Case Study
BBC vs. Info R Us

Dan Kelly works for Info R Us. He enjoyed his position as contract manager for the Big Bell Corporation (BBC) account. Info R Us was the subcontractor to BBC Network Systems who was the seller. BBC Network System had a mega-deal with the Chinese Government for new fiber-optic cables and wireless communications equipment across the country.

Dan had worked the contract for 3 years when it came time for a contract modification. As he prepared for the contract meeting, he sat down with the new sales manager from Info R Us, Bennie Edwards.

"Bennie, I know you've never dealt with BBC before, and I want to make sure that you understand what you're up against," Dan explained.

Bennie leaned back in the chair. "I don't think they'll be a problem. BBC wants us to deliver our new wireless equipment earlier and provide them larger discounts. I've done stuff like this in my sleep."

Dan leaned forward, "You don't know BBC. They want everything yesterday, and if you give them a centimeter, they'll take a kilometer." Dan handed a sheet of paper across the desk. "There are also some things that we need to get out of this contract change, so we have to remember that we have to hold out to support our negotiating position as well."

"You think I'm going to give away the company?" Bennie asked. "I have a little more experience than that."

"It isn't that at all," Dan responded. "I just want to make sure that you understand the whole picture." Dan ran through a little corporate history. "Over the past 3 years, we've learned that BBC seriously underbid the project and that they're straining to keep costs down. We also know that they don't plan extensively, and that's left them with higher costs than planned. They're constantly pushing us to give them larger price discounts