Practice interviews

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.

Annual commercial packet
Dollars
List contract100000
Variable delivery cost60000
Requested price reduction15000

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.”

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.”

What a strong candidate could say

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.”

What a strong candidate could say

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.”

What a strong candidate could say

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.”

What a strong candidate could say

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