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:
Set or raise minimum purchase requirements
| No. | SIC | Year | Notes |
| 1 | 2840 | 1993 | P&G, seeking to cut its distribution costs, is considering requiring retailers to buy its products only in large quantities, effectively forcing those that need smaller amounts to pay a premium to buy through wholesalers. |
| 2 | 4311 | 1999 | E-stamp adds a 10% "convenience fee" to your purchases, with a minimum fee of $4.95 and a maximum of $24.95 per download. So it pays to a buy at least $50 worth at a time. |
| 3 | 6211 | 2002 | Beginning June 1, Schwab customers will see the minimum cost of a broker-assisted trade jump to $54.95 from $39. Investors will continue to pay $29.95 for an online trade of as many as 1,000 shares plus a $3 handling fee. |
| 4 | 7514 | 2008 | Hoping to keep wallet-conscious road trippers behind the wheel, car-rental agencies are offering a series of gas discounts that allow customers to snag a tank for well below the national average of $3.94 a gallon. Many of the major car-rental agencies offer discounts of as much as 25 cents per gallon to renters who opt to prepay for half or a full tank of gas when they pick up their car. The catch is that there is no refund for leftover fuel, so rental agencies bank on you returning the car with at least some fuel in the tank. Also, if you don't prepay you will not only get hit with higher gas prices but also a convenience surcharge that can double the per-gallon price. |
| 5 | 8721 | 1989 | Paychex had a minimum charge of $5 per pay period with the total fee directly proportional to the number of employees. If a company would have 17 employees the cost to prepare pay checks, tax returns and accounting records is $23 per pay period, less than $1.50 per employee. This saved the small business customers a good deal of effort and time. The problem this creates, though, is that with such low prices, Paychex needs big volume to make real money. |
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