Key Points to Cover in a Contract Negotiation

Your negotiation metrics are outdated and costing you dearly. Forget spreadsheets; success goes beyond numbers. Here you’ll have seven powerful metrics, recommended by 𝗛𝗮𝗿𝘃𝗮𝗿𝗱’𝘀 𝗣𝗿𝗼𝗴𝗿𝗮𝗺 𝗼𝗻 𝗡𝗲𝗴𝗼𝘁𝗶𝗮𝘁𝗶𝗼𝗻 (𝗣𝗢𝗡), to redefine success in your negotiations. This will boost your profits, partnerships, and strategic impact. After advising executives from global companies like ABB and transforming negotiation strategies for over 30 years, I’ve seen how outdated metrics silently erode value. Most companies measure negotiation outcomes with overly simplistic financial indicators: • Higher rates • Bigger contracts • Short-term gains But here’s the costly truth:  ↳ This narrow focus risks long-term profitability, reputational damage, and missed strategic opportunities. Harvard’s Program on Negotiation (PON) recommends evaluating negotiations with these seven powerful metrics: 1️⃣ Relationship (separate people from the problem): ↳ Does your negotiation build relationships by clearly separating interpersonal issues from substantive problems? 2️⃣ Communication (Listen actively and empathize): ↳ Are discussions focused on understanding the other side’s perspective, actively listening, and demonstrating empathy to solve issues constructively? 3️⃣ Interests (Identify shared and divergent interests): ↳ Does the negotiated outcome effectively address your core interests, your counterpart’s key interests, and relevant stakeholders’ interests? 4️⃣ Options (Create value through joint gains): ↳ Have you jointly brainstormed multiple creative solutions aimed at maximizing mutual gains and expanding the negotiation pie? 5️⃣ Legitimacy (Use objective criteria): ↳ Is the agreed solution backed by objective criteria, standards, or precedents, ensuring fairness and acceptability for all parties involved? 6️⃣ BATNA (Best Alternative to Negotiated Agreement): ↳ Is your negotiated agreement demonstrably superior to your best alternative if the negotiation fails? 7️⃣ Commitment (Clear and realistic implementation): ↳ Are the negotiated commitments detailed, clear, realistic, and actionable, ensuring both parties understand their roles and responsibilities? Companies embracing these comprehensive metrics don’t just close deals; they build enduring competitive advantages. Redefine your negotiation success metrics now. Use these seven dimensions to evaluate your next negotiation. Your future bottom line will thank you. What’s your favorite metric for measuring negotiation success? Share in the comments. ♻️ Found value here? Please repost. Let’s raise negotiation standards together. 

A champion leaves. A competitor undercuts your price. Legal delays the contract. Most reps treat these as surprises. But the gangster reps already saw them coming. If you don't do this already, you should consider running "what-if" scenarios like you're a chess master. Here's how to approach it: 1. What if your champion leaves? Before it happens: - Map the full buying committee and build relationships across functions. - Ask your champion: "If you weren't here tomorrow, who would drive this decision forward?" - Document their specific language and priorities so you can replicate their influence. When it does happen: - Leverage the departed champion's credibility: "Sarah specifically mentioned this would solve your Q4 capacity issues." - Pivot to the technical buyer: "Sarah felt strongly that your engineering team needed to own the integration timeline." - Use internal references: "Sarah connected me with your VP of Operations because she knew he'd appreciate the automation benefits." 2. What if a competitor slashes pricing? Never compete on cost alone: - Pre-build ROI models showing 18-month payback vs. competitors' 36-month timeline. - Emphasize switching costs: "Moving from your current system will require 6 weeks of developer time. Our API integration takes 3 days." - Document proof points competitors can't match: "We're the only solution that integrates natively with Salesforce AND HubSpot." Build your "Why We Win" document with: - Specific customer success stories in their vertical. - Technical capabilities that require no workarounds. - Implementation timelines that beat industry standards. - Support SLAs that competitors don't offer. 3. What if a deal stalls in legal? Get ahead of contract negotiations: - Ask upfront: "What contract terms typically slow down your legal reviews?" - Bring your own legal counsel to prospect meetings: "Our legal team can address any redlines in real-time." - Provide template MSAs: "Here's our standard agreement. Your legal team can review this while we finalize technical requirements." Anticipate common sticking points: - Data processing agreements for compliance-sensitive industries. - Liability caps that match the customer's risk tolerance. - Termination clauses that protect both parties. - Service level guarantees that legal teams actually approve. 4. What if the budget gets cut? Build multiple buying scenarios: - Phase 1 implementation that shows immediate ROI. - Pilot programs that prove value before full rollout. - Consumption-based pricing that scales with usage. - Multi-year agreements with lower annual commitments. Prepare budget defense talking points: - "This pays for itself in 8 months through automation savings." - "Delaying costs you $50K per month in manual processes." - "The pilot requires zero upfront investment." Don't just forecast what will close. Forecast what could go wrong - and how to fix it before it breaks.

