Great article -- both in terms of the general message and the specific story about the bully.
One thing that helps a lot in a situation like that is having advisors (or board members) you can trust to talk with in situations like this. If they all also say "you don't know the Way It Works", then it's worth listening. More likely, though, they'll say something more along the lines of "Wow, that guy's an asshole. Look, you're confident about your business model, and here are some other examples of companies who don't offer bulk discounts. He's just being a roadblock. Here are some sales techniques that might help in a situation like this."
At my startup back in the 1990s, we had gotten to verbal agreement on a $200K deal. The paperwork hit a snag and our CEO headed off on vacation to a place with no FAXes or FedEx, but no problem: I was a naiveish techie, but I wa also founder/CTO and had signing authority. So we agreed that I'd fly to their location onsite, sign the contract, and get going. Once I got there, surprise: a couple of new terms! And no, we couldn't get started without a contract.
I said, y'know, I'm not comfortable with this. They said "but that means you'll just have to turn around and fly home." The deal was pretty key to our success and I didn't want to let it go but you have to draw lines. So I called up one of my board members, who agreed. They said "stick around for lunch, let's talk this through." After lunch they decided that the new terms didn't have to be there after all. Funny how that worked.
One thing that helps a lot in a situation like that is having advisors (or board members) you can trust to talk with in situations like this. If they all also say "you don't know the Way It Works", then it's worth listening. More likely, though, they'll say something more along the lines of "Wow, that guy's an asshole. Look, you're confident about your business model, and here are some other examples of companies who don't offer bulk discounts. He's just being a roadblock. Here are some sales techniques that might help in a situation like this."
At my startup back in the 1990s, we had gotten to verbal agreement on a $200K deal. The paperwork hit a snag and our CEO headed off on vacation to a place with no FAXes or FedEx, but no problem: I was a naiveish techie, but I wa also founder/CTO and had signing authority. So we agreed that I'd fly to their location onsite, sign the contract, and get going. Once I got there, surprise: a couple of new terms! And no, we couldn't get started without a contract.
I said, y'know, I'm not comfortable with this. They said "but that means you'll just have to turn around and fly home." The deal was pretty key to our success and I didn't want to let it go but you have to draw lines. So I called up one of my board members, who agreed. They said "stick around for lunch, let's talk this through." After lunch they decided that the new terms didn't have to be there after all. Funny how that worked.