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The Atlantic Bundle

Satisfactory Essays

CompQuestion 1: What price should Jowers charge DayTraderJournal.com for the ‘’Atlantic Bundle’’?
There are four pricing strategies where Atlantic computer can choose from. These strategies are: status-quo pricing, competition-based pricing, cost-plus pricing and value-in-use pricing. Each strategy has a calculation and a price outcome. Below I will describe all strategies and all advantages and disadvantages of that particular strategy.

1. Status-quo pricing: Status-quo pricing | Price of Tronn server | $2.000 | Price of PESA | FREE | $0 | Total price of Tronn with PESA | $2.000 | Price of ''Atlantic bundle'' | $4.000 |
In this case the Atlantic Computer company sticks to the tradition by charging only for the hardware, the Tronn …show more content…

Value-in-use pricing the best method: From all the four price options this is the best one to choose. In table 2 you will see that this method will generate the highest profit. Because we show DayTraderJournal.com that they will get a lot of price benefits choosing the Tronn servers, instead of four Zink servers, they will likely choose for Atlantic Computer.

Question 2: How much money will be left on the table if the firm were to give away the software tool for free?
In table 1, we calculate the total purchases of Tronn servers from 2001 till 2003. The total purchases will be 21,180. If the company were to give away the software for free, they choose the status-quo pricing. With the total purchases we can calculate what the profit will be. In table 2 you will see that the total profit will be $7,785,160 dollar. If you compare that to the best option, which is value-in-use pricing, and has a total profit of $54,381,160 dollar. By subtracting the status-quo from value-in-use, makes the total amount of money left on the table. This amount is $46,596,000 dollar.

Question 3: How are your intended customers likely to react to your recommended pricing strategy?
The chosen price strategy is value-in-use, the customer will have benefits in the form of savings. The Tronn servers will supply the basic segment. But with the development of the PESA software, the performance of the Tronn will increase, specially on e-mail applications, file sharing and web servers. It is possible

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