pricing for ‘Atlantic bundle’ comprising of the new Tronn server and the PESA (Performance Enhancing Server Accelerator) software tool before SME trade show? Company Overview Atlantic Computers was a manufacturer of servers and related high-tech products based in Amberville‚ New York. Jason Jowers joined the Company four months ago and was made responsible for the pricing strategy of the product “Atlantic Bundle” Components of the Bundle: 1) Tronn: It was developed mainly for the emerging US market
Premium Computer Marketing Price
Determine the price for two Tronn servers plus PESA according to the following pricing methods: • Status-quo pricing • Competition-based pricing • Cost-plus Pricing (Hint: footnote # 5) Note: Jowers makes a conservative estimate that two Tronn servers plus PESA equals the performance of four Ontario Zink servers. To calculate the prices you could use the spreadsheet file included in the course content (Week 3). 2. Determine the Value-based price for two Tronn servers plus PESA. Follow these steps
Premium Pricing
Perspective 1 1. Stick with company tradition by charging only for hardware and give the PESA software tool away for free. As can be seen in Exhibit 2‚ there is a noticeable difference between basic servers running with and without the PESA software. This difference would cater directly to those customers in the file-sharing application and web-server segments of the market. Currently‚ as the Tronn would be competing directly with the rival company’s Zink server‚ which is priced at $1‚700
Premium Marketing Computer Pricing
computer‚ which is aimed at producing the high performance server‚ is ready to sell the basic server. It launches the Tronn loaded with PESA. PESA‚ the software increases the speed of file sharing and web servers‚ two of the most used application for the consumers‚ so it should be sold with the Tronn‚ the hardware. At first year‚ if we assume that the firm will be able to sell all of the Tronn servers it can produce‚ Atlantic’s resulting share of the basic server segment will be 4%. We suggest that possibility
Premium Marketing Pricing
Introduction Atlantic Computer developed a product‚ the “Atlantic Bundle”‚ to meet an emerging basic server market. The Atlantic Bundle is a Tronn server coupled with the Performance Enhancing Server Accelerator software tool “PESA”. Atlantic Computer must decide on the pricing strategy. Situational Analysis The external analysis is as follows: • Customers: The first customer identified has a primary need to host websites‚ “Web Server” customer. The second customer identified has a primary
Premium Pricing Computer Customer service
Atlantic Bundle (i.e.‚ Tronn servers + PESA software tool)? Be sure to evaluate status-quo pricing‚ competition-based pricing‚ cost-plus pricing‚ and value-in-use pricing. Based on an evaluation of the four pricing options—status-quo‚ competition-based‚ cost-plus and value-in-use—we recommend that Jowers charge DayTraderJournal.com a price of $2934.00 for the Atlantic Bundle. In order to provide the sales team with the most flexibility‚ we will also offer a standalone price for the Tronn server only at
Premium Price Pricing Marketing
developed Tronn along with the Performance Enhancing Server Accelerator‚ otherwise known as PESA. Because Atlantic is penetrating new market segment than what they are used to‚ they are faced with competition issues‚ specifically against Ontario’s Zink server. The most pressing issue involves what pricing strategy to go with. They have four main options: 1. Status Quo Pricing – Offering Tronn at $2000 with PESA at no additional charge 2. Competition Based Pricing – Pricing Tronn based on price
Premium Price Pricing Costs
market for nearly 30 years. The products are considered top of the line‚ having high quality and reliability. Their brand equity is an important factor to the success of the bundle. Success of the new product launch is in the hands of the server and PESA being sold as a bundle. It is the perception of the consumer‚ however‚ that software tools are usually free. The basic server expects sales of 50‚000 in 2001 with 36% growth rate. Daytraderjournal.com is an important customer for Atlantic who has
Premium Variable cost Costs Price
a marketplace opportunity in the basic server segment. They have developed a new server‚ the Tronn‚ to meet the needs of this segment. In addition they have created a software tool‚ called the “performance Enhancing Server Accelerator” or PESA‚ that allows the Tronn platform up to four times faster than its standard speed. The central question in the case revolves around how to price the Tronn and PESA. Although cost-plus‚ competition based and status quo pricing are the most prevalent means utilized
Premium Computer Price Computer software
October 18th 2011 Atlantic Computer Case Section 1 1. The “Atlantic Bundle” should use a value-in-use pricing strategy. 2. $2‚500 per Tronn server with PESA software 3. Sales force will have a tough time selling the increased cost of the servers to the end customer based on software; the standard in the marketplace is that this software should be free. Also‚ they will be concerned with a smaller commission with fewer servers being purchased by each customer. To motivate the
Premium