Price Estimation

Traditional price per unit $2,000.00

Cost per unit $1,538.00
Profit per unit $462.00
 Price Estimation
Price of Zink server per unit $1,700.00
No of Zink Servers Required (Since 1 one tron along with PESA is equal to 4 Zink server performace) 4
Price of Tronn per unit $6,800.00
Cost of a Tronn Server $1,538.00
Profit per unit $5,262.00
Market Volume (units)
Estimated percentage of market Share of Tronn (from the foot notes)
Estaimated total units of Tronn sold

Price Estimation
Total estimated units solds
Total estimated sales of PESA (50% of all the basic server will have PESA in them, from the footnotes)
Rnd cost of PESA Software
Cost of PESA per unit server
Cost of Tronn Server per unit
Total cost of Tronn server per unit
Mark up of 30% on the total cost (from foot notes)

Price of Tronn per unit

Cost per unit
Profit per unit
 2001 2002 2003
50000 70000 92000
4% 9% 14%
2000 6300 12880

21180
10590
$2,000,000.00
$188.86
$1,538.00
$1,726.86
$2,244.91

$2,244.91
$1,726.86
$518.06
 Costs incurred per server by the customer
Electricity Cost $250.00
Cost of Application Lisence $750.00
# of servers an adminstrator can manage 40
Administrators annual salary for managing 40 servers $80,000.00
Administrators annual salary for managing one server $2,000.00

Cost incurred by the customers wrt to the servers (1 Tronn server equals to 4 Zink server)
1 Tronn Server
Electricity Cost $250.00
Cost of Application Lisence $750.00
Administrators Salary Yearly salary (wrt managing servers) $2,000.00

Total Cost for the customer $3,000.00

Price Estimation (With Conservative approach)

Difference in costs $9,000.00
Reducing the difference in costs by 50% (to be conservative as per footnotes) $4,500.00
Profit Sharing from the cost (50-50, from footnotes) (50% of the price difference) $2,250.00
Price of one Tronn server for the customer $2,000.00

Total Price of one Tronn server $4,250.00

Cost per server $1,538.00
Profit per server $2,712.00

Price Range of one unit of Tronn Server $4250 to $6500

Profit Range $2712 to $4962

Price of one unit of Tronn Server $6,000.00

Profit per server $4,462.00
4 Zink server)
4 Zink Server
$1,000.00
$3,000.00
$8,000.00

$12,000.00

Price Estimation (Without Conservative approach)

Difference in costs $9,000.00
Profit Sharing from the cost (50-50, from footnotes) (50% of the price difference) $4,500.00
Price of one Tronn server for the customer $2,000.00

Total Price of one Tronn server $6,500.00

Cost per server $1,538.00
Profit per server $4,962.00