Raise Price to Improve Revenues and Margins
CHOICE 3: USE THE COMPONENTS OF PRICE TO FURTHER CONTROL THE EXTENT OF THE HIGHER PRICE
A. Change the Benefit Package
Change Function and Price together
| No. | SIC | Year | Notes |
| 1 | 2711 | 2002 | Pearson's Financial Times sells headline updates to Europeans with mobile phones and charges $172 an hour for access to its staff at the "Ask.FT" research service. |
| 2 | 3751 | 1999 | In 1999, Harley-Davidson began selling custom bikes packed with accessories priced at $9,000 more than the standard model. The profit margin on these $25,000 bikes is likely 40%, four points higher than standard models. |
| 3 | 4813 | 2004 | AT&T, whose CallVantage offering costs about $5 more a month for unlimited calling than most other Internet plans, hopes to attract customers with zippier features and better quality. |
| 4 | 6141 | 1998 | Providian Financial is building its secured card business, a PL product, by requiring people who have no qualifications for Visa or MC elsewhere to deposit $750 in a savings account in return for a card with a $750 limit. The customer is paid 2% on the deposit and pays nearly 21% on the card balance, as well as a one-time $25 enrollment fee and an annual fee of $39. |
| 5 | 7841 | 2009 | Netflix plans to raise prices for customers who watch movies on Blu-ray discs through the online-rental service. It will start charging $20.99 a month for customers who watch Blu-ray movies through a popular Netflix plan that lets them have three movies at a time. That's $4 (or 24%) more than the price for a rental plan for three ordinary DVDs. Netflix will also increase fees for customers who opt for other Blu-ray rental plans. Previously, Netflix charged a flat $1 monthly premium for members who opted to receive Blu-ray movies. The rates are to cover the additional costs of purchasing Blu-ray discs, which can run 30% more than the cost of comparable DVDs. |
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