Q1. What price should Jowers charge daytradejournal for the Atlantic bundle (i.e. Tronn Servers + PESA software tools) under each of the following pricing strategies described in the case?
(i) Status Quo Pricing
(ii) Competition based pricing
(iii) Cost-plus pricing
(iv) Value-in use pricing.
(Assume that 2 Tronn servers + PESA equals the performance of 4 Ontario Zink servers)
Q2. What are the financial (i.e. Revenues and Profits) implications of each of the above pricing strategies over a 3 year period? Therefore which strategy would you recommend?
Q3. Finally, what objections would a customer like daytradejournal likely raise to your proposed pricing strategy? What responses can you provide for each specific objection they might raise?