This client's request came to us sometime in the beginning of November with a program projection that MUST finish before December. With only a few weeks of preparation, the first thing to do was calculating the budget. Our first budget proposal was returned with a note: please give us a discount.
A discussion with the marketing team members was held. It was decided that, after cost cuts here and there, we would give more than a million worth of discount. I made the revision and sent the proposal. It was only a week away from the proposed schedule.
Again, it was returned. Again, with a note. It was a 'please give us a discount'. Again. Wow. This client started to get on my nerves.
Since my boss wanted to still give a discount, I played along with all the counting. Until it came up with an amount that was 400 thousand less than the second proposal's. After all the counting process ended, I told my boss. Wholeheartedly, straight to the point.
'Sir, can i express something?'
'Shoot.'
'Judging from the first amount of discount, we gave them a huge amount. More than a million. That's not small.'
My boss looked at my face expressionless-ly, as if he had known that what I was about to say could be more shocking than what I just mentioned.
'Secondly,' I continued. 'The time is short. The proposed date is next week. I am 60% sure that if we say we won't give them another discount, they'll hire us anyway. I am also pretty sure that we are the only choice the have now. There's no way they'll reject our proposal without discount.'
My boss still stayed silent.
Then I said,'Of course, it's gambling. We could get the project, or not. For me, if they say 'yes', we still have A LOT, and I mean a lot of preparation to do. If they say 'no', we have no burden to handle.' I stopped a while and then I said,'But then whatever you decide, I'll back you up 100%.'
My boss didn't say anything. So I left after taking care of other stuff with him.
A few minutes later, he called. He said he mentioned the discounted amount but the contact person heard him wrong. Instead of the 400 thou less of the original price, the client agreed on an amount that was only 100 thou less. ONE HUNDRED THOUSAND.
For a wealthy government institution, does 100 thou matter? We're not talking about ten, twenty or thirty million worth of project, by the way. It's more than 60 mil. The discount amount's close to nothing. I was and I am pretty sure now that if we had offered the final price without giving them any discount, the client would still accept the proposal.
Negotiating is gambling. Been there, done that. But even if I'm right at times, how come I don't feel like a winner?
A discussion with the marketing team members was held. It was decided that, after cost cuts here and there, we would give more than a million worth of discount. I made the revision and sent the proposal. It was only a week away from the proposed schedule.
Again, it was returned. Again, with a note. It was a 'please give us a discount'. Again. Wow. This client started to get on my nerves.
Since my boss wanted to still give a discount, I played along with all the counting. Until it came up with an amount that was 400 thousand less than the second proposal's. After all the counting process ended, I told my boss. Wholeheartedly, straight to the point.
'Sir, can i express something?'
'Shoot.'
'Judging from the first amount of discount, we gave them a huge amount. More than a million. That's not small.'
My boss looked at my face expressionless-ly, as if he had known that what I was about to say could be more shocking than what I just mentioned.
'Secondly,' I continued. 'The time is short. The proposed date is next week. I am 60% sure that if we say we won't give them another discount, they'll hire us anyway. I am also pretty sure that we are the only choice the have now. There's no way they'll reject our proposal without discount.'
My boss still stayed silent.
Then I said,'Of course, it's gambling. We could get the project, or not. For me, if they say 'yes', we still have A LOT, and I mean a lot of preparation to do. If they say 'no', we have no burden to handle.' I stopped a while and then I said,'But then whatever you decide, I'll back you up 100%.'
My boss didn't say anything. So I left after taking care of other stuff with him.
A few minutes later, he called. He said he mentioned the discounted amount but the contact person heard him wrong. Instead of the 400 thou less of the original price, the client agreed on an amount that was only 100 thou less. ONE HUNDRED THOUSAND.
For a wealthy government institution, does 100 thou matter? We're not talking about ten, twenty or thirty million worth of project, by the way. It's more than 60 mil. The discount amount's close to nothing. I was and I am pretty sure now that if we had offered the final price without giving them any discount, the client would still accept the proposal.
Negotiating is gambling. Been there, done that. But even if I'm right at times, how come I don't feel like a winner?
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