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