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  • APO 5 - PV - Atlantic Computers

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    Krishna kishor tiwari
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    The document compares four pricing strategies - status quo, cost plus, competition based, and value based pricing. It provides the one time cost, revenue over 3 years, and profit for a product called the Atlantic Bundle and server under each strategy. Competition based pricing generates the highest profit at $106.8 million, while value based pricing generates $47.5 million and status quo pricing generates $7.7 million in profit. Cost plus pricing results in $5.7 million in profit.

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    APO 5_PV_Atlantic Computers

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    The document compares four pricing strategies - status quo, cost plus, competition based, and value based pricing. It provides the one time cost, revenue over 3 years, and profit for a product called the Atlantic Bundle and server under each strategy. Competition based pricing generates the highest profit at $106.8 million, while value based pricing generates $47.5 million and status quo pricing generates $7.7 million in profit. Cost plus pricing results in $5.7 million in profit.

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    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd
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    11 views7 pages

    APO 5 - PV - Atlantic Computers

    Uploaded by

    Krishna kishor tiwari
    The document compares four pricing strategies - status quo, cost plus, competition based, and value based pricing. It provides the one time cost, revenue over 3 years, and profit for a product called the Atlantic Bundle and server under each strategy. Competition based pricing generates the highest profit at $106.8 million, while value based pricing generates $47.5 million and status quo pricing generates $7.7 million in profit. Cost plus pricing results in $5.7 million in profit.

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    of 7

    Status Quo Pricing

    One Time Cost Revenue Over 3 Years


    Price of Atlantic Bundle 2000 42,360,000
    Price of PESA 0
    Price of Server 2000
    Profit Over Cost 23%
    Profit Over Price 18%

    Cost Plus Pricing


    One Time Cost Revenue Over 3 Years
    Price of Atlantic Bundle 2000 42,360,000
    Price of PESA 0
    Price of Server 2000
    Profit Over Cost 16%
    Profit Over Price 14%
    Competition Based Pricing
    One Time Cost Revenue Over 3 Years
    Price of Atlantic Bundle 6677.24 141,423,943
    Price of PESA 0
    Price of Server 6677.24
    Profit Over Cost 309%
    Profit Over Price 76%
    Value-Based Pricing
    One Time Cost Revenue Over 3 Years
    Price of Atlantic Bundle 3877.24 82,119,943
    Price of PESA 0
    Price of Server 3877.24
    Profit Over Cost 138%
    Profit Over Price 58%
    Profit
    7,785,344

    Profit
    5,785,529

    Profit
    106,849,288

    Profit
    47,545,288
    Status Quo Pricing
    One Time Cost Revenue Over 3 Years
    Price of Atlantic Bundle 2000 42,360,000
    Price of PESA 0
    Price of Server 2000
    Profit Over Cost 23%
    Profit Over Price 18%

    Cost Plus Pricing


    One Time Cost Revenue Over 3 Years
    Price of Atlantic Bundle 2245.52 47,560,114
    Price of PESA 245.52
    Price of Server 2000
    Profit Over Cost 30%
    Profit Over Price 23%
    Competition Based Pricing
    One Time Cost Revenue Over 3 Years
    Price of Atlantic Bundle 6800 144,024,000
    Price of PESA 122.76
    Price of Server 6677.24
    Profit Over Cost 317%
    Profit Over Price 76%
    Value-Based Pricing
    One Time Cost Revenue Over 3 Years
    Price of Atlantic Bundle 4000 84,720,000
    Price of PESA 122.76
    Price of Server 3877.24
    Profit Over Cost 145%
    Profit Over Price 59%
    Money on The Table
    7,785,344

    Money on The Table


    10,985,642

    Money on The Table


    109,449,344

    Money on The Table


    50,145,344
    Cost Plus Pricing Money on
    Cost Information
    Electricity cost of software licence labour
    Basic Servers 250 750 80000
    High Performance Servers 400 750 80000
    Price Cost Profit
    Tronn Basic 2000 1538 462
    Radia 11000 7586 3414
    Zink (Competitor) 1700 1214 486

    Cost Cost Per Unit Mark Up by 30%


    PESA 2000000 94.4287063267233 122.7573182247
    Tronn (Basic Server) 1538 - 1999.4
    Market Potential 2001 2002 2003
    Basic Segements 50000 70000 92000
    Share of Atlantic (In Units) 2000 6300 12880
    4 Times Savings 50-50 Share
    84000 4000 2000

    30.04%
    45.00%
    40.03%

    Total Units
    21180

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