A home security systems manufacturer rescued an important OEM deal with 23% price increase.

A home security systems manufacturer asked AVS to help on a critical customer negotiation where the customer was resisting a price increase, and threatening to find another supplier. The manufacturer was originally selling the equipment as a mature product line to an OEM customer at a slim margin. With the declining US dollar, the small profit gradually turned into a small loss. When the manufacturer advised the OEM customer that they would need to raise the unit price by 10%, the customer balked and threatened to find another supplier. AVS was able to assess the situation, identify the leverage points that the manufacturer needed to use, and recommend a game plan. The manufacturer followed the plan and the customer reacted exactly as AVS said they would. With AVS acting as an advisor and mediator, the manufacturer closed the business deal at 23% above the previous price point and got the customer to make a commitment to double their volume. More importantly, by using the strategy we outlined, the client strengthened the relationship with the OEM customer.