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 MAKING HIGHER THAN AVERAGE USE OF CAPACITY

CHOICE 3 COMPONENT: CHANGE THE LIST PRICE

No. SIC Year Notes
1 4412 1992 Shipping companies hope to boost rates selectively on some low-rated commodities that are subsidized by other commodities paying higher rates.
2 4512 2001 Corporations are rejecting high fares for business travel as the economy remains depressed. In a two year period ending in 2002 airlines have raised business fares by 15% while the average ticket price has declined slightly. Leisure travelers who are more price sensitive get lower rates while business travelers are often gouged.
3 5812 2009 Starbucks Corp. said it is ready to fight back against rivals' claims that the company's coffee drinks are expensive and the notion it is losing share to cheaper coffee makers. As it reported a 77% drop in quarterly profit, the company also said it will adjust its pricing in some markets, raising prices of some of the more complicated drinks while lowering those on basic drinks. For example, Starbucks will offer a "grande" size iced coffee for less than $2, shaving as much as 45 cents off the price, depending on the market.

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