A 15% discount for “signing soon.” What do you trade?
A Quayline buyer requests 15% off a $100,000 annual contract. “We will try to sign this month” is the only commitment.
The question
Use annual revenue and variable delivery cost only. Fixed costs and taxes are outside this authored exercise.
| Dollars | |
|---|---|
| List contract | 100000 |
| Variable delivery cost | 60000 |
| Requested price reduction | 15000 |
Delivery scope and variable cost do not change under the requested discount.
“Calculate the effect on contribution, identify what you can trade, and propose a credible response.”
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A strong answer, step by step
Open each step in turn. This is one strong answer, not the only one.
Step 1: Calculate the price
What would you do here? Open the move you’d make.
Calculate the requested revenue
The strong move. The reduction applies to the stated contract price.
Apply the reduction to the delivery-cost base
Tempting, but it misses something. The buyer asked for a price discount, not a lower delivery cost.
See how a strong candidate says it
“The buyer requests a $15,000 reduction, leaving $85,000 annual revenue. Delivery cost stays $60,000.”
Why it works: The reduction applies to the stated contract price.
Step 2: Expose the contribution trade
What would you do here? Open the move you’d make.
Use the price-discount rate as the contribution impact
Tempting, but it misses something. Applying the price percentage to contribution understates the effect.
Show the 37.5% contribution loss
The strong move. The cost base makes the commercial consequence visible.
See how a strong candidate says it
“Contribution falls from $40,000 to $25,000, a $15,000 or 37.5% drop. A 15% revenue discount is a much larger share of contribution.”
Why it works: The cost base makes the commercial consequence visible.
Step 3: Ask for a real exchange
What would you do here? Open the move you’d make.
Trade against a verified commitment
The strong move. A concession should buy something concrete and authorized.
Offer the reduction to create signing urgency
Tempting, but it misses something. The phrase “try to sign” carries no enforceable date or cleared approval.
See how a strong candidate says it
“I would ask what prevents signature and whether scope, payment terms or a longer commitment could support a different offer within our approval rules. A hope to sign is not a completed approval.”
Why it works: A concession should buy something concrete and authorized.
Step 4: Keep the approval boundary
What would you do here? Open the move you’d make.
Promise the discount now
Tempting, but it misses something. The packet gives no authority to grant the requested reduction.
Document the conditional offer
The strong move. The seller must be able to honor the offer.
See how a strong candidate says it
“I would take a written, conditional proposal through the discount owner, with scope, payment and approval dates explicit. If no reciprocal value exists, I would defend the current price or reduce scope.”
Why it works: The seller must be able to honor the offer.
The answer, in short
- Decision
- Do not exchange $15,000 for a vague intention.
- Because
- The concession removes 37.5% of contribution while leaving cost unchanged.
- What would change it
- A verified reciprocal benefit and authorized offer could justify a different price.
Common traps
- Calling the contribution loss 15%.
- Inventing approval authority to save the conversation.
Check your answer
- Did you calculate $85,000 revenue?
- Did you calculate $25,000 contribution and a 37.5% reduction?
- Is the buyer’s commitment concrete?
- Is the offer within an approval boundary?
Last reviewed Nov 10, 2026