Atlantic Computers APO9

Abhishek Gupta 220103010

Akshit Aggarwal 220103026
Ayesha Sinha 220103045
Diksha 220103058
Kunal Kapoor 220101178
Prakhar Garg 220101184
Ritwik Choubey 220101092
 Q1. What price should Jowers charge for the Atlantic Bundle based on the following methods

Cost Plus Method

Status Quo
Pricing techniques
Competition based

Value Based
Pricing Methods Continued.....

Competition based Pricing

Considering conservative model where 2 Tronn = 4 Zinc servers
Price of Atlantic Bundle: Price of 2 Zinc Servers = 1700*2= $3400

Remark: In Status Quo the PESA software is for free

 Q2.How much money will be left on the table over a three year period if they were to give the
software tool for free compared to each of the 4 options above

Observation:
Money left on table will be maximum in value in pricing
Q3. How do you think Matzer is likely to react to Jowers’ proposal, and what could Jowers to do get
Matzer to agree to his proposal

Matzer is likely to have some reservations or concerns about Jowers' proposal of not selling the PESA
for free and instead using value-based pricing. The following proposals can be used to convince him:

The revenue generated using value based pricing is second highest

It would also help in reaching the break even point quickly:

Price: 4200
Cost: 1538
Contribution: 2662 (4200-1538)
BEP units: 752 (2000,000/ 2662)

It can showcase the customer how he/she is able to actually save money through calculations

Therefore, instead of giving away the PESA for free, it should be charged
Q4. What issues could Jowers face from the sales team for the proposal, and what can he to do
get the team to understand & sell the value of the PESA tool effectively?

The sales team could have trouble explaining the PESA tool's value proposition and how it would affect the
client's business to them.

It could be difficult for them to effectively explain the benefits and technical details.

The transition from a cost-plus pricing model to a value-in-use strategy could be faced with resistance from
the sales staff.

Jowers may solve this by setting up training sessions or seminars to inform the sales staff of the advantages
of the PESA tool and its value to the client.

He can give specific instances and numbers that illustrate the Tronn server's performance benefits and how
they benefit clients.
Q5. How do you think the target market may react to the new pricing proposal? What
issues/fears/objections could they have and what would you do to tackle these?

Customers may believe that the Tronn server is more expensive than similar products, making them
wonder if the improved efficiency and performance are worth the increased price.

To get around this, it's critical to thoroughly describe the advantages and distinctive features of the Tronn
server using the PESA tool.

Customers can better understand the value proposition and see the long-term benefits of investing in the
Tronn server by providing detailed information and examples from the real world, such as increased
productivity, significant cost savings, and a good return on investment.

Concerns regarding the initial price can be eased, and the long-term value proposition can be highlighted
by emphasizing the actual advantages and the beneficial influence on their company operations.