5 Tips For Negotiating A Better Contract
You've probably shed gallons of blood, sweat, and tears to ensure your company's success. And you know that getting a better contract can lead you one step closer to expanding your business. But how can you do that without coming across as demanding or greedy and potentially lose the deal?
Contract negotiations are just part of the game.
To climb the ladder of success, you need to advocate for your brand. Recognizing that your terms are reasonable doesn’t make you self-serving. It just means you genuinely believe in how much value you bring to the table.
If you're ready to take your business to a higher level, read on! In this blog, we'll give you some pointers on how to prepare for that conversation with your client. Here's some useful advice to help you negotiate a better contract.
1. Assess your business.
Before you begin any negotiation, it's important to have a clear assessment of your business's performance and development over the years. Ask yourself how your products or services have evolved over the years and how they’ve impacted your clients’ lives for the better, such that you can confidently say that they are worth more. Doing this assessment also helps you determine how much you should increase your prices.
And don’t forget to consider the goals of your business. Be sure that this move will benefit your company and facilitate its growth.
2. Do your homework.
You can't enter a battlefield empty-handed, and the same can be said for the business landscape. One of the most effective ways to prepare for a contract negotiation is to do thorough research on your clients. Arm yourself with the knowledge you need to identify their pain points and convince them that what you’re offering is worth their money and time.
Familiarizing yourself with the clients’ background will help you formulate counterarguments in case they question or protest some of the terms, and also show them your sincerity and your genuine desire to work with them.
3. Outline your accomplishments.
You can't advocate for your business if you are unable to demonstrate your value. How can you do that? The best way is to show rather than tell.
Give your clients an idea of what you can do for them by pointing to concrete examples that uplift your brand’s value. Show them your accomplishments, talk about your wins and the goals you've achieved. You can also mention past projects and collaborations you’ve had throughout the years. Just make sure you aren't breaching any confidentiality agreements, okay?
4. Don't rush.
When negotiating a better contract, your instinct may be to rip the bandaid off and start with the most difficult or demanding terms. But take a moment to think about this from your client’s perspective—if they hear something unfavorable right off the bat, they’ll get defensive.
Keep in mind that this is not an argument, but a way to reach an agreement both parties are happy with. Start with the more amenable terms first so you can warm up to each other before working your way up to the more challenging ones. This way, your clients will be more likely to consider your demands and be more willing to negotiate.
5. Exude confidence and excellence.
The last thing you want to do is appear unsure of yourself or your brand during negotiations. If your clients notice any hesitation on your part, they will begin to doubt whether your offer is worth it.
You need to look smart, act smart, and sound smart.
Don’t mistake this for bravado or arrogance. Remember, you’ve assessed your business and you know its capabilities by heart. Let your credentials speak for themselves.
Bonus Tip: Know when to say no.
When push comes to shove, don’t be afraid to walk away from a contract if you feel like the negotiated terms are too low. As we said earlier: you must advocate for your brand. Recognize the true value of your offer and stand by it.
And voila! Those are our best tips for negotiating a better contract with your clients. Don't forget to follow our blog for more useful advice and interesting content!