From: Peta

To: Deanna
Subject: Regarding Tablet Contract Update

Hi Deanna,

I hope you are fine. Now that we have received information that the tablet pricing system has
changed, I would like to talk about future project plans.

Terrific Tablets has launched a new pricing structure for menu-based tablets and software,
which is transitioning to a subscription service model. With our layout, an initial one-time cost
of $8,000 is now a recurring cost of $3,600 per year. In fact, we will pay more for the lifetime
of the plant. We originally assumed that the $8,000 investment would last up to five years until
it was deprecated, so we need to take a closer look at subscription services to determine the
break-even point.

The initial cost is reduced by about 50%, but the risk of a sharp increase in monthly
subscription fees must be taken into account, which can negatively impact the OKR "Keep
operating costs low and budget accurate...". Finding new vendors may not be an option if you
have time and budget constraints, especially if you have a fixed release date.

I will send you a meeting invitation and we should discuss alternatives. Here are a few that I
prepared in advance, feel free to add them:
➔ Regular scheduled launch, increase budget and spend for model
➔ Delay launch, stick to current budget model and spend
➔ Reduce the number of tablets, features, add-ons, to ensure that the budget is
respected from a time point of view until the break-even point.

Looking forward to our conversation

Best Regards,
Peta