | While prepay rates have fallen in recent months, carriers still charge more per minute for the service because customers who use the service tend to spend less and dump it after only a few months. The average price for prepaid calls is about 30 cents a minute, down from 45 cents in 1999 but still twice as much as what consumers pay under open-ended usage plans. AT&T, for instance, charges as much as 35 cents a minute for a prepaid local call and as much as 65 cents a minute for long distance. |
| 3 | 7375 | 2006 | Boingo Wireless Internet service offers a variety of usage plans. Boingo Pro costs $24.95 a month for ten Connect Days plus $4.95 for each extra Connect Day. Boingo Unlimited offers unlimited usage for $74.95 a month. Boingo As-You-Go costs $7.95 per Connect Day (24 hours of unlimited use at a time). |
| 4 | 7375 | 2000 | Dialog had been pricing very low for search and very high for downloaded documents. So, customers were using its inexpensive search engine to find only citations for documents that they then downloaded for free off the internet. The company then changed it pricing to charge more for search and less for downloaded articles. |
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