HBC Atlantic Computer - Case Study Example

Answer Jowers should charge $6538 for Atlantic Bundle. It would mainly comprise of basic price of Tron $2000 + Cost of PESA $2000 + $1538 cost per server. Answer 2 Matzer would appreciate the price structure as it would not only deliver revenue for the company but also gives value to the customers by saving huge recurring cost on extra servers as required by the customers. Indeed, customers like DayTraderJournal.com as their complex net based applications would require more than 2 Ontario servers which a single Atlantic bundle is able to serve.

Answer 3 Cadena’s sales force may not initially react favorably to Jowers’ price structure as the bundle cost cost also includes the cost of software which they previously gave free along with hardware. Answer 4 Jowers price structure is mainly based on value-in-use pricing that heavily relies on the differentiation as provided by the PESA software that significantly enhances performances of the serveres. Jowers must empower the Cardena’s hardware oriented sales force with relevant information regarding the importance of PESA software so that they can use this differentiating element as their major sales principles to convince their customers.

For example, DayTraderJournal.com would need at least 4 Ontario server costing overall $11656 [(basic price of $1700 + $1214 cost per server)*4]. Thus, by buying Atlantic package, company would be saving around 50% of the initial expenses on servers and $3642 of annual recurring cost on 3 servers every year.Answer 5 The target market would react favorably because they would be hugely saving on not only the servers but also the annual expenditures incurred on running the servers. The Atlantic bundle is cost saving because it does the work of 4 Ontario servers, thereby saving extra cost on 3 servers.

Moreover, the customers would also be enjoying the exemplary after sales services of Atlantic for which it has already established market credibility.(words: 317)ReferenceAs provided.