License Overages vs Reshaping existing contract
Hi - After some advice if possible, please :)
My customer, due to commercial constraints and the EB losing faith in the value my solution provides halved their license size at renewal in Jan 23.
Since then, we have been invited to "sell your solution to us again" and are about to kick off a PoV that will undoubtedly add value above and beyond anything we have done with them before.
However - Since they halved their license, they have consistently burst their usage limit, and in turn have overaged to the cost of around $100k. Typically, if a customer is working with us in good faith to address these overages (which this customer is doing), we won't take any immediate action and automatically bill the customer, but it will need to be addressed.
How would you approach this conversation with the EB? Before kicking off the PoV I want to be clear that the overage costs need to be factored into the reshaping of a new contract (with the new solution being PoV'd) as well as address their need to uplift the contract to ensure the overages don't continue moving forward.
My take on it is, that they are going to need to pay the overage difference + the required uplift to bring them into a compliant contract anyway, and they may as well, if the PoV is successful, use the required true up to fund the new products that we are offering.
I want to ensure that the EB and I are clear on the path forward and that we are collectively working on doing a deal at their next renewal in Jan 24 (or sooner) based on these factors.
Curious how you would articulate this conversation to convey that while we are focused on delivering outcomes that will positively impact their business, the customer needs to understand that they have to spend some money.
Thanks, and sorry for rambling on.