Raise Price to Improve Revenues and Margins

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

CHOICE 2 ISOLATE SEGMENTS: DUE TO A UNIQUE RELIABILITY

CHOICE 3 COMPONENT: CHANGE MAIN PRODUCT/REDUCED RESOURCES REQUIRED/MONEY

No. SIC Year Notes
1 2043 1996 Post is positioning itself as a value provider. Its brands will be priced at about $3 a box. Private-label brands run $2 to $2.49 a box.
2 3523 1993 JI Case is discounting 5-8% off the Standard Leader John Deere product. JI Case's CEO said in a 1989 article that "…(my) objective is to produce such a quality product that customers and dealers won't flinch when I raise prices on new models or refuse to sell my machines for less than the comparable John Deere models " According to a John Deere dealer, JI Case continues to discount today. Weak competitors such as Masey-Ferguson are discounting heavily, up to 15% off the John Deere price. In spite of the lower prices, Massey-Ferguson is still losing share.
3 3541 1996 A Kennametal Full Service Supply (FSS) contract guarantees to the customer improved just-in-time inventory control with computerized processing, superior product offerings, and lower procurement costs. In addition, Kennametal offers on-site engineering assistance that provides additional tooling knowledge to decrease production-line down time and to improve tool usage for increased performance. This helps to differentiate Kennametal from the competition and is the driver for a higher Price.
4 6371 1988 Atlanta/Sosnoff Capital has average fees of .75% (vs. 0.3% institutional avg.) because of good past performance.

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