Atlantic Computers: a bundle of pricing options
1. Business of Telecommunications and Computer
The innovation of a room-size computer named ENIAC (Electronic Numeral Integrator and Computer) becomes a milestone in computer history as they initiate the further development of business in computer and telecommunication. Several decades later, the introduction of “0” and “1” stream in the digital technology also marks the development of computer technology with improved reliability and security.
In the early 1990s, James Martin in his crimson book, Telecommunications and the Computers, coined the ideas of integration of computer and telecommunication technology that become the basis for future communication. This may happen since telecommunication represents the development of infrastructure or hardware in communications; meanwhile the second term (computers) describes application and contents that enrich the delivery of services over the telecommunication infrastructure.
To continuously obtain benefits from the advancement of telecommunication and computers technologies, developers and manufacturers are racing to design, develop, manufacture, and sell the latest technologies that simplify the way users operate them. In this situation, the role of consultants that give advise for building the superior network system become important. Fortunately, nowadays, these days, the role of consultant become value added that computer retailers provide for their customers.
Concerning the issue, this paper will discuss about a computer retailer named Atlantic Computers in offering the bundle of pricing options to their customers. Bundle services become one marketing gimmick that enable a seller to offer multiple products with benefits discounted priced from the customers point of view.
2. Pricing Strategies: Bundling Services
Pricing is one marketing mix that determines the suitable offering to customers so that their products are considered affordable by customers without sacrificing the quality of products.
According to a pricing strategy, there are several critical steps in creating a winning pricing strategy; they are as following:
Defining the marketing strategy
Making the marketing mix decisions
Estimating the demand curve
Calculating costs
Understanding environmental factors
Setting price objectives and
Determine pricing policies (‘Pricing Strategy’, 2007).
Figure 1 Atlantic Computers Web SIte
3. Bundling Program for Atlantic Computers
Atlantic Computers (http://www.atlanticcomputers.com/) is an IT-related company that offers integrated services for their customers in selecting and implementing the simple to sophisticated network. In general, the company has one general group of services: internet services with strong and supporting sales and services.
Developing bundling program for a company that has multiple service or related service is much easier since the one product can be the complementary for others. However, in the case of Atlantic Computers the bundling program would be the selling of one main product with additional discount if the customers add additional features.
3.1. Internet Services
This main service of Atlantic Computer is the internet services in which the company sell not merely the hardware but also offer integrated services by offering several options and additional services to customers to accomplish the customers’ objectives in computer system. Another service included in this main product of Atlantic Computers is the customized built-in web site and a do-it yourself template that dedicated to experienced customers.
3.2. Sales and Services
This service from Atlantic Computer represent the company’s product in the provision of hardware and software solutions that dedicated for any level of users (experience and novice) including the dedicated server and dedicated email server.
3.3. Bundling Internet Services
In order to attract customer in buying the Atlantic Computers products and services, one key feature is to offer the internet services with additional services that enrich the customers’ needs. For example, if a single customer buys the web site design from Atlantic Computers for $1,000; they will have free web template. In addition, if the customers request for full services for only $2,000 they will have free one-stop-shopping that make the customer’s e-commerce site works such as the development of shopping cart features and BBS.
Reference:
Ferguson, Roger W. “Information Technology in Banking and Supervision.” Financial Services Conference. St. Louis University, St. Louis, Missouri. Retrieved March 3, 2009 from http://www.federalreserve.gov/boarddocs/speeches/2000/20001020.htm
Pricing Strategy. (2007). NetMBA. Retrieved March 1, 2009 from http://entrepreneurs.about.com/od/salesmarketing/a/pricingstrategy.htm