Raise Price to Improve Revenues and Margins

CHOICE 1 OBJECTIVE: RAISE PRICE, RAISE PERFORMANCE AND COST BY SMALLER AMOUNT

CHOICE 2 ISOLATE SEGMENTS: CUSTOMER SEGMENTS WHO REQUIRE A SPECIFIC PRODUCT SYSTEM COMPONENT

CHOICE 3 COMPONENT: ADD AN EXTRA FEE ON TOP OF VARIABLE CHARGE

No. SIC Year Notes
1 4512 2006 As part of an attempt to increase revenues, many airlines have begun charging for food and drinks, skycap services and phone reservations. The newest trend is seating. Air Canada charges $12 for reserved seats on its cheapest fares within Canada and the US.
2 4812 2002 Second-generation gearmakers claim that the economics now work. In Pocahontas the first $30,000 antenna was picked up by the town and the phone company got free use of the water tower to mount it on. Antennas cost just under $200 per user while the modems cost another $500. If users pay a standard $30 a month, the capital cost can be recouped quickly. As more users sign on, the town can double capacity simply by adding another transmitter.
3 6141 2002 Coinstar operates the nation's only network of supermarket-based coin machines. Users can simply pour in their coins, which are then automatically counted and returned via a receipt redeemable for cash at the checkout. An 8.9% fee is taken for the exchange.
4 6324 1996 Oxford's Freedom Plan is a point-of-service product that, for an additional charge, allows patients to visit doctors outside its network.

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