Raise Price to Improve Revenues and Margins
CHOICE 1 OBJECTIVE: RAISE PRICE, RECOVER THE INCREASED COST OF CURRENT PERFORMANCE
CHOICE 2 ISOLATE SEGMENTS: CUSTOMER SEGMENTS PURCHASING DURING A PERIOD OF UNBALANCED SUPPLY AND DEMAND
CHOICE 3 COMPONENT: CHANGE THE LIST PRICE
| No. | SIC | Year | Notes |
| 1 | 2082 | 1991 | AB pricing strategy was to raise prices enough to cover cost increases, but not so much that they allowed competitors to make significant margin gains. Since AB's costs were the lowest in the industry, a great deal of pressure was placed on competing brewers' margins. AB was very careful not to raise a price umbrella. As a result, margins of the smaller competitors suffered since they did not have a cost structure as low as AB's. Its size and national coverage has allowed it to vary prices for different customers in different regions to hold off regional competition. |
| 2 | 3312 | 2002 | Steelmakers' prices are rising with new contracts with automakers. The increases range from 5% to 10% and are the first such increases in at least seven years. Automakers rely on a small number of specialized domestic producers for steel, a group that has seen members go out of business. Chrysler rationalized the hike, saying that they were willing to pay for it in favor of stable prices. |
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