# Case: 60 days and 20% off > Veloria's procurement asks for 20% off and 60 days to pay. Work out what each costs Klasna, then answer with a counter-offer that trades instead of gives. - Course: [B2B Marketing and Sales: Win Your First Company Customers](https://productovi.com/courses/b2b-marketing-and-sales.md) - Module: Proposal and price - Lesson 24/32, ~39 min - Source: https://productovi.com/courses/b2b-marketing-and-sales/sixty-days-twenty-percent-case ## The procurement letter **Alex Tutor:** This module built a quote from the buyer's economics, an ROI case for Yaryna and the arithmetic of discounts. Yaryna approved the budget. Now Veloria's procurement lead has written. **Marta:** Her terms: 300 lessons a month for twelve months from March, 20% off, so 640 a lesson, quarterly invoices and 60 days to pay instead of 30. She wants an answer this week. **Pavlo:** Don't panic, it's how she opens. With the safety course last year she compared three offers and asked everyone for a big cut. Her job is to show a saving. **Alex Tutor:** Before the numbers, read the letter for what it is. > **Exercise:** **True or false:** Veloria's procurement lead opened with 20% off, 60 days and an answer "this week", so the deal is at risk unless Klasna accepts quickly. **Sofia:** It's our biggest deal ever. Maybe we accept and make it up later? **Alex Tutor:** Discounts are hard to take back. Look at the two files first: our price sheet with its approval levels, and her request next to our standard terms. **Dataset (CSV):** [Klasna for Teams price sheet: discount levels and approvals](https://productovi.com/datasets/b2b-marketing-and-sales/sixty-days-twenty-percent-case/b2b-teams-discount-tiers.csv) One row per discount level, UAH per lesson. List price 800; tutor 430 and video and AI 31 are Klasna's costs per lesson. A level applies only from min_lessons_per_month and only with the give in give_required. - `discount_pct`: Discount off the list price, % - `price_per_lesson_uah`: Price the client pays per lesson - `min_lessons_per_month`: Minimum monthly volume for this level - `approver`: Who must approve: account owner, head of Teams (Marta), CEO and head of finance (Leo and Hanna), or not offered - `give_required`: What the client must give in return **Dataset (CSV):** [Veloria's request and Klasna's standard terms](https://productovi.com/datasets/b2b-marketing-and-sales/sixty-days-twenty-percent-case/b2b-veloria-request.csv) One row per term: what Veloria's procurement asks for and Klasna's standard. Empty where Klasna has no standard. > **Exercise:** Use the price sheet. Each lesson costs Klasna 430 UAH for the tutor and 31 UAH for video and AI. At the requested 20% discount, how many **more** lessons (in %) would Veloria have to buy for Klasna to keep the same contribution? Round to two decimals. ## What 20% really costs **Alex Tutor:** At 640 we keep 640 − 461 = 179 a lesson instead of 339. To earn the same, Veloria would need 160 ÷ 179 = 89.39% more lessons: about 568 a month instead of 300. **Pavlo:** We have forty people who need English. Nobody's going to double their lessons. **Marta:** So at the same 3,600 lessons a year, we'd earn 644,400 instead of 1,220,400. That's 576,000 handed over for nothing in return. **Alex Tutor:** Put Marta's point in one number for the year. > **Exercise:** Veloria will buy **3,600** lessons a year whatever the price. At 800 UAH Klasna keeps **339** a lesson; at 640 it keeps **179**. How much contribution a year would the 20% discount give away, in UAH? **Sofia:** And the price sheet says 20% isn't offered at all. The most we have is 10%, and that needs prepayment. > **Exercise:** Klasna's money costs an assumed 24% a year. At list price, a quarterly invoice is 900 lessons × 800 UAH. How much do **30 extra days** of payment terms on one such invoice cost Klasna? Round to the kopiyka. ## What 60 days costs **Hanna:** Use 24% a year as what our money costs, our credit-line rate. It's an assumption, so say so. Anything beyond 30 days needs my OK anyway. **Alex Tutor:** A quarter at list price is 900 lessons, a 720,000 invoice. Thirty extra days: 720,000 × 0.24 × 30 ÷ 365 = 14,202.74 a quarter, 56,810.96 a year, 15.78 a lesson. **Sofia:** And both together? 