I Want a 30% Discount

A Сontractor has been successfully working and installing equipment for a very large client for a long time. There is a contract with volumes, costs, and terms set for the next three years. Unexpectedly, the entire top management team of the client company changes. The New CEO of the client demands a 30% price reduction or the termination of the contract.

The contractor doesn't want to lose this money-making client but is not prepared for such a significant price cut, as it would be unprofitable.

Pre-negotiation points:

Contractor: Wants to keep the client and is willing to compromise within reason but does not agree to a 30% price reduction.

Contractor’s Lawyer: Believes the price dispute is 100% winnable in court, as all penalties are thoroughly outlined in the contract.

New CEO of the Client Company: Wants to achieve his ambitions and prove to the Owner that he can deliver significant results quickly.

Owner of the Client Company: Interested in maintaining the schedule and quality of the equipment installation at his facilities. Does not intend to interfere in operational decisions but demands results from his managers.