Raise Prices 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 RELIABILITY
CHOICE 3 COMPONENT: CHANGE THE BENEFIT PACKAGE
| No. | SIC | Year | Notes |
| 1 | 2754 | 1996 | Customers will move for a 2 to 3% difference in price, whereas five years ago the difference in price had to be 5 to 7%. At equal prices, customers prefer RRD. RRD has been sticky on price, so customers reduce their use of RRD in the relationship but keep them there for back-up in case their primary supplier runs into trouble. |
| 2 | 2840 | 1993 | There are some goods shoppers are unwilling to trade down to private-labels: baby food, deodorant, face creams, soaps and shaving creams. |
| 3 | 3292 | 1993 | In an evaluation of an industry leader, consultants found that the company could raise prices and continue modest share gains. The company should not gain share on prices but purely on performance. Despite a poor market, the company has gained share and grown volume from both new and existing customers. This gain is a result of the company's outstanding reputation for reliability. |
| 4 | 3571 | 1987 | IBM's new top-of-the-line PC is priced 25% higher than a similar Compaq. |
| 5 | 3841 | 1995 | B&L's Sensitive Eyes Saline Solution is the exact same product as Sensitive Eyes Drops, except in a larger package. The solution is priced at $0.23 an ounce, and drops are $5.65 an ounce. Add price point. |
| 6 | 4213 | 2003 | In order to attract business when Knight penetrates a new market, it charges rates at or below the market average. Once it gains credibility it raises rates at or above what the market charges. This has helped Knight gain a 25% annual sales growth for the past 5 years. |
| 7 | 7372 | 1986 | The clones haven't forced down prices, in part, because buyers worry that the clones won't work as well as the original programs. Also, reviewers have identified many differences between clones and originals. |
| 8 | 7372 | 2004 | Symantec is expected to hike the renewal price of an annual consumer anti-virus subscription from near $20 to around $25 this year. |
| 9 | 7514 | 1992 | Alamo announced a three-tier pricing structure, with lower nationwide rental rates of $15 a day for economy cars, $19 for midsize autos, and $29 for Cadillacs. Alamo said the Cadillac rate represented as much as a 55% price cut from its previous rates. Hertz responded by cutting its rate on subcompact cars to $14.99 from $18.99 a day. It's standing firm on rates for midsize or luxury cars. |
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