Raise Price to Improve Revenues and Margins

CHOICE 1: SELECT THE OBJECTIVE OF THE PRICE INCREASE

C.
Raise price, raise Performance and Cost by smaller amount

No.	SIC	Year	Notes
1	2711	2003	Abitibi and Bowater combined have 55% market share. The next biggest competitor is Kruger, who has only 7% share. So the two biggest companies keep the largest publishers and then allow the smaller competitors in the marketplace to keep a full order book at some price lower than the leaders. The follower companies gradually allow their price to creep up closer to the leaders. These smaller competitors offer a discount of as much as $50 a ton as the price goes up (this is $50 on about $600 a ton base price) and then quickly allow the price to come within $10 or $15 a ton below the price of Abitibi and Bowater. Even then, a small difference can still move market share.
2	3639	1999	With a price tag of around $1,500, it [a Kirby vacuum] also costs more than four times what other top-of-the-line vacuum cleaners do.
3	4841	2009	Basic cable costs have climbed about 20% since 2003, to about $44.28 a month. But factor in Internet access, extra channels like HBO or regional sports, and a digital video recorder, and the average monthly bill is more like $98, up 63% since 2003.
4	5812	1998	A possible competition between Kraft and Starbucks on store shelves wasn't seen because Maxwell House and Starbucks each has a distinct audience. A 13-ounce can of Maxwell House sells for about $2 to $2.50. In supermarkets on the West Coast, a 12-ounce bag of Starbucks coffee sells for $7.45.
5	7375	2004	AOL had been selling an antiviral tool from McAfee Inc. for an extra $2.95 a month, and had signed up some two million of its users. MacAfee sells the same software to consumers on its Web site for $39.99 a year.

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