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: SET LIMITS ON THE USAGE OF THE PRODUCT
| No. | SIC | Year | Notes |
| 1 | 1021 | 1983 | At the beginning of the decade, manufacturers set customer prices based on their published Producer Price. In 1983, Phelps Dodge switched from Producers Price-based customer pricing to COMEX-based customer pricing in an attempt to gain market share and to control and limit the amount of merchant copper tolled through its rod mills. Customers previously able to toll merchant copper on a one-to-one basis with PD now had to buy all rod products made by PD directly from PD. |
| 2 | 3149 | 2004 | K-Swiss limits supplies to retailers and refuses to let mass marketers sell its products. It also keeps prices higher than the competition's and sells the same 37-year-old designed shoe with little changes. The target market is the trend-driven 14-24 teens. Its white, leather tennis shoe "Original Classic" remains the biggest seller and it accounts for 40% of the company's revenue. Another 25% comes from variations of the Classics. |
| 3 | 6211 | 1988 | In Dutch auction tender offer, co. states the # of shares it will buy during a certain period. Co. sets price range between which stockholders can tender shares for sale. Purchase price becomes the highest price necessary to acquire all shares co. wants. |
| 4 | 6324 | 2007 | Both Guardian Life and Humana have introduced multiyear plans designed to make health insurance premiums more predictable for smaller employers and reduce turnover. However, the plans could result in sharply higher deductibles and co-payments if medical costs rise more than expected. Guardian Life's "Premium Protect" program is designed for employers with 51-150 employees. It caps the amount premiums can rise in one year to 9%. Guardian charges an upfront fee of 3% to 4%. If costs are higher than anticipated, co-payments can rise by as much as $15 and deductibles are subject to $50 to $1000 increases. |
| 5 | 7372 | 2009 | Convincing customers to upgrade from a free product to a pay version isn't simple. To persuade customers to upgrade, software makers generally try one of two approaches: limit the number of people who can use the free product or limit the features on the giveaway version. |
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