Upload
rucha
View
216
Download
2
Embed Size (px)
DESCRIPTION
Atlantic Inc Group6 Working
Citation preview
COSTS INVOLVED IN A BASIC SERVER COST OF PESA TOOLElectricity 250 R&D cost incurred Cost of license 750No of servers per admin 40 Basic server marketAnnual salary 80000 Expected market shareCost per server for admin 2000 Market for Atlantic Basic server
Cost per server
Expected market share for Tronn + PESA (50% attach rate)
COST OF PESA TOOL2000000
2001 2002 2003 Total in 3 years50000 70000 92000
4% 9% 14%2000 6300 12880 21180
1000 3150 6440 10590189
OPTION 1 : PRICE WITH PESA AS FREE
Price Cost Profit MarginTronn without PESA 2000 1538 462 30%
Tronn with PESA 2000 1727 273 16%
COST INCURRED BY CUSTOMERprice 2000Electricity 250License 750Admin cost 2000Total cost in a year 5000
OPTION 1 : PRICE WITH PESA AS FREE
OPTION 2 : COMPETITIVE PRICING BASED ON ZINK
1 Tronn server with PESA = 4 Zink servers
Cost of Zink server 1700Cost of four since servr 6800
COST INCURRED BY CUSTOMER1 TRON SERVER
Electricity 250License 750Admin cost 2000price 6800Total 9800
OPTION 2 : COMPETITIVE PRICING BASED ON ZINK
OPTION 3: COST PLUS PRICING
Cost per serverTronn without PESA 1538
Tronn with PESA 1538 + 189 = 1727
OPTION 3: COST PLUS PRICING
Markup price (@30%) Profit2000 4622245 519
OPTION 4 : VALUE BASED PRCING USING CONSERVATIVE DATA
CONSERVATIVLY 2 TRONN SERVERS = 4 ZINK SERVERS
OPTION 4 : VALUE BASED PRCING USING CONSERVATIVE DATA
CONSERVATIVLY 2 TRONN SERVERS = 4 ZINK SERVERS
Conservative Assumption: 2 Tronn server = 4 Zinc serversCost break up 2 Tronn servers 4 Zinc serversOriginal Price 4000 6800Electricity 500 1000License 1500 3000Total Cost 6000 10800Savings 4800Final price (Original price + 50% of savings) 6400Margin (6400 - 1727)/1727 = 270%
Assumption: 1 Tronn server = 4 Zinc serversCost break up 1 Tronn servers 4 Zinc serversOriginal Price 2000 6800Electricity 250 1000License 750 3000Total Cost 3000 10800Savings 7800Final price (Original price + 50% of savings) 5900Margin (6400 - 1727)/1727 = 240%