Brian and Company is a consulting group that offers fool-proofpricing and revenue optimization Service guaranteed to deliver $2Min Benefit to a customer. It cost Brian and Company $550k toprovide this service. Unfortunately, they have a competitor,Dissenture that provides a similar, but somewhat inferior servicethat only delivers $1.5 M in guaranteed benefit. It also costDissenture $500k to provide this service. When competing withDissenture, what price does Brian and company need to charge inorder to guarantee that they win the business? Assume that neitherDissenture nor Brian and company will price below cost and thatboth of them know each other’s costs and the customer benefits ineach case. How would Brian’s price need to change if it only costDissenture $400K to provide their service?
