Abstract
The case narrates a typical business-to-business scenario wherein the customer (Bodha Constructions) calls for a fresh tender for the water heater supply. Universal Heater Industries (UHI), the current vendor, has won the price agreement for three years in the past, and seemingly has done a terrific job. UHI is surprised by the turn of events on the fresh tender, as their previous price agreement gave them an entitlement to a 15% price hike after three years. The new development of a fresh tender with a minor specification change put UHI’s plans in a quandary. The case depicts the tactics played by a large customer in pushing a vendor to align to new expectations despite a pre-agreed price hike.
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