Jower's Charge Daytrader Mobile Case Summary
1. What price should Jowers charge DayTraderJournal.com for the Atlantic Bundle (i.e., Tronn servers + PESA software tool)? Be sure to evaluate status-quo pricing, competition-based pricing, cost-plus pricing, and value-in-use pricing.
Based on an evaluation of the four pricing options—status-quo, competition-based, cost-plus and value-in-use—we recommend that Jowers charge DayTraderJournal.com a price of $2934.00 for the Atlantic Bundle. In order to provide the sales team with the most flexibility, we will also offer a standalone price for the Tronn server only at $2000.00. Our recommendations are based on an assessment of the # points of relative differentiation between the Atlantic Bundle and its next best alternative, Ontario Computer’s …show more content…
How is Matzer likely to react to your recommendation?
We believe Matzer is likely to respond positively to the $2934.00 pricing strategy we have recommended for the following reasons: * The price point recoups Atlantic’s development costs of $2 million within the first three years * Atlantic has established a recognizable brand reputation for top-notch, highly reliable products and superior post-sales support. The premium price is consistent with these “intangibles” and further differentiates Atlantic from the Ontario in the basic server market since Ontario has chosen to compete exclusively on price. * This price point will generate an estimated $ $51,279,412.44 in additional revenue within the first three years, a portion of which could be dedicated to supporting Atlantic in extending and solidifying its brand in the basic server market. * Jowers has developed an identifiable target customer profile, businesses in the web-server and file-sharing application segments whose business model and technology requirements are a perfect fit for the PESA’s server performance optimization approach. With this segmentation in hand, Jowers will be able to target marketing messages to the unique needs of this target audience, gaining greater credibility and traction with the market as Atlantic looks to build its
Based on an evaluation of the four pricing options—status-quo, competition-based, cost-plus and value-in-use—we recommend that Jowers charge DayTraderJournal.com a price of $2934.00 for the Atlantic Bundle. In order to provide the sales team with the most flexibility, we will also offer a standalone price for the Tronn server only at $2000.00. Our recommendations are based on an assessment of the # points of relative differentiation between the Atlantic Bundle and its next best alternative, Ontario Computer’s …show more content…
How is Matzer likely to react to your recommendation?
We believe Matzer is likely to respond positively to the $2934.00 pricing strategy we have recommended for the following reasons: * The price point recoups Atlantic’s development costs of $2 million within the first three years * Atlantic has established a recognizable brand reputation for top-notch, highly reliable products and superior post-sales support. The premium price is consistent with these “intangibles” and further differentiates Atlantic from the Ontario in the basic server market since Ontario has chosen to compete exclusively on price. * This price point will generate an estimated $ $51,279,412.44 in additional revenue within the first three years, a portion of which could be dedicated to supporting Atlantic in extending and solidifying its brand in the basic server market. * Jowers has developed an identifiable target customer profile, businesses in the web-server and file-sharing application segments whose business model and technology requirements are a perfect fit for the PESA’s server performance optimization approach. With this segmentation in hand, Jowers will be able to target marketing messages to the unique needs of this target audience, gaining greater credibility and traction with the market as Atlantic looks to build its