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 RELIABILITY
CHOICE 3 COMPONENT: CHANGE THE LIST PRICE
No. | SIC | Year | Notes |
1 | 2111 | 2009 | Altria, maker of Marlboro cigarettes, is passing the federal excise tax onto consumers, even as it adjusts relative pricing to reduce the risk of consumers trading down. A pack of Marlboros now costs about 40% more than a generic alternative, compared with a roughly 70% premium a few years ago. |
2 | 2869 | 1991 | NutraSweet had stiff pricing, high premium w/ patent. Still plans on charging 10% more than other suppliers, based on brand strength. |
3 | 2952 | 1995 | In the past, industry competition for market share has depressed prices, making it difficult for ELK to raise its prices. In 1995, demand is strong. For ELK, whose products are traditionally priced about 4%-7% above the competition, this means additional flexibility in raising prices. |
4 | 4813 | 1996 | AT&T is increasing rates 5.9% on interstate calls, 5% on calling-card calls and 2.6% on operator-assisted calls. The increases are AT&T's biggest boost in nearly 3 years. Overall, AT&T has raised its basic rates by 22% since January 1994. |
5 | 6300 | 2005 | If there were five carriers quoting on a piece of business, the price spread could easily be 15% in either direction. That means if the median price were 100, the high price might be 115, the low price might be 85. As a general rule, the winning company must be within 10% of the best price to get the business. |
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