B2B Pricing Strategy & Contract Negotiation Flashcards
6 cards from real B2B practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 6 B2B Pricing Strategy & Contract Negotiation flashcards as text
What is a Statement of Work (SOW) in a B2B contract?
Answer: A document specifying deliverables, timelines, and acceptance criteria for a specific engagement
An SOW defines the specific scope, deliverables, milestones, and acceptance criteria for a particular project under a broader MSA.
In B2B pricing, what does 'net 30' payment terms mean?
Answer: Payment is due within 30 days of invoice date
Net 30 means the buyer has 30 calendar days from the invoice date to remit full payment, a standard US B2B payment term.
What is the purpose of a Service Level Agreement (SLA) in a B2B contract?
Answer: To establish measurable performance standards and remedies if those standards are not met
An SLA specifies performance benchmarks such as uptime, response time, and resolution time, along with remedies like credits if benchmarks are missed.
Which negotiation tactic involves making a concession in one area to gain advantage in another?
Answer: Trading concessions or log-rolling
Log-rolling involves making a concession on a less critical issue to secure agreement on a higher-priority term, creating mutual perceived value.
What does BATNA stand for in B2B negotiation?
Answer: Best Alternative to a Negotiated Agreement
BATNA is the most favorable outcome a party can achieve if negotiations fail, and knowing it determines how far to concede before walking away.
Why is total cost of ownership (TCO) analysis important in B2B purchasing decisions?
Answer: It reveals the full lifetime cost of a solution beyond the initial purchase price, enabling accurate ROI comparison
TCO captures implementation, training, maintenance, and opportunity costs that make a lower-priced solution potentially more expensive over time.