Raise Price to Improve Revenues and Margins

CHOICE 2: ISOLATE THE SEGMENTS WHO MUST PAY THE PRICE INCREASE

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

Customer segments served by competitors likely to follow the Price increase

No.	SIC	Year	Notes
1	2621	2003	Bowater is pricing right with Abitibi. As Abitibi raises price, so does Bowater. The company just announced its fourth price increase in the last two years, even in spite of the fact that the demand has not come off the bottom. This is the first time in history that there has been price increases without demand increases.
2	3312	2008	Citing high raw-materials costs, the world's largest steel producer, ArcelorMIttal, sent a letter to US automakers and other US contract consumers saying that it would apply a rare $250-a-ton surcharge to the price negotiated in existing contracts. Contract customers may have no immediate option but to pay up. With price raises from big mining companies, steel companies have had no other choice but to pay higher costs. They have decided to pass along the costs to their customers.
3	4953	2006	The country's three largest garbage haulers have been steadily raising prices despite the slowing economy. The increases are a break from the recent past, and follow a strategy shift in the wake of the industry's 1990s consolidation. Earlier this decade, the nation's garbage giants held prices steady for hauling and disposing trash as they battled for market share. But beginning in 2006 and continuing into 2007 and this year, Waste Management Inc. of Houston, Allied Waste Industries Inc. of Phoenix, and Republic Services Inc. of Fort Lauderdale, Fla., each boosted base prices by more than 3% annually. Prices paid by customers climbed even more because the base price excludes fuel and other surcharges often built into collection agreements.
4	6300	2001	Old Republic began raising rates. It saw the need for a 25% to 30% hike, which the firm thought it could fully put in place that year. It didn’t take long for rivals to follow suit and today the insurance price cycle is finally turning in the industry's favor.
5	7996	1998	In the past month, Disney, Seagram's Universal Studios, and A-B's Sea World have each raised prices more than $2, to identical totals of $44.52. They cite new attractions as the reason for the change.

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