Raise Price to Improve Revenues and Margins
CHOICE 1 OBJECTIVE: RAISE PRICE, RAISE PERFORMANCE AND COST BY SMALLER AMOUNT
CHOICE 2 ISOLATE SEGMENTS: DUE TO A UNIQUE CONVENIENCE
CHOICE 3 COMPONENT: CHANGE FUNCTION AND PRICE TOGETHER
| No. | SIC | Year | Notes |
| 1 | 0 | 2002 | Software producers are particularly dependent on consumption as they often make more money selling upgrades than the initial application. Customers who use the product are likely to continue subscribing and are discouraged from making the transition to another product. Revenue is lost when customers never use the product they bought. |
| 2 | 2011 | 1987 | Beef, pork and veal packers moving to catch up with the chicken industry with branded and partially prepared products. Wilson rolls out Tender Cuts, pre-packaged, boneless fresh pork treated to be more juicy. |
| 3 | 3571 | 1986 | DEC to sell its PC model for about $4,300, the IBM PC-AT (similar speed) available for about $3,000. But DEC's compatible with its VAX machines. |
| 4 | 4481 | 2001 | One consumer thought she scored a bargain, paying about $880 per person for a balcony stateroom on an eight-day Caribbean cruise during Thanksgiving weekend. Then her family spotted the photographers, a new specialty restaurant, bingo and other extra-cost attractions. By the time they returned home, they had dropped $1,200 beyond the price of their four tickets. |
| 5 | 4512 | 2003 | The service didn't allow passengers to stay in close contact with their offices by sending and receiving e-mails. Adding two-way e-mail service will enable passengers to plug laptops into jacks on the Verizon Airfone telephone handsets on the back of seats and use their standard dial-up procedures to link to JetConnect. JetConnect with e-mail will cost a United flier $15.98 per flight, plus 10 cents per kilobyte of data over 2 kilobytes. A single kilobyte contains about one-half to two thirds of a page of text. The service also allows travelers to send attachments. |
| 6 | 4512 | 2006 | In order to generate consistent revenue and foster loyalty, many North American airlines are considering prepaid pass programs. United's program, currently limited to business travelers, is good for 25,000 miles flown within one year for $11,750. Pass holders get airport club privileges and perks. |
| 7 | 4512 | 2006 | As part of an attempt to increase revenues, many airlines have begun charging for food and drinks, skycap services and phone reservations. The newest trend is seating. Northwest Airlines introduced its "Choice Select" program in which fliers can reserve seats in the exit and bulkhead for an extra $15 per ticket. The seats will be offered first to Elite members shortly before departure. |
| 8 | 4812 | 1996 | Bell venture's new "Talk Along" plan cuts the customer segment between boroughs. Only $14.99 a month, plus 49 cents a minute during peak hours, when all the calls are made from one designated borough. Outside the borough, the rate jumps to 99 cents a minute. |
| 9 | 4841 | 1997 | The digital tier will cost the consumer an additional $10 per month and will have 12 pay-per-view channels, 12 movie or movieplex channels, and 18 additional basic channels, as well as an electronic program guide. |
| 10 | 4841 | 2009 | Basic cable costs have climbed about 20% since 2003, to about $44.28 a month. But factor in Internet access, extra channels like HBO or regional sports, and a digital video recorder, and the average monthly bill is more like $98, up 63% since 2003. |
| 11 | 5812 | 1992 | Domino's to replace its current pizza next month with a "premium pizza" that has more cheese, toppings and a higher price. Pizza will cost about 7% more. |
| 12 | 6020 | 2001 | Charter One Financial's new policy is targeted at customers who frequently overdraw their account. Charter One generally covers overdrawn checks for customers who have been with the bank at least six months in amounts up to the average balance of the account. The typical charge is $28.50 per occurrence. However, the Ready Cash Checking account cuts the fee to $12 and wipes out previous fees. It also limits the penalty of multiple mistakes in one week. The program has been popular, with 85% of those offered the service accepting. |
| 13 | 6211 | 2000 | E*Trade has taken steps toward some personalized service. For $49.95 a year, clients fill out an online questionnaire and get a personalized report with advice on matters such as asset allocation. |
| 14 | 7375 | 2004 | AOL for broadband is roughly similar to MSN Premium, except it lacks the Outlook connector and free antivirus and photo software. It also has excellent parental controls, and is even more generous in e-mail attachments. But it costs 50% more than MSN Premium. |
| 15 | 7841 | 2002 | Blockbuster has 8000 stores and is testing an instore version of the Netflix service called Freedom Pass. Freedom Pass would allow customers to have 2 or 3 disks out at a time on a subscription basis expected to cost $25 a month. But Freedom Pass does not include delivery or nearly the selection that Netflix has. |
| 16 | 7841 | 2009 | Netflix plans to raise prices for customers who watch movies on Blu-ray discs through the online-rental service. It will start charging $20.99 a month for customers who watch Blu-ray movies through a popular Netflix plan that lets them have three movies at a time. That's $4 (or 24%) more than the price for a rental plan for three ordinary DVDs. Netflix will also increase fees for customers who opt for other Blu-ray rental plans. Previously, Netflix charged a flat $1 monthly premium for members who opted to receive Blu-ray movies. The rates are to cover the additional costs of purchasing Blu-ray discs, which can run 30% more than the cost of comparable DVDs. |
<<Return to Choice 3