Industry: Small Asian Insurance Company
The transaction: Software Sale
Revenue forecast before attending the K&R Workshop: $450K (after expected 10% discount)
Expected transaction close timeframe before attending the K&R Workshop: Third Quarter
Narrative: We proposed a software solution that would help improve the service that our client could deliver to their customers. We have a long term relationship with the client, and we customarily give them a 10% discount on our original offering price. When we approach the end of a quarter (especially at year-end) we would sometimes offer an additional 2% – 3% discount with the hope of closing the transaction to meet our sales quota.
Actual results: $500K
Actual closing timeframe: We closed the transaction late in the day on the last day of the quarter.
K&R Tools and Techniques: The K&R Workshop taught us that “Negotiation is a continuous process” (one of the K&R Six Principles of Negotiation™) and that we had “trained” the client to expect a 10% discount and to wait until the last day of the quarter anticipating additional discounting. The Workshop showed us how to use the K&R Value Matrix™ to sustain our price. This was the first time that we did not discount the offering price with this client to the amazement of our management.