Atlantic Computer Case Study

Pricing can play an important role in the success or disaster of any product. Too high a price and the product will fail; too low a price and not enough profits will be made to sustain business operations (Hisrich, Peters, & Shepherd, 2014). The key is to make the customer think that they are paying exactly the right price for the product. Anything else though in this regard means the product is not positioned well in the mind of the consumer. First of all, Gril-Kleen will have to decide on what sort of strategy it needs to pursue. This strategy is decided on three factors namely costs, margins and competition.

To determine the optimal prices for the UriCap products, the team used competitive pricing, both indirect and direct, custom willingness –to-pay, cost plus pricing based on distribution channel partner needs, and economic value analysis. Direct competitor pricing, which was only applicable to the UriCap-M product, was determine through secondary research. On the other hand, primary research was used to determine indirect competitor, or substitute, pricing. A combination of primary research and secondary research was used during economic value analysis while customer willingness-to-pay (WTP) was determined through an online survey.

After reviewing all the potential problems that ServerVault is facing, the most crucial problem is the shortage of cash. It is because ServerVault wants to maintain its competitiveness in hosting industry. Therefore, it needs adequate cash to build more new facilities in order to expand its business in a larger scale. There are several approaches which are worth for SeverVault to consider.

Jim O’ Brien made an observation that a portion of Hardee’s customers have a higher profit rate than others. Hardee has a history of using discounts and published tariff taxes to establish their prices. Although discounts are attained through freight volume, this may have to change due to the fact that the employees work volume is higher than the freight volume. Based off this information, Jim expects a new service demands for his consumer to be troublesome to cost and price because it will no longer be based on freight volume; the new demands will include but not be limited to merge- in-transit, event management, continuous shipment tracking RFID capability, and dedicated customer service personnel. With all this new found knowledge Jim and the pricing managers for Hardee Transportation, is attempting to find a new pricing method that will benefit their customers and themselves; they must find a pricing method

Cost-plus pricing lead to a complicated pricing structures, since distributors and customers negotiated separate product prices from manufacturers, introduced incentives, let prices vary from customer to customer, covered some products by contract and some don’t etc.

In this case the Atlantic Computer company sticks to the tradition by charging only for the hardware,

Because the package price cannot exceed the summed market prices of the individual items included in the package plus the opportunity cost of the time consumers would otherwise devote to home production, circumstances exist for monopolists to profitably raise the prices of commodity bundles an epsilon below the level at which consumers would be induced to make rather than buy.

Commercial data centers like Equinix and Amazon have to be judicious expanding capacity considering lengthy construction and heavy capital investment. A data center contains aisles and aisles of server cabinets thousands with each costing more than a quarter million containing 64 specialized laptop sized servers essentially a computer. Networking cabinets go together with server cabinets in order to electronically connect any server to another through high-speed fiber cables. The networking cabinets of today consume 25% of the useful floor space for IT cabinets but consist of 40% of the total cost. The data center is clamoring for IT gear that supports a new technology known as Network virtualization to address the conservation of space and

The price of the new medical device, BrightMatter, at Henry Ford Hospital is extremely expensive. The cost of the device is over one million dollars, and does not include the cost of software upgrades, or other technology improvements that need to be made in order for the device to be successful. The expensive device is expected to have a positive return on investment, which will more than cover the cost of the device, and other services. When formulating a pricing strategy it is imperative that organizations establish a strategy that will sustain a profit. When considering costs, organizations need to know what it can afford to pay, while taking into account the prices the market allows, as well as allowing a profit. According to the article by Sorenson, Drummond and Burns, when using the bundling strategy, CMS does not consider the cost relative to alternative treatment options in its pricing (Sorenson, Drummond, and Burns, 2013). Instead, the payments are based on estimates of average costs. This particular pricing strategy includes add on payments based on the higher cost of the device. The high cost of the BrightMatter device will allow Henry Ford Hospital to receive add on payments, that equivalent fifty percent of the additional costs of using the new device in a case (Sorenson, Drummond, and Burns, 2013). Formulating a pricing strategy for the device, BrightMatter, does not

However, unbundling can benefit consumers or increase consumer surplus under any of the four conditions: 1) Consumers’ preferences are sufficiently different; 2) Consumers might benefit from the price reduction; 3) The percentage of the consumers with similar preference relative to consumers with different preference; 4) Firms have significantly low marginal cost. However, it seems that apart from the fourth one, these approaches are not workable for U.S. cable markets. Based on the following research and analysis, unbundling cable is less likely to increase consumer surplus for U.S. consumers because of the large proportion of consumers with similar preference

An IOException might occur if you are trying to create a file on a disk that is "write-protected," which means that it cannot be modified.

Competition based pricing is setting prices based on competitors strategies, prices, cost, and market offerings (Armstrong, 2015 p. 273). So Bailey Box is significantly lower than the Hair Bow Box selling for $16 per box. The difference in their pricing is that they offer half the amount of items in their boxes than The Hair Bow Box. When subscribing to So Bailey Box consumers are paying less for much less (Armstrong, 2015 p.194).

Now that the initial startup phase of our company is complete, our team of Analysts has determined what we have deemed reasonable costs, considering that our definition of “reasonable” aligns with yours. In order to defend our stance on what we feel is reasonable, we have considered the nature of costs, such as air travel for business meetings and the use of our high quality materials, by researching the market for affordable, high-quality materials and have put standards in place to keep air travel valid for these government contracts. With the understanding that although the nature of the cost may be considered acceptable, the amount of the cost may not meet standards when it comes to costs defined as “reasonable” (Murphy, John Edward; Guide to Contract Pricing, pg. 47). With this in mind, we continue to research the market to find adequate material at a much lower cost. We have used this data to create what we feel is a cost that would not and should not exceed what any prudent person would pay in a competitive business environment. We are aware of the competition and have made it a strong incentive of ours to save on costs for the items that we are providing to you. Allowability of our costs is guided by the 52 generally applicable cost principles that are based on specific laws and policies (Murphy, John Edward; Guide to Contract

Third Option – The next pricing strategy involves a pricing strategy where a low price on one product, boosts sales on a separate, but complimentary product. More specifically, Augustine Medical, Inc. could give the heater/blower unit away free of charge. In turn, the organization could set a price on the plastic covers that would yield a high

Briefly describe the pricing structure that is used with this product and explain the benefits of this method.