The Atlantic Bundle

Topics: Pricing, Computer software, Application software Pages: 4 (1461 words) Published: November 6, 2012
CompQuestion 1: What price should Jowers charge 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, the Tronn server, and give the PESA software for free. This means that the selling price of $2,000 dollar per server remains. The Atlantic Computer company will use the margin of 30% to pay back the development cost of the PESA software. The price of the ‘’Atlantic bundle’’ would be in this case $4,000 dollar. The margin of the Tronn will decrease. It is also possible that in this case it would appear that there are no difference between the Tronn server of Atlantic Computer and the Zink server of Ontario Computer. Customers will think that they still need to buy 4 Tronn servers to compare with 4 Zink servers, and buy Zink servers because they are with a price of $1,700 still cheaper compared to the Tronn server.

2. Competition-based pricing:
Competition-based pricing|
Price of Zink server (from Ontario Computer)| $1.700|
Price of 4 Zink servers (from Ontario Computer)| $6.800|
Price equalt to 2 Tronn servers (from Atlantic Computer)| $6.800| Price of Tronn server (from Atlantic Computer)|  |  |  | $3.400| Price of ''Atlantic bundle''| $6.800|
In the case of the competition pricing you will use the price of competitors to determine which sales price you are going to use. The price of the Zink server...
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