Beruflich Dokumente
Kultur Dokumente
GROUP1- SEC H
OPTION 1: Stick with company tradition by charging only for hardware and giving PESA free.
PRICE
2000
COST
1538
PROFIT
462
COMPETITORS
1700
S PRICE
In this case, as the company is not charging for PESA, which costs it $2,000,000, so it will take
more than a year to break-even. Also, since the product provides savings in cost to customers at
2 levels, higher price can be charged to break even early and earn more profits.
OPTION 2: Competition based Pricing. Price equal to what customer would pay for 4 Ontario
Zink servers.
Recommended
Price
Conservative
3400
Aggressive
6800
50,000* 4% =
2000
70,000* 9% =
6300
92,000* 14%
=12,880
21,180
2,000,000
189
1538
1727
518
2245