Raise Price to Improve Revenues and Margins

CHOICE 1 OBJECTIVE: RAISE PRICE, RAISE PERFORMANCE AND COST BY SMALLER AMOUNT

CHOICE 2 ISOLATE SEGMENTS: CUSTOMER SEGMENTS WITH HIGH SERVICING COSTS

CHOICE 3 COMPONENT: ELIMINATE FORMS OF DISCOUNT

No. SIC Year Notes
1 4813 1995 New MCI Friends & Family plan offers a 25% discount after you spend just $10 a month. The discount increases to 30% when your monthly tab hits $75. AT&T's True USA plan also begins at $10 level, but only offers 10% off at that point. The discount only rises to 20% after you spend $25. AT&T also gives 30% at $75.
2 4911 1995 Although the national price of power now averages 7 cents per kilowatt-hour, the span of pricing is great: Some big corporate customers may pay less than 2 cents, while everyday, home consumers can shell out more than 16 cents on a hot day.

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