Stop Losing Money on Your Contract Negotiations

5 Strategies for Improving Contract Negotiations 

By S. R. Morris

It was the Rolling Stones who said “You can’t always get what you want, but if you try sometimes you just might find you get what you need.” That may be true when it comes to Rock ‘n Roll, but things are a little different when it comes to business contracts. It was Chester Karrass who said, “In business, you don’t get what you deserve; you get what you negotiate.”

So how can you stop losing money on your next contract negotiations and get what you want? These 5 strategies can be used to enhance the outcome of your negotiations with suppliers, internal departments, colleagues and other stakeholders.

1. Prepare for your next contract negotiations effectively

It was the billionaire financier Sir James Goldsmith who advised, “If you see a bandwagon, it’s too late.” Preparations for negotiations are essential if you want to succeed with your contract goals. Even if you weren’t a Boy Scout growing up, try to be prepared for everything that can arise in negotiating. If you ask yourself questions the other side may pose, you’ll be able to answer their queries with confidence.

2. Recognize and respect the needs and interests of all parties when negotiating

Asked about the rules for invention, Thomas Edison once said, “There are no rules here�"we’re trying to accomplish something,” In business contracts, however, a cardinal rule of negotiations is to understand the needs and consider the interests of other parties. You can save money and accomplish more if you take into account what the other side wants and attempt to find a win-win solution that will satisfy both parties.

3. Optimize your personal style in the negotiations

Try interjecting your own personal style into the negotiation process. Not only will you appear more approachable and human to the other party, it may result in a connection that will assist you in achieving your goal. It may not be fashionable, but it will make you feel more comfortable if you’re working in your own armor. French fashion designer Coco Chanel, listed by Time magazine as one of the 100 most influential people of the 20^th century, advised “Fashion fades, only style remains the same.”

4. Use your imagination to produce superior value to the contract

Walt Disney is universally recognized as one of the most imaginative minds of all time. One newspaper editor reportedly fired him because “he lacked imagination.” One day, working in a rodent-infected shed, he saw a small mouse and was inspired to draw a cartoon of it. The rest is history. Reread the contract. See if your imagination can result in adding something extra to the negotiations.

5. Review the key elements of contract negotiations and engage it with confidence

“Everything that can be counted does not necessarily count; everything that counts cannot necessarily be counted” (Albert Einstein). It is essential to re-examine the basics of any contract. Once you are satisfied it meets your goals, engage the negotiations with confidence, put the finishing touches on it, and end on a high note.

Successfully negotiating your next contract could save you money. Implementing these 5 strategies can improve the outcome of your negotiations in any business relationship you undertake. Author and innovator Michael J. Gelb summed it up when he said, “Champions know that success is inevitable; that there is no such thing as failure, only feedback.”

Copyright 2012 by S. R. Morris