Client secured total annual business from key customer at enhanced margin level in the face of cheaper competition to the value of over $5m.

The Client  

Total Negotiation Group’s client is a global manufacturer operating in more than 50 markets.

Their Challenge 

The client had been challenged to dramatically reduce their price to a long-term customer or risk losing all the business. The threat was borne from the emergence of cheaper local competition vying to supply the same customer. Accepting the pricing demand would have eliminated any margin.  The client could see no alternative to accepting the price decrease demand. 

Objectives of the engagement 

The client sought support from TNG on creating alternatives in engaging with their customer to retain the key business. 

The solution 

Prior to the price decrease demand, the client commercial team had taken part in an advanced negotiation skills workshop with follow up commercial coaching and hotline support. This meant that they could build and deliver a strategy, which not only secured but improved their position. Direct access to Total Negotiation Group’s expertise enabled them to check and to strengthen their approach at every stage.  They explored their power and the true power of their competition and leveraged this to win the deal. 

Outcome 

The client secured an 18-month contract for all the business. The customer involved is now one of their largest in sales and margin contribution.   

‘Persistence and a good strategy with a firm position and a tight timeline during negotiation won the business valued at over $5M annually’ 

Future 

Total Negotiation Group continue to support this client with individual negotiations through their support and further capability build programs are planned.