Raise Price to Improve Revenues and Margins

CHOICE 1 OBJECTIVE: RAISE PRICE WITH NO CHANGE IN PERFORMANCE AND COST

CHOICE 2 ISOLATE SEGMENTS: CUSTOMER SEGMENTS MAKING HIGHER THAN AVERAGE USE OF CAPACITY

CHOICE 3 COMPONENT: CHANGE THE BASIS OF CHARGE

No. SIC Year Notes
1 4513 1996 UPS's new rate structure will tie the company's prices more tightly to the actual costs of delivery. UPS plans to charge air express delivery customers based on distance as well as weight. This means that effective February 3, prices for UPS next day air will drop by as much as 40% for short distances and increase by as much as 28% for longer distances.
2 4812 2006 As cellular service providers roll out Internet-accessible services and devices, consumers are finding that their access may be limited. Both Sprint and Cingular have begun to charge according to the amount of data transfer, rather than a fixed fee.

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