In B2B, the marketing mix is decided at account and relationship level, not only at offer level.
In B2B, the marketing mix is decided at account and relationship level, not only at offer level. List price, discount, integration, support, sales channel, proof and renewal terms form one economic contract. A larger agreement can show more revenue while creating less value than a smaller, better-priced account that costs less to serve.
Decision and method.
Accept, renegotiate or refuse a contract based on expected contribution, service cost and renewal risk rather than headline revenue. Start from the tariff, deduct every monetary concession and value unfunded commitments; sales, finance and operations must share the calculation. Assign costs that disappear if the contract is not signed: acquisition, integration, infrastructure, support and particular governance. Project each future year separately with its margin, probability of presence and expansion costs; do not mechanically multiply ARR by an average duration. Vary volume, discount, support load, payment terms and renewal; negotiate first the clause that reverses contribution.
Worked example.
Atlas signs €120k annually with an 18% discount, first-year cost €53k and annual renewal probability 82%. Boreal signs €105k, costs €44k in year one and renews at 90%. Atlas net price is €98.4k; expected three-year contribution is 45.4 + 68.4 × 0.82 + 68.4 × 0.82² = €147.5k. Boreal gives 61 + 75 × 0.90 + 75 × 0.90² = €189.3k. Atlas should be renegotiated on discount, integration or support before it is treated as the more valuable account.
Checks and limits.
Convert every concession into comparable economic value; separate account-specific from genuinely fixed costs; weight every future contribution by an explicit probability; renegotiate the clause with the greatest economic regret. Historic renewal probability may not inform a new offer or segment. Reference value, learning or market access can justify a less profitable contract only when quantified separately. The model does not replace legal, credit or customer-concentration risk assessment.
Resources and sources.
Download the B2B contract-economics model. Related: build negotiated pricing, calculate contribution by offer, link SaaS acquisition and retention. Sources: Anderson, Narus and van Rossum (2006); Nagle, Hogan and Zale (2016); Reinartz and Kumar (2000).