Atlantic Computer

1597 Words Jan 29th, 2015 7 Pages
Atlantic Computers:
A bundle of pricing options

In the case, it mentioned that, conservatively, one Tronn server equals to two Zink servers; Aggressively, one Tronn equals to four Zink servers. Within the premise that Matzer and his colleagues were quite conservative, he decided to compare two basic servers loaded with the PESA versus four basic servers. In this case, therefore, we calculate the price of Atlantic Bundle with the assumption that two Atlantic Bundles is the equivalent of four Ontario Zink servers.
1.
* Status-Quo Pricing
This pricing strategy considers only the cost of server and gives PESA software tool away for free. Therefore, the price of two Atlantic Bundles is $4,000.
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* Recommendation
Value-in-use (shared value) gives the best price for Jowers to charge DayTraderJournal.com. Atlantic Computers decided to enter into the emerging U.S. market for basic servers. Value-in-use (shared value) allows Atlantic Computers to maximize their profits by demonstrating the value of the Atlantic Bundle to the customer. Especially, the top 3 key buying criteria of DayTraderJournal.com includes minimizing their possession costs. Value-in-use (shared value) gives the customer a direct perception of monetary benefits. In the term of monetary benefits, this method, conservatively, provides a saving of $2,400 to a customer. Pricing Method | Price | Revenues(sales: 10590) | Costs | Total Profits | Profit/Unit | Status-Quo | $2,000 | $21,180,000 | 18287420 | $2,892,580 | $273 | Competition based | $3,400 | $36,006,000 | $18,287,420 | $17,718,580 | $1,673 | Cost-Plus | $2,245 | $23,774,550 | $18,287,420 | $5,487,130 | $518 | Value-in-use(Maximum) | $3,587 | $37,986,330 | $18,287,420 | $19,698,910 | $1,860 | Value-in-use(Shared) | $3,200 | $33,888,000 | $18,287,420 | $15,600,580 | $1,473 |

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Pricing Strategy
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