Offer Valid: 03/15/2022 - 12/31/2022

During contract negotiations, it may seem like the counterparty has your best interest at heart. However, it's wise to never take things at face value when figuring out a business agreement. While the other party may not want to do you harm, their primary goal is to protect their own bottom line. Likewise, your objective is to ensure your company gets a good deal.

Be Skeptical During Negotiations

Things aren't always what they appear to be when negotiating contracts. You should be skeptical of every offer or counteroffer presented to you, especially if it seems too good to be true. Ask yourself what the other party is trying to accomplish by offering you such a good deal. Will they use this compromise as a way to negotiate something else? Are you missing something and the deal isn't as good as it appears to be? Think about every offer or counteroffer carefully before making a decision.

Research Your Counterparty  

Research the other party extensively before entering contract negotiations. Figure out what they want or need and how you can best provide it. Ask for references from their other vendors, and see if you can get a feel for what those contracts look like. You can tell a lot about a company by analyzing their other business relationships.

You can take this research a step further by placing yourself in the counterparty's shoes. When developing your initial offer, ask yourself what you'd think if you were on the opposite end of the table. Would you find the contract acceptable as is or, at the very least, a promising start to the negotiations process? If the answer is no, identify the problem. For example, are your starting price points or minimum order values too high? If so, you can adjust your contract accordingly while still leaving haggle room above your minimums. 

Understand Your Competition  

You can learn more about the company you hope to do business with by understanding your competition. When you place yourself in the other party's shoes, you'll see your competition's alternatives. Investigate what other companies in your industry offer. What are their prices like? Can you offer something they can't? Whatever sets you apart from your competition should be used as a key selling point.

Create an Attractive Contract  

Neglecting your contract's presentation could set you up for failure. You want to create a contract that's detailed, organized, easy to follow, and visually appealing. A JPG to PDF converter can be helpful when creating a document that is secure and easy to share.

The way you handle the physical contract also matters. Use body language to appear confident yet open and friendly. You may find it helpful to learn more about body language by taking a class. Not only will this help your presentation, it can also enable you to better understand the counterparty.

Things Aren’t Always What They Seem During Contract Negotiations

Be skeptical during business contract negotiations, especially if something seems too good to be true. Carefully consider each offer or counteroffer before making a decision.

For more valuable business resources, consider joining  your local chamber of commerce. 

 

This Hot Deal is promoted by Portage Area Chamber of Commerce.