Status quo pricing strategy

Year 1 Year 2 Year 3

Price Tronn $2,000 $2,000 $2,000
Price PESA $0 $0 $0
Sales Price $2,000 $2,000 $2,000
Market Share 50,000 70,000 92,000
Basic Server Market Projection % 4% 9% 14%
Basic Server Market Projection 2000 6300 12880
Sales Revenue $4,000,000 $12,600,000 $25,760,000

Cost/Tronn $1,538 $1,538 $1,538

Total Cost $3,076,000 $9,689,400 $19,809,440

Total CM $9,785,160
Initial Investment $2,000,000
 Competition based strategy
Year 1 Year 2 Year 3
Sales Price $6,800 $6,800 $6,800 4 times price of Zinc server ($1700)
Market Share 50,000 70,000 92,000
Basic Server Market Projection % 4% 9% 14%
Basic Server Market Projection 2000 6300 12880
Sales Revenue $13,600,000 $42,840,000 $87,584,000

Cost/Tronn $1,538 $1,538 $1,538

Total Cost $3,076,000 $9,689,400 $19,809,440

Total CM $111,449,160
Initial Investment $2,000,000
es price of Zinc server ($1700)
 Cost-plus pricing strategy
Year 1 Year 2 Year 3
Market Share 50000 70000 92000
Basic Server Market Projection % 4% 9% 14%
Basic Server Market Projection 2000 6300 12880
Total Sales 21180
Sales with PESA 10590 50% of total sal
Cost Tronn $1,538 $1,538 $1,538
Markup (30%) $461.40 $461.40 $461.40
Price Tronn $1,999 $1,999 $1,999
Cost of PESA 188.8574126534 188.8574126534 188.8574126534 2000000/Total PESA
Markup (30%) 56.65722379603 56.65722379603 56.65722379603
Price PESA 245.5146364495 245.5146364495 245.5146364495
Sales Price $2,245 $2,245 $2,245

Sales Revenue $4,489,829.27 $14,142,962.21 $28,914,500.52

Total Cost $3,076,000 $9,689,400 $19,809,440

Total CM $14,972,452.00
Initial Investment $2,000,000
 50% of total sales

2000000/Total PESA sales