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NEGOTIATION PLAYBOOKS
Price Escalation Clauses in Export Contracts
Commodity index linkage, inflation adjustment, review windows
Effective Date: 2026-04-16
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CONFIDENTIAL — FOR PRINCIPAL USE ONLY
Price Escalation Clauses in Export Contracts
Playbook Overview
Commodity index linkage, inflation adjustment, review windows
Context & Stakes
Who uses this playbook and when
Key decision points in this negotiation type
What is typically at stake (margin, relationship, timeline)
Preparation Checklist
Know your BATNA (Best Alternative to Negotiated Agreement)
Research the counterparty — size, buying history, alternatives
Set your anchor point, target, and walk-away
Prepare your supporting data — price benchmarks, logistics costs
Opening Scripts
[Opening line 1] "We are pleased to receive your inquiry. Our standard terms are..."
[Opening line 2] "Based on our current capacity and your volume, we can offer..."
Response Scripts for Common Counter-Positions
If buyer says "Too expensive" → "Our price includes [X, Y, Z]. Let us discuss volume-based pricing."
If buyer demands LC when you prefer TT → "For first order, we require 30% advance + LC at sight..."
If buyer insists on DDP → "We can offer DAP. For DDP we need 3% margin adjustment."
AJG Commission-Only Context
AJG facilitates this negotiation as commission-only broker. Both principals represented. AJG earns only on successful transaction close. This aligns all parties toward completion.
Document produced by All Frontier Global Nexus · Commission-Only · Unilateral · Bilateral · Trilateral · Multilateral
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