Atlan

sales 21180
PESA sales(tronn+PESA) 10590
Stick with company tradition by charging only for hardware and give the PESA
software tool away for free

Atlantic computer Price per server cost per server Profit

Tronn(Basic) 2000 1538 462

Cost of PESA per unit 188.8574
Overall profit 273.1426
Since we are offering free software, so our cost will be(equivalent to 4 server)

Charge a price equal to what the customer would pay for four Ontario Zink servers

Atlantic Computer Price per server Cost per server Profit

Tronn(Basic) 2000 1538

Ontario 1700

Since one Tronn is equivalent to 4 ontario so our price will be four times of what ontario Zink's cost i.e 1700*4=680
5262

Conservative Approach:
selling tronn with PESA at twice the cost what ontario is charging i.e 1700*2=3400
Profit margin 1862

Solution Go with strategy 4

Reason Provides better foundation for sales strategy
captures the essences; savings that the customers accrues from buying the produc
Our price will be better than our competitiors and will add extra value to their pur
Customer will have to buy only 1 server instead of four which wil reduce their elet
In R & D, we will have sell units in order to cover our cost i.e 2000000
 Atlantic Computer: A bundle of pricing options

e the PESA
Cost plus approach

Atlantic Computer cost per server

Tronn(Basic) 1538
Cost of PESA(1 Unit) 188.8574

Total cost 1726.857

Selling Price 2244.915 (30% mark up price)

o Zink servers Value in use Pricing

Cost of four basic server Cost of two basic server

Electricity 1000 500
Licensing 3000 1500
Labor cost 8000 4000
Price per server 6800 3400
nk's cost i.e 1700*4=6800 Total cost 18800 9400

difference 1st case 13800

difference 2nd case 4400

selling price as per value adding(case 1) 8900 profit 7362

selling price (case 2) 4200 profit 2662

s from buying the products

d extra value to their purchase
hich wil reduce their eletricity cost and also reduce the complexity of the product
i.e 2000000
roach

profit

518.057223796

Pricing

Cost Tronn plus PESA

250
750
2000
2000
5000
0