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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