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 FUNCTION
CHOICE 3 COMPONENT: CHANGE ANCILLARY OR SUPPORT PRODUCT/IMPROVE EXPERIENCE/INCREASE SECURITY
| No. | SIC | Year | Notes |
| 1 | 3599 | 2007 | Intuitive Surgical's S-series robotic surgical system has generated enormous profits for the company. Intuitive has raised prices on its newest models and benefits from sales of replacement parts. Operating on a razor blade model, each system has three or four arms, the tools attached to each arm need to be replaced after every 10 procedures and replacements cost $1,500 to $2,000 for existing customers and $2,000 to $2,500 for new customers. |
| 2 | 3621 | 1995 | Franklin made a smart move in the mid-1980's by selling its commodity fractional electric motor business and concentrating on engineered specialty motor products. Franklin concentrates on applications where customer service, unique features and small- to moderate-size production runs enable it to earn reasonable margins. |
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