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    5 Replies Latest reply on Oct 20, 2007 10:05 PM by LUCKIEST

    Negotiating a contract

    alabed Newbie
      Any guide lines or recommendations on negotiating contracts ?
        • Re: Negotiating a contract
          teacup Wayfarer
          Always negotiate with more than one supplier - 3 or 4 if you can. This way, you can compare terms & pricing & leverage that information for negotiations. Also, this ensures that you get the best terms that protect your business & interests.
          1 of 1 people found this helpful
          • Re: Negotiating a contract
            Score133 Wayfarer
            The most important thing you have to do before you enter into any contract negotiation is to know exactly what you want the outcome to be and exactly where you will walk away. For example, if you want to sell a truckload of dirt for $100, but know that you will actually take $80, you have to be willing to walk away from an offer of $75. Think it through before you get into a contract negotiation situation. You have to be very familiar with every aspect (probably line by line) and know where the weaknesses are in the contracts and where the strengths are that will protect you. Remember, the negotiated money will wind up in someone's pocket...and it may as well be yours! So do your homework; research the other party and see what kind of financial shape they're in...how desperate are they to get cash? How desperate are you? Know what you want and be prepared to go and get it. Negotiating is not an easy task, but it is certainly not impossible if you are ready for it and are determined to get your fair share. And speaking of fair, only when both parties win is it a good contract. If you are uncomfortable with the entire negotiation process, hire a good lawyer with a good contract background.
            1 of 1 people found this helpful
            • Re: Negotiating a contract
              Lighthouse24 Ranger
              Prepare for the negotiation ahead of time:
              1. Decide on your bottom line (the absolute worst deal that you're willing to accept) and stick to it. Be prepared to walk away if you have to.
              2. Identify the areas in which you have power or leverage, and the areas in which the other party will have power or leverage during the negotiating process. Consider how and when to best use your power.
              3. Identify your negotiating "currencies" -- not just the money, but other things of value that come into play (there are always things that you give easily and that are important to them, and things that they can give easily that are important to you, so put them into play).
              4. Never give up anything without getting something in return.
              5. Make sure the other person can "save face" if you win. Everyone has someone else they have to answer to, and we are likely to encounter the same people over and over in our business dealings. Never turn someone else into a "loser" in the deal.
              6. Take a course, read a book, or listen to an audio program on negotiating ploys and tactics -- so you know what tough negotiators are using against you, and so you learn how to counter those tactics. (SCORE probably has a free course or something -- I'm sure they'll post it here if they do!)
              7. Start negotiating well before you need something, and try to keep time on your side. If you can afford to wait longer than the other person to get an agreement in place, you have an advantage.

              Good luck!
              • Re: Negotiating a contract
                Lighthouse24 Ranger

                Prepare for the negotiation ahead of time:
                1. Decide on your bottom line (the absolute worst deal that you're willing to accept) and stick to it. Be prepared to walk away if you have to.
                2. Identify the areas in which you have power or leverage, and the areas in which the other party will have power or leverage during the negotiating process. Consider how and when to best use your power.
                3. Identify your negotiating "currencies" -- not just the money, but other things of value that come into play (there are always things that you give easily and that are important to them, and things that they can give easily that are important to you, so put them into play).
                4. Never give up anything without getting something in return.
                5. Make sure the other person can "save face" if you win. Everyone has someone else they have to answer to, and we are likely to encounter the same people over and over in our business dealings. Never turn someone else into a "loser" in the deal.
                6. Take a course, read a book, or listen to an audio program on negotiating ploys and tactics -- so you'll recognize what tough negotiators are using against you, and so you'll learn how to counter those tactics. (SCORE probably has a free course or something -- I'm sure they'll post it here if they do!)
                7. Start negotiating well before you need something, and try to keep time on your side. If you can afford to wait longer than the other person to get an agreement in place, you have an advantage.

                Good luck!
                • Re: Negotiating a contract
                  LUCKIEST Guide
                  Lighthouse 24 has a great answer. Really answers the question well.
                  A great example is Joe Torres and the Yankees.
                  It does take skill to negotiate. Get professional help if you need it.
                  SCORE helps people in business and their services are FREE. You visit SCORE in person or on line.
                  Good luck, LUCKIEST