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 COMPONENT: ELIMINATE FORMS OF DISCOUNT
| No. | SIC | Year | Notes |
| 1 | 1011 | 2005 | Shortly after the world's top three iron-ore producers wrested a 71.5% price increase from their biggest customers, market watchers are warning that prices could peak and a product glut may be on the horizon. Higher-grade pellets are up 87% from last years prices. Typically, iron-ore prices fluctuate less than 10% a year. The world's three largest firms, Companhia Vale do Rio Doce, Rio Tinto and BHP Billiton are ramping up production to take advantage of the pricing and smaller miners are following suit which may create oversupply. |
| 2 | 2911 | 1990 | The oil companies funneled gasoline to their company-owned stations and dealers at prices below the wholesale price they charged independents. For years, wholesale prices for small independent stations were the industry's lowest, averaging 1-4 cents a gallon below what brand-name dealers paid. Then overnight they became the highest, leap-frogging 5 to 10 cents unbranded gasoline. Within a week of Persian Gulf hostilities, it went from the industry's cheapest to its most expensive. About 15% of the nation's gas stations are currently company owned and operated. But they may pump 33% of the nation's gasolines. |
| 3 | 3721 | 1990 | The mkt. has become so strong that Airbus has shaken off its traditional price discounting and has been slowly pushing up prices on its aircraft. |
| 4 | 4213 | 1997 | Old Dominion's efforts to cull unattractive freight from its base of business have resulted in improved pricing and load profitability. |
| 5 | 4512 | 2003 | Major carriers have long depended on full-fare business passengers to offset their competitively priced low fares. But fares in general have been trending down for three years. During the dot-com frenzy, airlines could name their premium fare price-and did. Continental offered a $1,100 one way walk up fare from Cleveland to L.A. and had lots of takers. |
| 6 | 4512 | 2006 | After nearly two years of increases, Delta Air Lines cut fares on 10,000 domestic routes, a move quickly matched and even exceeded by rivals. However, the cuts excluded popular holiday flights. Analysts estimate that the average fare was reduced by $281. |
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