An 18% discount on the Harbour & Co three-year deal?
From Sam Taylor · 3 sourcesIn Sam's words
Can we give Harbour & Co 18% off the three-year deal? At 15% it goes to their board in February and we miss peak trading. I recommend 18%.
Why it matters
- Harbour's CFO can sign up to $400k a year before the budget lock.
- At 15% the price is $408k a year, so it goes to Harbour's board, which doesn't sit until February.
- At 18% the gross margin is 72%, above the 65% floor.
By the numbers
- a year at 18%, for 3 years
- $393.6k
- gross margin, floor 65%
- 72%
- their limit before the board
- $400k
Options
Hold at 15%: $408k a year, and it waits for Harbour's February board.
18% off (Sam's choice): $393.6k a year, and the CFO can sign it now.
The other side
- James Holt (Regional VP Sales) would hold at 15%. He says 18% sets a precedent for retail deals.