"We have budget for $199,000," the procurement manager spat at me. I had a $325,000 deal forecasted, and we had 7 days left to close it. That was June, 2020. End of quarter. Egg about to be smeared all over my face. I paced around my house while my family swam at the pool. Cursing under my breath. Back then, I knew every negotiation tactic in the book. But that was the problem: My negotiation "strategy" was actually what I now call "random acts of tactics." A question here. A label there. Throw in a 'give to get.' There was no system. No process. Just grasping. Since then, I now follow a step by step process for every negotiation. Here's the first 4: 1. Summarize and Pass the Torch. Key negotiation mistake. Letting your buyer negotiate with nothing but price on their mind. Instead: Start the negotiation with this: “As we get started, I thought I’d spend the first few minutes summarizing the key elements of our partnership so we’re all on the same page. Fair?” Then spend the next 3-4 min summarizing: - the customer's problem - your (unique) solution - the proposal That cements the business value. Reminds your counterpart what's at stake. They might not admit it: But it's now twice as hard for them to be price sensitive. After summarizing, pass the torch: "How do you think we land this plane from here?" Asking questions puts you in control. Now the onus is on them. But you know what they're going to say next. 2. Get ALL Their Asks On the Table Do this before RESPONDING to any "ask" individually. When you 'summarize and pass the torch,' usually they're going to make an ask. "Discount 20% more and we land this plane!" Some asks, you might want to agree to immediately. Don't. Get EVERY one of their asks on the table: You need to see the forest for the trees. “Let’s say we [found a way to resolve that]. In addition to that, what else is still standing in our way of moving forward?” Repeat until their answer is: "Nothing. We'd sign." Then confirm: “So if we found a way to [agree on X, Y, Z], there is nothing else stopping us from moving forward together?" 3. Stack Rank They probably just threw 3-4 asks at you. Now say: "How would you stack rank these from most important to least important?” Force them to prioritize. Now for the killer: 4. Uncover the Underlying Need(s) Ignore what they're asking for. Uncover WHY they're asking for it. If you don't, you can't NEGOTIATE. You can only BARTER. You might be able to address the UNDERLYING need in a different, better way than what they're asking for. After summarizing all of their 'requests,' say this: “What’s going on in your world that’s driving you to need that?” Do that for each one. Problem-solve from there. P.S. These 7 sales skills will help you add an extra $53K to your income in the next 6 months (or less) without working more hours, more stress, or outdated “high-pressure” tactics. Go here: https://lnkd.in/ggYuTdtf

𝗩𝗲𝗻𝗱𝗼𝗿 𝗖𝗼𝘀𝘁, 𝗤𝘂𝗮𝗹𝗶𝘁𝘆, 𝗮𝗻𝗱 𝗧𝗶𝗺𝗲... 𝗖𝗮𝗻 𝘄𝗲 𝗵𝗮𝘃𝗲 𝗶𝘁 𝗮𝗹𝗹??? Ever heard of the Iron Triangle? (I'll give you a hint, it's not Bermuda's neighbor in the Atlantic Ocean!) Project Managment folks may be familiar with the Iron Triangle concept. Procurement peeps, we can also apply this to vendor contract negotiations. Envision a triangle with each corner representing cost, quality, and time. Changes to one corner usually impacts the others. Having flexibility in one corner, though, can strengthen the others. Use historical data for negotiation planning, making informed choices that balance the triangle based on your business needs. 𝗖𝗼𝗺𝗺𝗼𝗻 𝗻𝗲𝗴𝗼𝘁𝗶𝗮𝘁𝗶𝗼𝗻 𝗹𝗲𝘃𝗲𝗿𝘀 𝗳𝗼𝗿 𝗜𝗿𝗼𝗻 𝗧𝗿𝗶𝗮𝗻𝗴𝗹𝗲 𝗼𝗽𝘁𝗶𝗺𝗶𝘇𝗮𝘁𝗶𝗼𝗻: ➜ Tiered pricing models for greater flexibility. ➜ SLAs with penalties/ incentives to encourage vendors to exceed performance targets, minimal cost, maximum impact. ➜ Paying early to secure discounts. ➜ Efficiency gain clauses, typically requiring YOY gains for the duration of the contract. ➜ Right to audit clause to ensure compliance w/ minimal cost (if any). ➜ Flexible termination language & transition support. Ensures your pocketbook and operations don't suffer if things go south. 𝗔𝗻𝗱 𝘁𝘄𝗼 𝗯𝗼𝗻𝘂𝘀 𝘁𝗶𝗽𝘀: 1. If you're constantly spinning your wheels with subpar vendor quality, rework costs are likely eating into your expected ROI. Keep a close eye on total cost of ownership, the vendor may be costing you more headache than it's worth. 2. Investing in vendor relationships is key. Strong partnerships foster flexibility and innovation, translating to better quality at reduced costs. Win\ win all around! --------------------- What other strategies do you use to balance cost vs quality? Let me know in the comments! 👇

