Client of mine is looking to renew for a multi year contract with an increase but wants the YoY to include no price increases.
My ELT isn't having it and is telling me to just stick to 1 year or elect a multi year with a % increase that equals the average 3 year flat the client is looking for. (The client won't I have explained this option already).
So we are looking at this:
Option 1: Total potential revenue if flat multi year ..... > 1MM
Option 2: Total potential revenue if 1 year ...... 1/3 of 1MM + a few grand
How would you approach this? As a entrepreneur in a side business I would take option one ALL day and twice on Sunday. Can someone explain why you would take option 2?
Keeping in mind year 2 and 3 are not guarantees it makes almost no sense to me.