The Challenge
A major defense contractor had been evaluating our endpoint security platform for nine months. The technical evaluation was complete and our champion was enthusiastic, but the deal had stalled at $800K due to budget committee pushback. The CFO wanted to see a phased approach that reduced first-year spend, and the procurement team was pushing for aggressive discounting.
The Approach
Instead of discounting, I requested a meeting with the CFO to understand the real budget concern. During the conversation I learned the CFO was not opposed to the spend — she was opposed to a single large line item in a quarter where they had already exceeded their IT budget forecast. She needed the deal structured differently, not reduced.
I proposed a three-year enterprise agreement that spread the cost more evenly across fiscal years, added a second division that had been considering a separate evaluation, and included premium support that our champion had wanted but could not justify as a standalone add-on. The restructured deal was actually larger — $1.2M over three years — but the first-year cost was lower than the original $800K single-year proposal.
The Objections
The procurement team initially resisted the multi-year structure, citing flexibility concerns. I addressed this by including annual opt-out clauses with minimal penalties and quarterly business reviews to ensure ongoing value delivery. The champion also helped by presenting internal metrics showing the cost of not deploying the solution — $200K annually in help desk costs and incident response for credential-based attacks.
The Result
The deal closed at $1.2M, a 50% increase from the original proposal. The multi-year structure gave us revenue predictability and the customer got a solution that covered two divisions instead of one. The account expanded to $2.1M over the next two years as additional divisions came online.
Key Takeaway
A stalled deal often has a structural problem, not a value problem. When the buyer agrees on value but cannot move forward, the solution is usually in the deal architecture — terms, timing, and scope — not in the price. Getting to the economic buyer to understand their real constraints is worth more than any discount.
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