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The Atlantic Bundle

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CompQuestion 1: What price should Jowers charge DayTraderJournal.com for the ‘’Atlantic Bundle’’?
There are four pricing strategies where Atlantic computer can choose from. These strategies are: status-quo pricing, competition-based pricing, cost-plus pricing and value-in-use pricing. Each strategy has a calculation and a price outcome. Below I will describe all strategies and all advantages and disadvantages of that particular strategy.

1. Status-quo pricing: Status-quo pricing | Price of Tronn server | $2.000 | Price of PESA | FREE | $0 | Total price of Tronn with PESA | $2.000 | Price of ''Atlantic bundle'' | $4.000 |
In this case the Atlantic Computer company sticks to the tradition by charging only for the hardware, …show more content…

So the price of four Zink servers, $6,800 dollar, also equals 2 Tronn servers with PESA software. So the price of a Tronn server will be $3,400 dollar using the competition-based pricing. Customers will notice that there are no price difference anymore. The PESA software made the Tronn server attractive to a lot of customers but the software is not always working on all software applications. Customers than have to buy 4 Tronn server for twice the price of Zink servers. Customers would than consider not to buy the Tronn servers because they don’t see it as a fair price compared to the Zink servers.

3. Cost-plus pricing: Cost-plus pricing | Total sales number basic segement 2001-2003 | 21.180 | Total number of installations, using the attach rate of 50% | 10.590 | Cost of PESA per installation ($2.000.000/10.590) | $189 | Price of Tronn without PESA (Cost price with additional markup of 30%) | $2.000 | Price of Tronn with PESA (Cost price with additional markup of 30%) | $2.245 | Price of ''Atlantic bundle'' | $4.490 |
In this case the price is determent by calculating all the costs, fixed costs included, and spread all the costs out of all purchased items. In this case you have to determine the number of purchases. In table 1, it is been calculated. The total number of purchases in 2001 until 2003 is 21,180. Only 50% will use the PESA software, so about 10,590 units will carry the PESA software development cost of

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