Sales Resolution for Deal Renegotiation
Background
Current Deal Status
As of [Date], [Your Company Name] entered into a sales agreement with the client for the provision of cloud-based software solutions. The deal's initial value was $[x] with an annual renewal fee of $[x]. This deal was significant in bolstering our market share and contributed to [x]% of our annual revenue. The contract was established with a three-year term and comprised several Service Level Agreements (SLAs) beneficial to both parties.
Need for Renegotiation
Due to significant changes in market conditions and the addition of new services by [Your Company Name], there is a necessity to renegotiate the existing sales agreement. Renegotiation aims to adjust the financials and terms in a manner that is mutually beneficial. The need for renegotiation also stems from a mutual interest in optimizing the partnership for the coming fiscal years.
Justification
Market Conditions
With a [x]% rise in competition, adapting our pricing strategy is essential to sustain market share. This competitive landscape has brought about pricing pressures that we cannot overlook. Therefore, our goal is to offer a revised, yet still competitive, price structure that will benefit both parties.
Enhanced Services
[Your Company Name] has added new features that add value to the client, justifying an increase in service fees. These enhanced services include advanced data analytics, improved system uptime, and 24/7 customer support. The new features aim to provide the client with a more streamlined and efficient operational process.
Objective
To renegotiate the existing sales agreement to better align with current market conditions and added service value. The purpose of this renegotiation is to preserve the integrity and profitability of the business relationship. The renegotiated terms will also set the foundation for potential future collaborations and partnerships.
Scope
This resolution encompasses alterations in pricing, service level agreements (SLAs), and contract duration. The scope is carefully designed to reflect market realities and the value addition from our newly enhanced services. All changes will be documented and attached as an addendum to the existing contract.
Terms and Conditions for Renegotiation
New Pricing Structure
Old Price | New Price |
$[x] | $[x] |
The new pricing reflects the added value and cost of enhanced services. It also takes into account market rates and the increased operational costs on our end.
Revised SLAs
Additional SLAs concerning response times and system uptime will be integrated. This includes guaranteed uptime of [x]% and a response time of under [x] hours for critical issues. These revised SLAs aim to provide more robust service to the client.
Contract Duration
Extension of contract duration from [x] to [x] months. This extension will provide both parties more time to realize the full benefits of this partnership. It also aligns with the long-term strategic goals of both organizations.
Implementation Plan
Timeline
The timeline sets achievable deadlines to ensure a seamless renegotiation process. Prompt execution is crucial to capitalize on current market opportunities.
Responsible Parties
Sales Team
Legal Team
Executive Board
The collaboration of these departments ensures that all facets of the renegotiation are covered, from legal compliance to aligning with business objectives.
Risks and Contingencies
Risk Mitigation
An exit clause will be incorporated for both parties in case of unforeseen challenges or market conditions. This will be balanced by penalties for early termination to safeguard our interests.
Contingency Plan
In case of non-approval, we will revert to the existing agreement, with the option to re-open negotiations at a future date. This ensures that we maintain a good relationship with the client while leaving the door open for further negotiations.
Approval Signatures
Sales Department:
(signature)
[Representative Name]
[Date]
Legal Department:
(signature)
[Representative Name]
[Date]
Executive Board:
(signature)
[Representative Name]
[Date]
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