THEIR LIKELY APPROACH

THE ANTICIPATED DIFFICULTY

COUNTER WITH A PACKAGE DEAL

THE PACKAGE: 1 - LONG TERM

THE PACKAGE: 2 - FAIR RATES

THE PACKAGE: 3 - SECURITY AND OPPORTUNITY

THE PACKAGE: 4 - OUR ACCOMMODATION

THE PACKAGE: 5 - THEIR ACCOMODATION

I anticipate Susan will take a hard approach in the negotiation.

She will probably try to establish an increased rate as an anchor point. She might justify this based on vague factors like "the economy" or "increased costs".

I need to respond with a very different deal to keep the negotiation from being a back-and-forth about a number.

A two-year requirement contract

Peg the cost to the current rate, adjusting for average industry standard calculated by a prearranged reference or formula.

This protects us from unreasonable cost increases, but allows FabriCorp to pocket the difference if they outperform.

We can be a little flexible on fulfillment to accommodate slack production...

...if they cover storage when there is excess. We know they probably have the warehouse space sitting idle to accommodate seasonal fluctuations.