Raise Price to Improve Revenues and Margins
CHOICE 1 OBJECTIVE: PRICE THE SAME, REDUCE PERFORMANCE AND COST
CHOICE 2 ISOLATE SEGMENTS: CUSTOMER SEGMENTS WITH HIGH SERVICING COSTS
CHOICE 3 COMPONENT: SET LIMITS ON THE USAGE OF THE PRODUCT
| No. | SIC | Year | Notes |
| 1 | 4522 | 2006 | In response to increasing demand, companies which offer fractional ownership of private jets are adding restrictions to their popular lower-end programs. Sentient Jet introduced a policy which allows it to reschedule flights booked on peak travel days within a three-hour window. |
| 2 | 6141 | 1989 | High-volumes are available with customers who are credit risks but who charge high volumes on their cards. Citi and others issue credit cards whose outstanding debts are covered by a certificate of deposit. |
| 3 | 7374 | 1995 | Since 1990, CES has lost several major National customers on high prices, most of whom have been voluntary: CES has forfeited relationships with several higher-risk customers, including United Airlines, Northwest Airlines, and Macy’s, by requiring them them to have substantial cash reserves to protect CES’ potential liability. While CES prides itself on its risk management policies, this situation has enabled less risk-averse competitors such as NPC, First Bank Systems, and NaBanco to get into these high-volume relationships. When CES has lost customers since 1990, it has most often been on the basis of high prices, and the Company loses on price far more often than other competitors. |
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