Raise Price to Improve Revenues and Margins
CHOICE 1 OBJECTIVE: RAISE PRICE WITH NO CHANGE IN PERFORMANCE AND COST
CHOICE 2 ISOLATE SEGMENTS: DUE TO A UNIQUE CONVENIENCE
CHOICE 3 COMPONENT: ELIMINATE FORMS OF DISCOUNT
No. | SIC | Year | Notes |
1 | 4512 | 1986 | Once a big carrier becomes firmly entrenched in a market, profits and ticket prices appear to rise. USAir has nearly 80% share of the Pittsburgh market, and this has helped make it one of the industry's most profitable carriers. |
2 | 4512 | 1987 | For people flying from Detroit to Boston, cheapest unrestricted fare on direct flights has soared to $260 from $89 one-way in the past 12 months. The reason: Because of acquisitions, only Northwest instead of four carriers flies the route. |
3 | 4812 | 2008 | Verizon's plan has historically sold consumers big "buckets" of monthly minutes for a set price. Part of the industry's affinity for this policy is due to the fees companies take in from customers who exceed their monthly allotments. Those "overage" charges generate billions in profit each year. |
4 | 5311 | 1989 | Price-matching policies actually give merchants "a way to keep prices a little higher for the loyal customers while giving a lower price" to new customers (comparison shoppers) the store is trying to attract. |
5 | 7011 | 1994 | Many hotels don't discount night, evening or weekend calls for guests the way long-distance companies do, and most don't tell the people. It's not really a price rise, but amounts to one since customers expect a price reduction. |
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