Raise Price to Improve Revenues and Margins
CHOICE 1 OBJECTIVE: RAISE PRICE WITH NO CHANGE IN PERFORMANCE AND COST
CHOICE 2 ISOLATE SEGMENTS: CUSTOMER SEGMENTS WITH HIGH SERVICING COSTS
CHOICE 3 COMPONENT: CHANGE THE LIST PRICE
| No. | SIC | Year | Notes |
| 1 | 2721 | 1991 | Newsweek charges a few dollars to phone the magazine's new 900 number with opinions or reactions. It's easier than writing in, but costs much more. |
| 2 | 4812 | 2004 | The nation's largest long-distance carriers have raised their basic rates by an average of more than 55% during the past four years, socking consumers who haven't signed up for special calling plans. Phone companies have also quietly raised the price of collect and calling cards. MCI has increased the rate for a 10-minute calling card to $14.25, up 25% in just the past year. Sprint charges $14.89 for a 10-minute collect call. |
| 3 | 4813 | 1994 | AT&T has a new program, called TrueUSA savings. The plan is to increase long-distance rates, then award discounts to high-volume callers. |
| 4 | 4813 | 1996 | Ameritech recently boosted the price of its pay phones by a dime to 35 cents; on the heels of legislation that may bar baby Bells from subsidizing their pay phone business with rate increases in other areas. |
| 5 | 4813 | 2001 | While long-distance rates have declined over the past five years, an assortment of fees and monthly minimums has kept phone bills inflated. While price wars between the major long-distance carriers have kept per-minute rates on most calling plans low, AT&T and Worldcom Inc's MCI Group have been increasing their basic rates over the past few months. |
| 6 | 6021 | 1985 | Since small accounts are relatively more expensive to maintain and less lucrative than large ones, low and middle-income customers have paid a disproportionate share of bank fees. |
| 7 | 6021 | 1995 | The average monthly balance needed to avoid checking-account fees rose 30% in the past two years, to an average of $1,242. |
| 8 | 6211 | 2002 | Schwab is raising the price of trading with a broker by about 40%, but leaving the cost of buying stocks online unchanged. The move is significant because Schwab helped pioneer the discount-brokerage business, which slashed the cost of trading stocks for millions. Competing discount brokerages raised a limited array of charges earlier this year. |
| 9 | 6321 | 1990 | Insurers used to lump small and large employers together & charge all an average cost. But company began charging according to the health profile of individual workers. When someone at a small company gets sick, the company has to bear full cost of increased risk. This passes part of cost to customer. |
| 10 | 6331 | 1990 | Progressive profits because it will not underwrite at a loss. When Progressive finds that it is underwriting at a loss, it immediately raises rates, even through that results in a loss of volume. |
| 11 | 7514 | 1989 | In recent weeks, Hertz, Avis, Budget, & National boosted most prices for vacationers about 5-10%. |
| 12 | 7514 | 1994 | Hertz is once again trying to increase its car-rental rates, this time by 8% to 10% on most rates nationwide. The increases will apply to rates it charges leisure travelers–about 50% of the company's business. |
| 13 | 7812 | 2002 | With DVDs becoming the most popular form of movie rental and purchases, analysts are pointing out differences with this mode of distribution and videocassettes which revolutionized the industry. Often videocassettes were priced based on a two-tiered system; videos targeted at a large audience like animated movies for children were priced lower. Movies that people may only want to see once were aimed at the rental market and carried higher wholesale prices. Video rental outlets shared some of the profits with the studios, something they don't do with DVDs. |
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