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 PURCHASING DURING A PERIOD OF UNBALANCED SUPPLY AND DEMAND

CHOICE 3: CHANGE THE LIST PRICE ON MAIN PRODUCT

No.	SIC	Year	Notes
1	0	1987	The demand for more workers has produced increase in the growth rates of wages. Since 1982, earnings of service workers have risen at an annual rate of 4.7%. In manufacturing, where employment unchanged from 1970, earnings up only 3.3% a year.
2	1011	2006	As talks between steelmakers and iron-ore producers began, analysts feel that prices will increase by 5-10% in 2007 after 2006's 20% increase. Demand for iron-ore is strong and supply is tight, but not excessively so.
3	1311	1998	News of oil producers' cutting output caused oil prices to rise nearly $2 a barrel, to $16.48.
4	1521	2005	Luxury home builder Toll Brothers has profited from the boom in housing sales by boosting prices weekly when good sales are reported. A Florida rococo home has jumped from $1.2 million to $1.4 in just four months, an average boost of $15,000 a week.
5	2671	1987	Plants that make packaging, computer, and copying paper are operating near capacity. Average paper prices rose 12% last year.
6	2834	1989	Earlier this year, world nonfat dry milk prices were temporarily higher than US prices. US cos. & dairy coops rushed to export 40% of annual US production. In recent mos. world dry milk prices have fallen, while US dry milk price has almost tripled.
7	3312	2009	Many stainless steel makers, facing high operating costs, are increasing prices despite weak demand. Universal Stainless & Alloy Products Inc. has boosted prices 5% to 6% twice since the beginning of May. Other producers are following suit. Unlike mill increases announced in recent years, this is obviously not driven by increasing global demand, but rather by fixed costs being proportioned over lower demand. Steel service centers, middlemen who buy from the mills and sell to manufacturers, appear to be paying the higher prices, in part because they think they can pass them on and because they have fewer opportunities to find cheaper alternatives. Service centers have less opportunity to buy lower priced foreign steel due to the tightness of credit and the reluctance to place an offshore order that wouldn't show up in the US for months. McCarty & Sons said that it is paying more for stainless steel and is absorbing the costs because his customers aren't going to pay more.
8	3325	2003	A turning point for the steel industry came in December 2001, when LTV Corp., which had filed for bankruptcy in late 2000, began shutting down. That led to a spike in prices, which was arguably helped by the imposition of tariffs three months later.
9	3571	1988	Industry experts say growth in demand for PCs will moderate this year and manufacturing capacity will increase to meet demand. IBM plans to price its products more aggressively. Prices didn't fall last year because of parts shortages.
10	3842	1992	Since January, when the FDA imposed a moratorium on silicone-gel implants, Mentor and McGhan have imposed 50% hikes on their saline alternatives. And more hikes are coming. Raise price where no competition.
11	4512	2004	In markets with the least competition, which include Boston, Dallas, Minneapolis and Cleveland, major airlines are keeping a tight grip on high fares, even as they continue to slash prices elsewhere to stay competitive.
12	4841	2006	As telephone companies make forays into the television business, cable providers are reducing price increases for many customers. Comcast, the nation's largest operator, has restricted its increase to 4.5% on average, its lowest increase in a decade.
13	4925	2004	Profit potential is highest in California for Valero Energy. California has the tightest refinery capacity and the most stringent clean-fuel regulations in the country. The banning of the anti-smog additive MTBE has created a new challenge for the company. The additive made 11% of the state's gasoline by volume but only half of that volume can be replaced by ethanol, forcing refiners to produce an extra 100,000 bbl. a day of gas to meet demand. Valero handles 17% of the state's demand.
14	5211	1994	Lowe's and Home Depot set to compete in same markets (in past geographically separated). Lowe's and Home Depot are virtually even on price where they compete; however, Lowe's prices are higher by an average of 18% where it doesn't compete with Home Depot.
15	5411	2003	With fruits, vegetables and flowers, seasonal prices can aid the retailer. As the quantity varies throughout the year, customers are never sure if prices are higher because of a shortage or if retailers are charging a premium.
16	5943	1997	Staples has a wide gap between prices for pens and paper in cities where it competes with Office Depot and cities where it doesn't.
17	6531	1999	A few full-service real-estate brokerages have raised their commissions to 7%.
18	7514	1998	In past year, there has been a 7% price increase industrywide for car rental companies.
19	7832	2007	When Paramount Pictures' Dreamgirls premiered, theatres charged $25 a ticket, angering some consumers but boosting sales overall. Some analysts feel that theatres can improve revenues by adopting this model, especially for highly anticipated films. They also advise pricing higher for times of peak demand, like the weekends. To avoid charges of gouging, the theatres could charge discounted rates for screenings of documentaries and other niche films.
20	9311	2002	In New York, where the Port Authority imposed a greater toll for drivers using the bridges and tunnels into Manhattan during rush hour, drivers using E-ZPass pay $5 at peak times and $4 at all other times, while those paying cash always pay $6. A higher peak toll could reduce traffic and send more drivers scurrying to commuter rail or subway trains.

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