The renewal they want 25% off

Procurement has your renewal and a competitor's quote. They opened with 25% off and went quiet.

You are

An account executive renewing a three-year analytics contract worth 180,000 a year.

The situation

Claire Whitfield from procurement at Northgate Logistics is calling about the renewal. The contract expires in six weeks. She has sent an email asking for twenty-five percent off the renewal rate. You know the account is healthy — usage is up — but their CFO capped software increases at twelve percent this year. Claire will not explain that unless you ask.

What you want out of it

Understand what she actually needs, improve the deal without gutting margin, and close — without negotiating against yourself in the silence.

What you already know

• — Current contract: 180,000 a year, expiring in six weeks.
• — Usage is up 20% year on year.
• — She asked for twenty-five percent off in writing.
• — Your floor without director approval is eight percent.

4 things they won't volunteer, 2 of them buried.