Atlantic Computers CAN
1. Convey the pricing strategy that would optimize value capture for Atlantic along side describing any implementation issues. Also, an explanation of the adoption of any alternate pricing strategy, thereby deviating from an already established tradition in the industry, if the case maybe.
2. Sketch out a plan to get the Division’s sale force to charge for (and not give away) the PESA. What would be the recommendation to get Cadena’s hardware-oriented sales force to understand and sell the value of the PESA software tool effectively?
3. Address and anticipate the competitor’s, Ontario’s, likely reaction when Tronn sets foot in the market to compete with their Zink in the basic need.
Atlantic computers –
Large manufacturer …show more content…
competition based pricing – Will lead to losing out on profit margin on sales of Tronn and also there is uncertainity for the customers to shift their brand loyalty fro Zink to Tronn without any perceived benefit for the same as far as price is concerned and taking short-term investment gain. Although highlighting better after sales service might lure the customers to Tronn’s side since they have a reputation for the same. cost-plus pricing – include all direct, indirect and fixed costs (relating or non-relating to production and sales) to the total cost incurred and take the average cost by dividing by the total number of products. Add a preset profit margin and a markup to this cost to determine selling price. Will lose out on sales to Ontario because in the short term investment, Ontario looks more lucrative to the buyer based solely on price. value-in-use pricing – demonstrate savings to customers by comparing buying 1 Tronn server to buying 4 Ontario Zink servers and comparing operational costs associated with HP servers. Also, highlight the importance of the utility and need being met in more efficient
1. Convey the pricing strategy that would optimize value capture for Atlantic along side describing any implementation issues. Also, an explanation of the adoption of any alternate pricing strategy, thereby deviating from an already established tradition in the industry, if the case maybe.
2. Sketch out a plan to get the Division’s sale force to charge for (and not give away) the PESA. What would be the recommendation to get Cadena’s hardware-oriented sales force to understand and sell the value of the PESA software tool effectively?
3. Address and anticipate the competitor’s, Ontario’s, likely reaction when Tronn sets foot in the market to compete with their Zink in the basic need.
Atlantic computers –
Large manufacturer …show more content…
competition based pricing – Will lead to losing out on profit margin on sales of Tronn and also there is uncertainity for the customers to shift their brand loyalty fro Zink to Tronn without any perceived benefit for the same as far as price is concerned and taking short-term investment gain. Although highlighting better after sales service might lure the customers to Tronn’s side since they have a reputation for the same. cost-plus pricing – include all direct, indirect and fixed costs (relating or non-relating to production and sales) to the total cost incurred and take the average cost by dividing by the total number of products. Add a preset profit margin and a markup to this cost to determine selling price. Will lose out on sales to Ontario because in the short term investment, Ontario looks more lucrative to the buyer based solely on price. value-in-use pricing – demonstrate savings to customers by comparing buying 1 Tronn server to buying 4 Ontario Zink servers and comparing operational costs associated with HP servers. Also, highlight the importance of the utility and need being met in more efficient