Raise Price to Improve Revenues and Margins


D. Segments of customers where competitors are likely to be unwilling to counter the company's change in Value

Customer segments making higher-than-average use of capacity

No. SIC Year Notes
1 3711 1993 Big Three auto makers raised their prices to daily rental companies as much as 30% for the 1993 model, and by a similar amount for the 1994 model year.
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 4812 1997 Pacific Bell offers PCS (Personal Communications Services). It's $19.95 a month, with 10 free minutes anywhere in N. CA. Additional minutes within N. CA cost 40 cents each. Customers also get 200 minutes of free airtime per month to call their homes.
4 7996 2005 Many amusement parks are allowing visitors to pay extra to avoid long lines for rides and attractions. The idea was first introduced with the Walt Disney FastPass which had visitors make an appointment for a ride. This service was available without charge as it encouraged greater gift shop and food sales. Universal Studios and Legoland California have both introduced systems in which visitors which pay a premium to skip lines and enter through separate entrances, largely to avoid provoking the ire of those waiting in the regular line. Both services cost nearly double the traditional fee.
5 8099 2002 American Medical, a health insurance company which provides coverage to individuals, is using the practice of reunderwriting to boost profits. Under this policy, medical records are evaluated each year and subscribers are divided into preferred (few claims), standard, which will have a 5% increase, and substandard, those facing chronic health problems. Rates can rise 37% a year for this group.

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