K&R’s client closed for $1.6 to 2.1M more than they expected to, using K&R’s value principles.
Industry: Medium-sized Regional Bank
The transaction: Infrastructure software sale against competition
Revenue forecast before attending the K&R Workshop: $1.0M to $1.5M
Expected transaction close timeframe before attending the K&R Workshop: Year-end
Narrative: The competition offered our client similar software at a very low price (i.e., an “offer that they couldn’t refuse”). The client approached us asking for an additional discount on our price so they could justify a decision to buy our solution with their management.
Actual results: $3.1M
Actual closing timeframe: Third quarter. The entire process took 3.5 months, and the agreement was reached three months earlier than originally forecast.
K&R Tools and Techniques: We used the Negotiation Success Range™ (NSR™) to understand our best possible offer, and applied a Principled Concession™ to offer a 5% discount in exchange for a written commitment for additional software licenses over a five year period. The K&R Workshop emphasized the importance of keeping the team together and in agreement with the strategy and plan. We used the K&R Six Principles of Negotiation™ card as a reminder that “A Divided Team is a Costly Team”.