Negotiation · strategy stress test

Concede, hold, or restructure the deal

Your largest customer wants 10% off at renewal. You can concede, hold your price, or offer a volume-tied structure instead. They can accept, push, or switch suppliers.

Switching suppliers costs them time. How much time is the whole question: a customer who could switch in a month is a different counterpart from one who would need a year.

You (supplier) versus Your largest customer. Payoffs are modeled, not measured.

Your opening moves

• Concede the 10%. Give the discount and keep the account.
• Hold the price. Decline the discount and let them decide.
• Offer a volume-tied structure. Tiered pricing that reaches their 10% at a volume commitment.

The assumption you control

Months it would take the customer to switch suppliers. The rehearsal shows the value at which the best opening move changes. Twist: The customer qualifies a second source.

Concepts at work: Bargaining Game, Ultimatum Game. See the glossary and all rehearsals.