Viktor: Claire, I’ll spare us both the warm-up. The board wants twenty percent off the renewal, or we go to tender.
Claire: That’s admirably direct, Viktor. Much as I’d like to say yes and catch the early train, twenty percent would put this contract below cost. That can’t be what either of us wants.
Viktor: What I want is a number my CFO doesn’t laugh at. Your competitors are hungry, and frankly, their pricing shows it.
Claire: They may well be cheaper on the headline rate. Even so, you’d be trading a four-hour response time for a next-business-day promise — and your own downtime figures suggest that difference paid for the contract twice over last year.
Viktor: Granted, the service has been solid. But solid is what I’m paying for. I need to show a saving, Claire. That part is not optional.
Claire: Then let’s build you one. We might be able to move meaningfully on price — provided that the term moves with it. Give me three years instead of one, and the picture changes.
Viktor: Three years is a long marriage in this market. I could conceivably sell twenty-four months upstairs, though I wouldn’t enjoy the meeting.
Claire: Twenty-four months, then — on the understanding that we index the price from year two. Whilst I can hold rates flat for a year, I can’t hold them flat through two budget cycles.
Viktor: Indexation is where deals go to die. Cap it. Whatever the formula says, I need a ceiling I can point to.
Claire: A cap could work — say, three percent. And however painful this is for me to offer, I’ll throw in the migration support you asked about in March. Sold separately, that’s a five-figure line.
Viktor: Now we’re negotiating. That said, I’m still short of a number that starts with a two.
Claire: And I’d rather be honest than optimistic: twenty isn’t reachable, whichever way we structure it. What I can defend is twelve — against a two-year term, the cap, and the migration package. Any deeper than that, and I’m past my walk-away point.
Viktor: Twelve. Hm. Admittedly, the package makes that easier to present than I expected. Should you get me one small win on payment terms, I might even present it with a straight face.
Claire: Sixty days instead of forty-five — but only on the renewal, not the migration invoice. Do we have the shape of a deal?
Viktor: We have the shape of one. Send me the term sheet tonight. And Claire — well played on the train you clearly never intended to catch.