Raise Price to Improve Revenues and Margins
CHOICE 3: USE THE COMPONENTS OF PRICE TO FURTHER CONTROL THE EXTENT OF THE HIGHER PRICE
A. Change the Benefit Package
Change Convenience and Price together
| No. | SIC | Year | Notes |
| 1 | 2711 | 2009 | Some small businesses are overhauling their pricing strategies amid the recession and finding new growth through lower offerings and discounts. CouponCabin.com noticed a surge of interest in grocery coupons, after years of declining consumer activity around them in the market. In April, the company launched a grocery-coupon section where visitors could print coupons to use at their local supermarkets. CouponCabin nets a few cents per print from each item's manufacturer. The site has had a 300% increase in visitors during the fourth quarter from a year earlier. |
| 2 | 3290 | 1997 | Owens Corning trying to sell product systems where all products work together. |
| 3 | 4812 | 2004 | The prepaid market is growing fast. It appeals to students and others with little or poor credit history who might have trouble subscribing to monthly billed service. Depending on how much people use their cell phones, prepaid can also be cheaper. |
| 4 | 5961 | 2008 | Airlines have long known that business travelers will pay higher fares in return for maximum booking flexibility, and that leisure travelers are willing to give up some flexibility in order to pay less. The lesson for e-tailers: They, too, can reap rewards from managing demand—in their case, by segmenting customers according to how they want their goods delivered. People who shop online can differ greatly in what they're willing to pay for delivery, and how flexible they can be on the time and date, when they have to be home to receive the package. If e-tailers adjust their fees and delivery options accordingly, they can not only increase revenue but also efficiency. The more delivery time slots one can choose from, the more attractive the service is for the customer, potentially increasing sales. The most obvious tool for segmenting customers is the delivery fee. Discounts should be offered for less-desirable slots to smooth demand. Prices can also vary based on the width of the time slot (hours during which the recipient can receive the shipment), with bigger discounts for wider time slots. |
| 5 | 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). |
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