Oil Co - Drop your price
RW - No we have a valid and very nice contract
Oil Co - Ok you are hereby served 90 days notice as per that contract
RW - Ok if we take our pants down can we get an extension at a lower rate
Oil Co - Maybe.
It doesn’t a work as simply as that. Negotiations during a tender phase can be tough. But once the contract is signed it’s actually strong for both parties and normally prevails. The rules around asking for a discount are very complex. To threaten termination to get a discount would be unheard of in any company with which I have had an association.
I have seen price escalations in the downturn because they were in the contract, I have seen contractors, not just aviation, hold the line on prices when under a contract with no threats or bullying. Do a good job as per contract and most importantly know the customer and what they want.