Negotiating a Contract

Often I wonder (or fear) before a meeting to discuss a contract if the other party would accept the changes proposed by my company. Often, these fears are unfounded and the meeting goes like a breeze. Here is what I have learnt about such meetings:


a) If you have critical disagreements in the contract, it is better to not send the redlined version before the meeting. It is better to bring these up orally, reach some sort of agreement before sending it out. This lightens the impact of these disagreements and gives you an opportunity to further refine your position before sending it out.


b) Everything is negotiable. Never hesitate to ask, except in the most absurd situations.


c) Find things to give, even if these are already given (if you get my drift).


d) Find other things to discuss before you get to the contract. Not the weather or the football game, but something else about the business or contract or whatever it is you are trying to do together. Don't jump straight into clause 11.7!


e) Never close the door on anything completely. Leave a little door open and say you cant agree but you are ready to go back to your company one more time.


f) MOST IMPORTANT: Get your own facts right. If you are a sales guy defending an estimate in a pricing negotiation, understand your estimates intimately before the meeting. Or else, you will be forced to concede room in the negotiation.


g) Dont panic or get desperate. With or without the deal, the world will surely go on. So, do your best but don't think the sky is going to fall if you dont succeed.