Raise Prices to Improve Revenues and Margins

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

CHOICE 2 ISOLATE SEGMENTS: CUSTOMER SEGMENTS WITH HIGH SERVICING COSTS

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

No. SIC Year Notes
1 4812 2005 Prepaid mobile phones are popular with new users, including senior citizens and teenagers. A range of traditional and prepaid companies have sprung up to provide these services. Verizon offers an expensive $99.99 starter kit but has standard $0.10 rates with a 99-cent a day access charge. Despite the higher costs, calls within the Verizon Network are unlimited.
2 4812 2005 Prepaid mobile phones are popular with new users, including senior citizens and teenagers. A range of traditional and prepaid companies have sprung up to provide these services. T-Mobile To Go has a high $79.99 starter kit but offers discounts when the user purchases minutes in higher quantities.
3 4813 2000 Prior to AT&T's 7 cents a minute plan consumers faced a bewildering set of pricing options for long distance phone service. AT&T charged 15 cents per minute per call with no monthly fee; or 10 cents a minute with a $4.95 monthly fee.
4 5411 2001 To cover its expenses, Tesco charges $8 a delivery. Webvan charges $4.95 and only makes that charge for orders of $75 or less.
5 6162 1998 The subprime market provides a lot of flexibility for the consumer and the lender, but it can also become abused. For subprime lending, First Alliance Mortgage charges interest of up to 24.8%, borrowers pay a $179.50 sign-up fee, and a $38.50 annual fee. Their credit is tied to the equity of their homes so the penalty for non-payment is foreclosure.
6 6163 2003 New mortgages offer buyers more flexibility but often include higher fees. E*Trade's new Mortgage on the Move allows borrowers to take your interest rate and balance on your current mortgage to your next home, ideal if you plan to move in a few years. However, a 0.6% interest rate is added to the fixed rate, making it difficult to recoup the extra fees.
7 6211 1998 Ameritrade charges a $60-an-hour research fee, plus $5 for every trade slip mailed.
8 7372 1999 Microsoft offers free support for users of Money on all questions within its normal business hours. It's $15 a call outside those hours.
9 7374 2002 Yahoo and Microsoft's MSN Hotmail have begun charging up to $50 a year for enhanced services, such as e-mail forwarding and extra storage.
10 8361 1997 These residents may need increased care or monitoring due to such problems as incontinence or wandering. Sunrise charges an extra monthly fee for this higher level of care based on the additional services provided. Approximately one half of Sunrise's residents utilize the Plus Care program.
11 8361 2001 Sunrise doesn't just enroll more people in its assisted-living homes, it also charges them more. Sunrise makes the business pay by charging hefty premiums for care beyond assisted living's basics, which are help with dressing, bathing and getting around.

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