20% off and 60 days? **Alex Tutor:** On a 640 lesson, 30 extra days cost 12.62 more. The cut becomes 172.62, we keep 166.38, and the volume needed is 172.62 ÷ 166.38 = 103.75% more. More than double. > **Exercise:** At 800 UAH Klasna keeps 339 a lesson (tutor 430, video and AI 31), and its money costs an assumed 24% a year. Which statement about Veloria's full request (640 a lesson **and** 60 days instead of 30) is correct? ## A counter-offer that trades **Alex Tutor:** Now use the sheet. Veloria wants 60 days, the opposite of prepayment, so the 10% level is out. What can we trade? **Alex Tutor:** Check the 10% row before Marta answers. > **Exercise:** Use the price sheet. Veloria buys 300 lessons a month and asks for 60 days to pay. Why can't Klasna offer it the 10% level? **Marta:** Option A: list price 800, 60 days on quarterly invoices, for a firm twelve-month commitment. Costs us 56,810.96 a year. Option B: 760, our usual 30 days, twelve months plus a reference. Costs 144,000. **Sofia:** Option A is cheaper for us, and it gives her a real concession to report. Why offer B at all? **Alex Tutor:** Because her saving may have to be on the price line. Both options are inside our rules and both trade something. Let her choose which one Veloria values more. > **Exercise:** Which counter-offers stay inside Klasna's price sheet and trade something real? Select all that apply. ## Saying no to 20% **Sofia:** Can I tell her our CEO would never sign 20%? It sounds firmer. **Alex Tutor:** Only what's true: 20% isn't something we offer, and here's what we can do and why. No invented boss, no «valid until Friday». She negotiates for a living; she'll respect a clear rule. **Pavlo:** Please copy me. If she says no to both, I'd rather hear it from you than from her. **Marta:** Good. Keep Pavlo informed, and never go around him. **Alex Tutor:** Pick the line you'd actually send. > **Exercise:** How should the reply to Veloria's procurement decline the 20%? > **Exercise:** Write the reply to Veloria's procurement lead (3–5 sentences, Pavlo in copy). Decline the 20% honestly and offer options A and B. A: the list price of 800 with 60 days on quarterly invoices, for a firm twelve-month commitment. B: 760 (5% off) at the standard 30 days, for twelve months and a reference. ## Your memo to Marta **Marta:** Before anything goes out, give me one memo: what the request costs us, the counter-offer, who approves it, and what we watch afterwards. **Sofia:** Should I mention the cash side? Quarterly invoices at 60 days mean we wait a long time for money. **Hanna:** Yes, one line. Its full effect belongs in my cash plan, and I'll check it before I approve the terms. **Alex Tutor:** Numbers first, then the trade, then the words. Every figure should be one Marta can check in the two files. > **Exercise:** Write Marta a memo on Veloria's request for 20% off and 60-day terms. > **Key ideas** > > - 20% off 800 leaves 179 of contribution instead of 339: the deal would need 160 ÷ 179 = 89.39% more lessons, or lose 576,000 a year at the same volume. > - 60 days instead of 30 is a hidden discount: at an assumed 24% a year, 14,202.74 a quarter, 15.78 a lesson. Both requests together need 103.75% more volume. > - Answer with trades from the price sheet, not with a lower number: keep 800 and give 60 days for a twelve-month commitment, or 760 at 30 days for twelve months and a reference. > - Say no honestly: state the rule and what you can do. Keep the champion informed. **Alex Tutor:** Whichever option she picks, write it into the contract exactly. A concession that lives only in an email gets renegotiated at renewal. - Previous lesson: [Discounts and give–get trades](https://productovi.com/courses/b2b-marketing-and-sales/discounts-and-give-get.md) - Next lesson: [Do we need partners?](https://productovi.com/courses/b2b-marketing-and-sales/do-we-need-partners.md) --- Productovi Learning. Free, no sign-up needed to read.