ABC company is a consulting that offers a fool-proof pricing and revenue optimization service guaranteed to deliver 2 million in benefit to a customer. It costs them 500,000 to provide this service. They have a competitor in the market that provides a similar but inferior service that only delivers 1.5 million in guaranteed benefit. It also costs them 500,000 to provide this service.

???? Considering the competition, what price does ABC company need to charge in order to guarantee that they win the business? Assume that none of the companies will price below cost and that both of them know each other’s costs and the customer benefit in each case.

???? How would the ABC company price will change if the cost for the competitor is only 400,000 to provide their service?

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