Raise Price to Improve Revenues and Margins
CHOICE 3: USE THE COMPONENTS OF PRICE TO FURTHER CONTROL THE EXTENT OF THE HIGHER PRICE
D. Change the Optional Components of Price:
Eliminate forms of discount
| No. | SIC | Year | Notes |
| 1 | 2834 | 1995 | Drug companies are offering deeper discounts to the powerful health plans that do manage drug costs and usage aggressively. They are eliminating discounts for plans that haven't helped them or are too small. |
| 2 | 4512 | 2000 | In January of 1995, upstart Vanguard Airlines started offering three round-trip flights a day from Kansas City, MO to Dallas. The average one-way fare was $80, compared with $108 offered by chief rival American Airlines. In response, American matched the fares and boosted the number of daily flights on the route. Vanguard was forced to abandon the route and American cut back on flights and raised prices. |
| 3 | 5200 | 2006 | After software calculations by DemandTec, Duane Reade raised prices on cough medicine, realizing that sick people are unlikely to visit multiple stores to get the best price. |
| 4 | 6141 | 2009 | With the economy contracting and fears rising about credit-card delinquencies, banks are trying to cut costs and bolster profits. Many card issuers have been testing shorter expiration periods, higher redemption fees or earnings caps on rewards. J.P. Morgan Chase & Co.'s Chase scaled back the cash-back bonus opportunities on its Freedom card for new customers. |
| 5 | 7372 | 1998 | Previously, if you had 500 people in your marketing department but only 300 using Microsoft Word at a time, you could pay for 300 licenses. Now you have to buy 500. |
<<Return to Directions