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: ADD AN EXTRA FEE ON TOP OF VARIABLE CHARGE

No. SIC Year Notes
1 3312 Steel prices are expected to keep surging as steel customers say they expect prices for hot-rolled steel to hit $500 to $600 a ton next month. Some contend steelmakers are taking advantage of the situation. US Steel no longer publishes surcharges but has alerted customers by phone the day increases took effect. Not all customers are acquiescing.
2 3711 1990 The new Mercedes convertible two-seater is priced at $83,500. Since there's so much demand and a wait to get the cars, the few cars that are immediately available usually command a premium of $15,000 or more. It's quiet, safe and powerful.
3 3751 1997 Harley-Davidson bikes are so popular that some dealers have sold the bikes at a $500-to-$1,000 premium over the manufacturer's suggested retail price.
4 4481 2006 After years of caution, many companies are moving to increase prices for common consumer goods in 2006. Carnival Corp is imposing a surcharge of about $12.50 to $18.75 to its European cruises and will expand the charges to the States if European customers don't balk.
5 4499 1999 In making its most recent trade announcement, the Transpacific Stabilization Agreement said it plans to boost rates to the U.S. from Asia by $400 a 40-foot container. The group said it also will seek to apply a $300 a container surcharge during the peaking shipping season from July 1 through Oct, 31, 2000. Companies on average pay about $3,500 to ship a container of cargo to the U.S. from Asia.
6 4512 2008 Virgin America is revamping its frequent flier program. It gives frequent flier points based on ticket prices, not mileage. Also, instead of set mileage redemption prices at say 25,000 or 50,000 miles, the price in points fluctuates just as the cash price does. One point is usually more than two cents. For example, a $429 ticket priced at 18,976 points (2.26 cents per point).
7 4833 1998 NBC is asking $2 million for commercials on the final "Seinfeld" episode. Although many are turning them down, the actual predicted price of about $1.5 million is still much more than the average $600,000 for a regular "Seinfeld" spot.
8 7011 2004 Along with rising occupancy levels, hotels' surcharges are back in force. The surcharge rise is causing a host of inventive charges, such as minibar restocking fees, meeting room reset fees, and automatic tips. Fees now can account for an extra $7 to $10 when a traveler checks out of a hotel. That money is highly profitable to the hotels because in most cases they already are providing the services–whether it's a gym or a business center. One reason for the hotel industry's renewed interest in surcharges is the growing popularity of cell phones: many travelers have free long-distance plans, which they use when on the road.
9 9200 2007 Some regions have experimented with allowing drivers pay to use bus, carpool and motorcycle lanes. Pricing varies upon levels of congestion. However, the lanes have been criticized as "Lexus lanes" that allow wealthy drivers to buy special treatment on highways built with money provided by all taxpayers.
10 9200 2007 High-occupancy toll lanes use sensors in the pavement that track the number of cars and their speed. When traffic slows, computers increase the toll to discourage other cars from entering the lanes. Toll amounts are displayed on digital signs and debited from an electronic smart card inside the vehicle. Many congested cities are planning to roll out HOT lanes in the future.
11 9311 2002 In New York, where the Port Authority imposed a greater toll for drivers using the bridges and tunnels into Manhattan during rush hour, drivers using E-ZPass pay $5 at peak times and $4 at all other times, while those paying cash always pay $6. A higher peak toll could reduce traffic and send more drivers scurrying to commuter rail or subway trains.
12 9311 2002 In 1975, Singapore started charging for access at peak times, a move that cut downtown traffic by 40%. North of Paris, highway A1 sports a higher toll on Sunday evenings as Parisians stream back from their weekend homes. London is now starting a daily licensing fee for motorists in its crowded central city.

<<Return to Choice 3