Question #1) What price should Jowers charge DayTraderJournal.com for the Atlant ic Bundle (i.e.

, Tronn servers+PESA software tool)? 1) Under the status-quo pricing, Jowers should chard $4000 for the Atlantic Bund le. 2) Under the competition-based pricing, $6800 should be charged for the Atlantic Bundle. 3) Under the cost-plus pricing, $4491.04 should be charged for the Atlantic Bund le. 4) Under the value-in-use pricing (maximum value), $12800 should be charged for the Atlantic Bundle. 5) Under the value-in-use pricing (shared value), $8400 should be charged for th e Atlantic Bundle. Question #2) Think broadly about the top-line revenue implications from each of the four alternative pricing strategies. Approximately how much money over the n ext three years will be left on the table if the firm were to give away the softwa re tool away for free (i.e., status quo pricing) versus utilizing on of the othe r pricing approaches? 1) 2) 3) 4) 5) The The The The The revenue revenue revenue revenue revenue from from from from from status-quo pricing will be $42,360,000. competition-based pricing will be $72,012,000. cost-plus pricing will be $47,560,113.60. value-in-use pricing (maximum value) will be $135,552,000. value-in-use pricing (shared value) will be $88,956,000.

The most advisable recommendation would be to sell the Atlantic Bundle at the co st-plus pricing approach of $4491.04. This is advisable for several reasons. T he first being that although the revenues are the highest from value-in-use pric ing approach, this pricing is significantly above what customers are currently p aying. Since customers are paying $6800 for the competitors servers a payment of $12800 for our servers would be too steep of an increase. In addition, sinc e we are marking up our products at 30%, we will guarantee a profit of at least 30%. Lastly, pricing our... Implementation Plan Short Term Convince Matzer to adopt new pricing strategy Train Sales Staff - 2 weeks training - Focus on the value of the server to the customer - Performance especially with the PESA software tool - Emphasize on the lower acquisition, and possession costs - Ensure excellent after sales service for customers Maintain Customer Lifetime value - customer loyalty programs - customer referrals R&D Dominate as market leader Presentation at trade show (emphasize value to customer)