Raise Price to Improve Revenues and Margins

CHOICE 1 OBJECTIVE: RAISE PRICE, RECOVER THE INCREASED COST OF CURRENT PERFORMANCE

CHOICE 2 ISOLATE SEGMENTS: SEGMENTS SERVED BY COMPETITORS LIKELY TO FOLLOW THE PRICE INCREASE

CHOICE 3 COMPONENT: CHANGE THE LIST PRICE ON MAIN PRODUCT

No.	SIC	Year	Notes
1	2000	2005	Kraft and Hershey announced price hikes of 1 to 4% on packaged food items. This move could signal a second round of price increases in just two years. These increases are attributed to raw food prices and fuel prices which makes transport more expensive.
2	2015	1087	Chickens are selling for less today than they did in 1923. Retail broiler prices rose from an average 59.5 cents a pound in 1950 to 83.5 cents last year. Average beef prices during the same period rose from 76.4 cents a pound to $2.31.
3	2082	1998	Anheuser-Busch is planning its first national-scale beer-price increases in nearly two years. The retail price of a case of beer should go up 2% to 4%.
4	2111	2002	As lawsuits and state settlements burden tobacco companies with large debts, the companies passed the cost on to smokers, raising wholesale list prices 49% in a single year. They kept boosting prices to ensure a profit, causing many customers to give up an increasingly expensive habit.
5	2621	1990	Stone raising newsprint prices 5% or $35/metric ton. But says that even after the increase, actual selling prices after discounts will still be below 1988 levels. Industry people say standard discounts from list price now range from 15-18%.
6	2840	1998	Procter & Gamble said it will raise list prices 4-7% on tissue and paper-towel products. Company's first price rise for the category in at least 2 years.
7	3011	2006	Tire makers have typically been willing to accept lower profit margins on sales to original-equipment manufacturers as they make a premium on sales to consumers. Despite this, Michelin SA has attempted to raise prices by 6 to 8% to counter rising energy and raw-material costs. It is unusual for a tire maker to make this public news as it applies only to original-equipment manufacturers. The manufacturer hopes to encourage rivals Goodyear Tire and Bridgestone, who are both suffering from the same market conditions, to raise their prices.
8	3312	2009	Many stainless steel makers, facing high operating costs, are increasing prices despite weak demand. 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. Changes in logistics, along with reduced overtime and shifts, should help cut costs by 25% from last year, a significant reduction but not enough to offset the 40% to 50% drop in sales.
9	3400	1989	Prices of Korean flatware rose because Japanese steelmakers stopped selling excess stainless at bargain prices to Korea.
10	3585	1996	York was able to realize price increases of 1%-2% in 1995 vs. 1994 and an additional 1% in 1996.
11	3721	1998	Boeing is raising prices 5%, deciding that "profits are more important than market share."
12	3861	1989	Kodak has discounted heavily, sometimes selling film rolls at half the listed price. Kodak is now raising its list prices 5.5-9%, effective Dec. 23. This year's increase is several percentage points higher than last year's increase.
13	4213	2001	In response to lowered demand, Roadway Corp. and Consolidated Freightways were considering rate hikes for less-than-truckload customers. Yellow Corp. introduced a 4.9% hike.
14	4513	2003	Airborne and others have begun raising prices 3% for domestic services and 4% for international to make up for slower business.
15	5331	2008	Despite slowing economic growth, soaring commodities prices this year have forced manufacturers around the world to hike the prices they charge retailers, which in turn have raised their prices on consumers. Costco receives about 3/4ths of its operating profits from membership fees. If prices go too high, members might let their subscription expire and profits would suffer. Costco can't raise prices as easily as its rivals can.
16	6300	1986	A year ago liability insurance premiums doubled or tripled – insurance industry blamed the multi-million $ awards to plaintiffs, economists faulted the carriers for engaging in cut-throat competition in the 80s until losses caused price increases.
17	6321	2003	Commercial health insurance pricing trends remain steady with about 10% increases annually, in line with medical-cost increases.
18	7832	2000	Usually when supply exceeds demand, prices come down, but that hasn't played out in the movie business. In fact, average ticket prices have risen 21 percent since 1994, boosting total U.S. box office revenues by 39 percent. But the revenues didn't come close to covering the exorbitant cost of the new multiplexes. Theater owners were replacing screens that cost $250,000 with ones that cost $1 million to $1.5 million. Movie-goers flocked to the new cinemas, but abandoned older ones. Some theaters built three to four years ago are already obsolete. Some multiplexes were financed by highly leveraged real estate investment trusts. Some chains were acquired in leveraged buyouts, then took on even more debt.
19	7996	2004	In an effort to boost slumping attendance figures, theme parks are rolling out or expanding their ticket discounting programs. Many parks this summer are aggressively moving into online sales and offering special prices to people who book on the Web and then print out their tickets at home. Busch Gardens even lets online customers buy tickets on an installment plan. Complicating the equation, the rash of discounts comes as many parks have raised their gate prices this year. Universal Studios, for instance, raised one-day admission prices not once, but twice this year at both its Orlando, Fla., and Hollywood, Calif., locations. As a result, adult admission now costs $54.75 at Orlando, and $49.75 in Hollywood – a 5% jump from last year.
20	8111	1987	Law firms say they are raising rates partly to cover the cost of vastly higher salaries and sign-up bonuses for new recruits, who now command as much as $90,000 a year to start.

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