Raise Price to Improve Revenues and Margins
CHOICE 1 OBJECTIVE: RAISE PRICE, RAISE PERFORMANCE AND COST BY SMALLER AMOUNT
CHOICE 2 ISOLATE SEGMENTS: DUE TO A UNIQUE FUNCTION
CHOICE 3 COMPONENT: CHANGE CONVENIENCE AND PRICE TOGETHER
| No. | SIC | Year | Notes |
| 1 | 2084 | 2001 | Acid cigars are only sold in 500 stores across the U.S. and on the Web site. Because of this, a box can be sold for $150 a piece. Screaming Eagle vineyard only produces 500 cases a year, which allows a bottle to sell for $125. Manipulating supply can backfire, as Ty once announced a retirement of a line of Beanie Babies and then reneged, which alienated its customers. |
| 2 | 2096 | 1998 | Demand for different packaging options runs the gamut these days – individual serving sizes for fast-food restaurants, giant economy packages for warehouse clubs, and institutional sizes for private and public consumption. |
| 3 | 2389 | 2002 | The new Levi Strauss Signature line will feature men's, women's and children's jeans for less than $30. Most of Wal-Mart's jeans sell for less than $18. Some go below $10. |
| 4 | 2451 | 1991 | Recession has hit the mobile home business. Sales should be down over 50% this year from rates of 8 years ago. There are 90 mobile-home builders now, compared to 250 10 years ago. Oakwood Homes and Clayton Homes are seeing high returns, due to integrated services, esp. financing. Manufactured homes sell chiefly on price. Successful mobile home builders offer fully integrated service. |
| 5 | 2711 | 2009 | Some small businesses are overhauling their pricing strategies amid the recession and finding new growth through lower offerings and discounts. CouponCabin.com noticed a surge of interest in grocery coupons, after years of declining consumer activity around them in the market. In April, the company launched a grocery-coupon section where visitors could print coupons to use at their local supermarkets. CouponCabin nets a few cents per print from each item's manufacturer. The site has had a 300% increase in visitors during the fourth quarter from a year earlier. |
| 6 | 2771 | 1999 | The industry has two Next Leader products: Blue Mountain electronic greetings and Make it Your Own consumer software. Hallmark has been hesitant to enter either of these markets. |
| 7 | 3651 | 2002 | Apple iPods still cost two or three times more than a CD player that also plays MP3s. |
| 8 | 3651 | 2009 | Apple introduced a new iPod Shuffle that is about half the size of its previous model but with the capacity to play twice as many songs. The new $79 four-gigabyte device will play as many as 1,000 songs, the same as the first iPod, which sold for $399 in 2001. The new model will allow users to switch between multiple playlists, which wasn't possible with previous models. It also includes a new voice feature that announces songs and playlists. The new Shuffle is $30 more expensive than the older two-gigabyte Shuffle. Apple sold a record number of iPods in winter quarter, yet iPod revenue fell 16% to $3.4 billion as the devices have gotten less expensive over time. |
| 9 | 4522 | 2006 | Travelers wishing to use private jets can create debit accounts rather than buy hours. Sentient Jet allows customers to deposit money into a debit account, when the service is used, hourly fees and fuel charges are deducted from the account. Flight Options' JetPASS Ultimate Travel program operates on the same principle but adjusts the costs depending on the type of jet, day and time of travel. |
| 10 | 4812 | 2008 | The cheaper, more mainstream -minded successor to the $499 and $599 iPhones, the $199 and $299 iPhone 3G, will face the challenge of getting people to pay the increased monthly voice and data plans, which raise the cost of ownership over two years to more than the original iPhone. The iPhone 3G will be sold in packages starting at $70 a month for 450 anytime voice minutes and unlimited data with the option to pay another $5 a month for 200 text messages. A similar package for the original iPhone, with its slower data speeds, was $60 a month, including 200 text messages. Over the course of a two-year contract, the least an original iPhone user paid was $1,839 for hardware and monthly fees. The same base package for the 3G is $1,999. |
| 11 | 4813 | 1992 | AT&T will sell a new phone service in which subscribers receive a new phone number with a 700 prefix to follow them for life. You wouldn't have to worry about informing everyone of your new phone numbers. |
| 12 | 5331 | 2006 | Wal-Mart's holiday price cuts are unlikely to have a dramatic effect on electronics chains like Best Buy and Circuit City as the retailers offer financing, service plans and better selections that Wal-Mart cannot beat. |
| 13 | 7375 | 1999 | With ISPs Apogee Networks and Narus, users can pay more to be certain that bandwidth is available when needed. |
| 14 | 8361 | 1997 | Residents essentially rent an apartment (in the case of some economic models, "buy" a unit upfront through a large entrance fee or escrow deposit, which is later used to pay for services should the resident "spend-down" and/or the remainder reverts back to heirs upon death and "re-sale" of the unit), pay a monthly fee, and receive services including daily meals; transportation; access to social, recreational, and educational activities; exercise and fitness classes; laundry; housekeeping; and health care monitoring and preventive services (dietary and nutrition, influenza inoculations, regular physical exams). In many cases part of the original upfront payment may be returned to the resident or the heirs. |
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