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  • Atlantic Computer Pricing

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    bikash08146
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    The document compares 4 pricing options - traditional pricing charges $2,000 per Tronn server and $4,000 for a bundle, competitor pricing charges $1,700 per server up to 4 servers, cost-based pricing calculates the total cost of production and margins to set individual prices of $2,244.91 per server with PESA and $1,999.40 without, and value-in-use pricing shares estimated savings of $6,000 from using Tronn and PESA equally between the customer and company.

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    The document compares 4 pricing options - traditional pricing charges $2,000 per Tronn server and $4,000 for a bundle, competitor pricing charges $1,700 per server up to 4 servers, cost-based pricing calculates the total cost of production and margins to set individual prices of $2,244.91 per server with PESA and $1,999.40 without, and value-in-use pricing shares estimated savings of $6,000 from using Tronn and PESA equally between the customer and company.

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    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd
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    24 views2 pages

    Atlantic Computer Pricing

    Uploaded by

    bikash08146
    The document compares 4 pricing options - traditional pricing charges $2,000 per Tronn server and $4,000 for a bundle, competitor pricing charges $1,700 per server up to 4 servers, cost-based pricing calculates the total cost of production and margins to set individual prices of $2,244.91 per server with PESA and $1,999.40 without, and value-in-use pricing shares estimated savings of $6,000 from using Tronn and PESA equally between the customer and company.

    Copyright:

    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    Download as xlsx, pdf, or txt
    of 2

    Option 1: Traditional Pricing

    Price of 1 Tronn server $2,000.00


    Price of PESA $0.00
    Price of bundle $4,000.00
    *Assumptions
    A customer will use 2 Tronn servers loaded with PESA

    Option 2: Competitor based Pricing


    Price of 1 Ontario Zinc Server $1,700.00
    Price of PESA $0.00
    Price of bundle $6,800.00
    *Assumptions
    Each customer will be charged equal to 4 Ontario Zinc servers and not charged for the PESA software

    Option 3: Cost- based Pricing


    Toal demand of Tronn Server 21180
    Year 1 2000
    Year 2 6300
    Year 3 12880
    Loaded with PESA 10590
    Cost of producing Tronn server $32,574,840
    Cost of PESA development $2,000,000
    Cost per PESA sale $188.86
    Cost per Tronn server $1,538.00
    Cost per Server with PESA $1,726.86
    Cost per Server without PESA $1,538.00
    Including margin ->
    Price of server with PESA $2,244.91
    Price of server without PESA $1,999.40

    Option 4: Value-in-use Pricing Gain sharing with customer (50:50)


    Electricity saving 500 250
    Liscencing 1500 750
    Admin cost 4000 2000
    Savings from using the Tronn and PESA 6000 3000
    *Assumptions
    4 Ontario Zinc servers and 2 Tronn loaded with PESA give equal performance

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