Raise Price to Improve Revenues and Margins
CHOICE 1 OBJECTIVE: RAISE PRICE WITH NO CHANGE IN PERFORMANCE AND COST
CHOICE 2 ISOLATE SEGMENTS: CUSTOMER SEGMENTS WITH HIGH SERVICING COSTS
CHOICE 3 COMPONENT: CHANGE THE BASIS OF CHARGE
| No. | SIC | Year | Notes |
| 1 | 4513 | 2000 | Airborne is also changing its pricing strategy. Previously, Airborne used a "one price fits all" strategy which attracted customers tired of the distance-based prices that FedEx and UPS introduced in 1997. Airborne's universal price was inflexible and it lost business on short-haul shipments and money on longer deliveries. The company plans to use zone-based pricing only in the heavily populated East Coast or places with lots of customers. It will not cut rates because it wants to avoid a price war. |
| 2 | 4812 | 2005 | Prepaid wireless services often price per-minute charges on the basis of how much you purchase initially. TracFone charges 50 cents a minute for those who buy just 40 minutes of airtime to 20 cents a minute for those who buy 400 minutes while Virgin Mobile charges 25 cents per minute for the first 10 minutes and a reduced rate thereafter. |
<<Return to Choice 2