Scribd
Upload
141 views9 pages

Atlantic Computers - Section F - Group 4

The document presents 4 pricing options for Atlantic Computer's servers: 1) Status quo pricing of $2000 per server 2) Competition-based pricing averaging $3400 per server 3) Cost plus pricing of $2245 per server after adding a 30% markup 4) Value-based pricing of $4200 per server accounting for cost savings It calculates the total revenue and profit for each option based on projected sales of 10,590 servers. Value-based pricing generates the highest total revenue and profit of $26 million.

Uploaded by

Mukul
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as XLSX, PDF, TXT or read online on Scribd
141 views9 pages

Atlantic Computers - Section F - Group 4

The document presents 4 pricing options for Atlantic Computer's servers: 1) Status quo pricing of $2000 per server 2) Competition-based pricing averaging $3400 per server 3) Cost plus pricing of $2245 per server after adding a 30% markup 4) Value-based pricing of $4200 per server accounting for cost savings It calculates the total revenue and profit for each option based on projected sales of 10,590 servers. Value-based pricing generates the highest total revenue and profit of $26 million.

Uploaded by

Mukul
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as XLSX, PDF, TXT or read online on Scribd
You are on page 1/ 9

Atlantic Computer : A Bundle of Pricin

Group 4 -Section F

Pricing options

option 1: status quo pricing

no. of servers
price per server
Final price

option 2: competition based pricing

no. of servers
price per server
Final Price

option 3: cost plus pricing

no of servers
cost per server
cost for software development
total market volume
software cost
server cost with PESA
markup (30%)
final price with PESA
price per server

option 4: value based pricing

no of servers
price per server
electricity cost
labour cost
software
first orderlicense
savings(from purchasing
fewer servers)
second order savings( ownrship
costs)
total savings
savings gain (50%)
final price
price per server
Prices per Server as calculated in the table above:-
Pricing Options
Status Quo
Competition
Cost plus
Value based

Note: All prices are in US dollars


uter : A Bundle of Pricing Options
p 4 -Section F

Tronn Zink

1 2 4
2000 2000 1700 exhibit 3 Pg 9
2000 4000 6800

1 2 4 cost for software development


1700 1700 1700 exhibit 3 Pg 9 total market volume
1700 3400 6800 software cost per server

1 2 4 Projected Market Volume


1538 1538 exhibit 3 Pg 9 year
2000000 2000000 exhibit 3 Pg 9 total basic servers
10590 10590 tronn servers (%)
188.8574 377.7148 Total no of Tronn servers
1726.857 3453.715
518.0572 1036.114 pg 6 foot note total tronn servers (in units)
2244.914 4489.829 tronn servers with PESA (%)
2244.914 2244.914 no of tronn servers with PESA

1 2 4
2000 2000 1700 exibit 3 Pg 9 administrator annual salary
250 500 1000 exibit 3 Pg 9 no of servers 1 admin can manage
2000 4000 8000 labour cost
750 1500 3000 exibit
page 43, Pg 9
third
4800 2800 last
pagepara
4 , third
9000 6000 last para
13800 8800
6900 4400
8900 8400 18800
8900 4200 4700
ted in the table above:-
Price per server
2000
1700
2245
4200
2000000 exhibit 3 Pg 9
10590 exhibit 3 Pg 9
188.857413

cted Market Volume (in units)


2001 2002 2003
50000 70000 92000
4% 9% 14%
2000 6300 12880

21180
50% pg 6 foot note
10590

80000 exibit 3 Pg 9
40 exibit 3 Pg 9
2000
exhibit 1
Pg 7
Revenue and Profit calculation

Pricing Options Price Cost Total Revenue


Status Quo 2000 1727 21180000
Competition 3400 1727 36006000
Cost plus 2245 1727 23773639.26
Value based 4200 1727 44478000

Note: All prices are in US dollars


Profit calculation

Total Cost Total Profit Profit/Unit


18287420 2892580 273.1425873466
18287420 17718580 1673.142587347
18287420 5486219.26 518.0565873466
18287420 26190580 2473.142587347
no. of Tronn servers with PESA 10590
Total Revenue ( 10590* 2000,1700,2245,4200) 44478000
Total Cost ( 10590*1727) 18287420

You might also like