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Atlantic Computer Pricing

The document compares 4 pricing options - traditional pricing charges $2,000 per Tronn server and $4,000 for a bundle, competitor pricing charges $1,700 per server up to 4 servers, cost-based pricing calculates the total cost of production and margins to set individual prices of $2,244.91 per server with PESA and $1,999.40 without, and value-in-use pricing shares estimated savings of $6,000 from using Tronn and PESA equally between the customer and company.

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59 views2 pages

Atlantic Computer Pricing

The document compares 4 pricing options - traditional pricing charges $2,000 per Tronn server and $4,000 for a bundle, competitor pricing charges $1,700 per server up to 4 servers, cost-based pricing calculates the total cost of production and margins to set individual prices of $2,244.91 per server with PESA and $1,999.40 without, and value-in-use pricing shares estimated savings of $6,000 from using Tronn and PESA equally between the customer and company.

Uploaded by

bikash08146
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
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Option 1: Traditional Pricing

Price of 1 Tronn server $2,000.00


Price of PESA $0.00
Price of bundle $4,000.00
*Assumptions
A customer will use 2 Tronn servers loaded with PESA

Option 2: Competitor based Pricing


Price of 1 Ontario Zinc Server $1,700.00
Price of PESA $0.00
Price of bundle $6,800.00
*Assumptions
Each customer will be charged equal to 4 Ontario Zinc servers and not charged for the PESA software

Option 3: Cost- based Pricing


Toal demand of Tronn Server 21180
Year 1 2000
Year 2 6300
Year 3 12880
Loaded with PESA 10590
Cost of producing Tronn server $32,574,840
Cost of PESA development $2,000,000
Cost per PESA sale $188.86
Cost per Tronn server $1,538.00
Cost per Server with PESA $1,726.86
Cost per Server without PESA $1,538.00
Including margin ->
Price of server with PESA $2,244.91
Price of server without PESA $1,999.40

Option 4: Value-in-use Pricing Gain sharing with customer (50:50)


Electricity saving 500 250
Liscencing 1500 750
Admin cost 4000 2000
Savings from using the Tronn and PESA 6000 3000
*Assumptions
4 Ontario Zinc servers and 2 Tronn loaded with PESA give equal performance

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