The Delicate Art of Price Increases

It's Business 101: One way to drive revenue growth is by passing through price increases to customers. But there are limits to that strategy, and a company had better know its relative value proposition with customers before making aggressive moves on the pricing front. No company showed us the inherent risks of price increases better than Netflix during its summer of blunders last year. However, a couple of other media companies, Sirius XM and Coinstar, have seen relative success in raising prices in the past year. In the following video, Brenton discusses all three moves, and the outcomes that followed.

Despite being one of the market's biggest winners since bottoming out three years ago, there is still some healthy upside to be had if things go right for Sirius XM -- and plenty of room to fall if things don't. Read all about Sirius in our brand-new premium report. To get started, just click here now.

Brenton Flynn owns shares of Netflix. The Motley Fool owns shares of Netflix and Starbucks. Motley Fool newsletter services recommend Netflix and Starbucks. Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.


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