Raise Price to Improve Revenues and Margins


D. Change the Optional Components of Price:

Set or raise minimum purchase requirements

No. SIC Year Notes
1 2840 1993 P&G, seeking to cut its distribution costs, is considering requiring retailers to buy its products only in large quantities, effectively forcing those that need smaller amounts to pay a premium to buy through wholesalers.
2 4311 1999 E-stamp adds a 10% "convenience fee" to your purchases, with a minimum fee of $4.95 and a maximum of $24.95 per download. So it pays to a buy at least $50 worth at a time.
3 6211 2002 Beginning June 1, Schwab customers will see the minimum cost of a broker-assisted trade jump to $54.95 from $39. Investors will continue to pay $29.95 for an online trade of as many as 1,000 shares plus a $3 handling fee.
4 7514 2008 Hoping to keep wallet-conscious road trippers behind the wheel, car-rental agencies are offering a series of gas discounts that allow customers to snag a tank for well below the national average of $3.94 a gallon. Many of the major car-rental agencies offer discounts of as much as 25 cents per gallon to renters who opt to prepay for half or a full tank of gas when they pick up their car. The catch is that there is no refund for leftover fuel, so rental agencies bank on you returning the car with at least some fuel in the tank. Also, if you don't prepay you will not only get hit with higher gas prices but also a convenience surcharge that can double the per-gallon price.
5 8721 1989 Paychex had a minimum charge of $5 per pay period with the total fee directly proportional to the number of employees. If a company would have 17 employees the cost to prepare pay checks, tax returns and accounting records is $23 per pay period, less than $1.50 per employee. This saved the small business customers a good deal of effort and time. The problem this creates, though, is that with such low prices, Paychex needs big volume to make real money.

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