Detailed BG on the deal is here.
Summary of Commercial Negotiations:
- This is a chain of 63 schools with 50k students, Last year -
- October/ Started with a quote of around 10k students (grades 9,10 only) for all 63 schools. Price quoted was $2.25/student. TCV = $23k
- October/ They came back saying that this pilot would only be for 20 schools now (grades 9,10 only) with 4300 students. Prices quoted by me was $2.5/student. TCV= $10750
- November 2023 / They came back with budget constraints. Said they've selected different set of 21 schools (grades 9 and 10 only) for this pilot, which has 2600 students. Price quoted = $2.5/student = $6500.
- Order form was signed for above price. We'd given them couple of relaxations:
- 4 admin licenses for Nov and Dec to design curriculum (free of cost), and
- Agreed to them making payment in January'24 (our standard is Net30 post signing OF)
- **Yesterday / Got an email saying they've designed their curriculum using licenses we provided. But they'd further need to reduce the student count for paid pilot to 1000 students. :@. CS slyly forwarded it to me.
We usually only do sitewide deals (full school/district signing up all at once). Because we are just starting to penetrate into international markets, and because this is a good logo from brand perspective, I got approval for doing this kind of a paid pilot deal for year 1.
I feel if I bow down, I will set wrong precedence. Though it's a paid pilot, they're going back on their word on an already signed order form, the relaxation of the payment terms provided, as well as the Free 4 admin licenses for Nov and Dec.
I've already been given commission on original $6500 deal last quarter. If I agree, my commish would further go down basis a $3000 deal now. It's less about the clawback on commission, more about not having a good gut feeling about this.
My idea was to upsell this deal end of this year from paid pilot to full-blown district-wide deal.
What do i do?
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