Email: Tablet Contract Update

From: Seydou To: Peta Subject: Tablet Contract update

Hi Peta,

I’m working on finalizing the vendor contract with Terrific Tablets and I have a potentially big update for you. They just released a new pricing structure for their menu tablets and the software.

Previously, they would sell the tablets to the restaurants, and part of that cost would include the menu software—kind of like a one-time licensing fee. That’s what you and I have been counting on for the rollout. But they’re no longer offering that option. Terrific Tablets is now going forward as a subscription-based service, which includes hardware, software, support, customization, POS integration, and more as part of a monthly flat rate. I think it’s a much better service for us, but it does change the price point.

Now, instead of $200 per tablet for the 40 tablets we need, the subscription that matches our needs would be $300 a month and would cover all 40 tablets, the software, 24/7 support, customization—everything.

So instead of $8000 for using all the tablets in the first year, it will cost us only $3,600, including support. But, that $3,600 will need to be paid every year going forward.

Let me know what you think, and if you want to move ahead with the updated contract terms.

Seydou

Hi Seydou,

Wow, that is a big change! I guess we’ll need to revise that contract. Since this affects our project budget, and actually changes the tablets from a one-time expense to a recurring cost, let me run it by the team. I’ll follow up shortly.

Best, Peta

Sauce & Spoon: Company OKRs

  1. We make fresh food quickly for the working families of our community.
    1. Serve delicious meals and provide an enjoyable dining experience in under an hour
    2. Maintain an average rating of 4.5/5 stars on our review platform
  2. We prioritize our customer needs and wants
    1. Consistently innovate through annual projects (like menu tablets) to give customers a better dining experience
    2. Host quarterly employee ideas and feedback night
  3. We run an efficient, profitable business model so we can continue to grow in our community
    1. Keep our operating expenses below 65% and our profit margins above 8% in order to focus on providing high-quality food
    2. Ensure each investment over $100K undergoes analysis and results in a positive return