Raise Prices to Improve Revenues and Margins
CHOICE 1 OBJECTIVE: RAISE PRICE WITH NO CHANGE IN PERFORMANCE AND COST
CHOICE 2 ISOLATE SEGMENTS: SEGMENTS SERVED BY COMPETITORS LIKELY TO FOLLOW THE PRICE INCREASE
CHOICE 3 COMPONENT: ELIMINATE FORMS OF DISCOUNT
| No. | SIC | Year | Notes |
| 1 | 3711 | 1989 | Ford is also eliminating discount-option packages. |
| 2 | 6500 | 2003 | Online real estate brokers, who once promised sizable discounts on the standard commission for selling houses, have quietly raised their rates. ERealty Inc., a pioneering online broker, has dropped from its Web site an offer to sell homes for a 4.5% commission, well below the 6% commission charged by many traditional brokers. The company also stopped giving buyers a rebate equal to 1% of the purchase price. The move comes after another online broker, zipRealty Inc. stopped promising 4.5% commissions. ERealty's fee increases came after the company concluded that its emphasis on discounting was scaring away some potential customers who wants lots of personal service. ERealty says the new fees make it clear that it's a full service broker. |
<<Return to Choice 3