In business and life, the best outcomes go to the best negotiators. Most people think negotiation is about winning. It's actually about understanding. What separates good deals from great ones? It's not aggression. It's not manipulation. It's not who talks loudest. It comes down to mastering the human side of the exchange. Here's the path that works: 1. Prepare Like You Mean It Research goes beyond Google. Understand their pressures, their goals, their challenges. Knowledge becomes helpful when used with care. 2. Open With Real Connection Forget the power plays. Start with curiosity and respect. The tone you set in the first 5 minutes shapes everything that follows. 3. Explore What's Underneath People fight for positions. But they negotiate for reasons. "I need a better price" might really mean "My boss needs to see I'm adding value." Find the why behind the what. 4. Trade Value, Create Value The best deals aren't zero-sum. Look for ways both sides can win. Sometimes what costs you little means everything to them. 5. Close With Total Clarity Handshakes aren't contracts. Document what you agreed to. Confirm next steps before you leave. Ambiguity kills more deals than disagreement. The biggest mistake I see leaders make? They negotiate like it's combat. But the best outcomes come from collaboration. When you're across the table, remember: 👂 Listen more than you speak ❓ Ask "Help me understand..." when stuck ⏸️ Take breaks when emotions rise 👟 Know your walk-away point before you sit down Your style matters too. Sometimes you need to compete. Sometimes you need to accommodate. The magic is knowing when to shift. Success isn’t given. It’s negotiated. But how you negotiate determines whether you build bridges or burn them. Choose wisely. 📌 Save this for your next negotiation. ♻️ Repost if this helps you (or someone on your team) negotiate. 👉 Follow Desiree Gruber for more tools on storytelling, leadership, and brand building.

I sold three companies before I turned 36, and they were all VERY intense negotiations. These are the 6 rules of negotiation that I wish I had known from day 1: 1/ Establish a Mission & Purpose This is your guiding light throughout the entire negotiation process. Do this by establishing a mutual goal with the other party that you can both return to again and again. Remind each other why you’re pursuing the negotiation in THEIR world. This is key because it helps the other party understand that everything you negotiate after that helps them achieve *their* goal. 2/ Understand Motivations Before you even begin an engagement, you need to understand the other party’s motivations. This is NOT the time to make assumptions because that will fast-track you to a loss. Listen intently as you get to know them, and really seek an understanding of their motivations. 3/ Drive to a Decision My negotiation motto is that every engagement should drive to a decision. Don’t bother with needless check-ins and updates. Instead... Stay focused on one decision at a time. That single clear objective cuts through the noise and narrows your attention. When your eyes are on the prize, nothing can distract you. 4/ Be Prepared Come to the table as prepared as you can with scripts, key points, and stakeholder motivations to guide you. Yes, scripts are actually amazingly helpful. Being prepared gives you direction, confidence, and the ability to anticipate and adjust.. fast. 5/ Don’t Bluff. It’s tempting! I get it. Especially when the other party is dragging their feet. But the moment you give a false deadline or ultimatum, and the other party calls your bluff… you’ve lost all credibility. There are ways to push action with bluffing: “It’s important you know if we don’t do ___ by ___ date, our mutual goal will be put at risk." This doesn’t have any hard bluff, but does give directional accuracy. 6/ No Isn’t the End I love hearing ‘no’ during a negotiation because I know that the negotiation isn’t over yet. Far from it: It means there’s an opportunity for further understanding. If you hear “no,” ask this: “What led you to come to this answer? What parts made sense and what didn’t?" Same goes for you - if you say “no” it doesn’t mean the negotiation is over. Say no, keep standing at the table, and ask “How would you like to proceed?” These rules aren’t just relevant to M&A negotiations, but they’re also effective tactics for most negotiation scenarios and even B2B sales. ––– I've shared my best negotiation tactics; now it's your turn – what are some tactics you use?

When negotiating commercial contracts, we in-house counsel focus a lot on indemnities and limitations of liability. These provisions are important. But in my experience, they become an issue maybe 1% of the time during the life of the contract. So what clauses do become issues a majority of the time? Price and price escalations, delivery schedules, payment terms, SLAs, insurance, contract periods, renewals, and terminations. While these are generally business decisions, it’s important that in-house counsel review these clauses to make sure that they are drafted properly and that they align with what the company wants and needs. Don’t miss the forest for the trees. #lawyer #community #howtocontract

The G.A.I.N.S. Comp Negotiation Playbook by Jacob Warwick Every successful negotiation starts with leverage. While most people ask, “What can you offer me?,” the people who secure the highest comp say, “Here’s how I’ll solve your most pressing challenges and create new possibilities for your business.” This shift isn’t semantic—it fundamentally transforms how decision-makers perceive your value. When you make them feel confident, inspired, and excited about the future you’ll build together, compensation becomes a natural reflection of that value, not a negotiation point. Whether you’re planning six months ahead or sitting in discussions right now, here’s the process Jacob Warwick developed through trial and error with hundreds of clients over 15 years. Here's the playbook: G: Gather intelligence. Go beyond the obvious. Dig into the company’s real challenges, understand who truly makes decisions (hint: it’s not always on the org chart), and know their market better than they do. A: Align with their needs. Stop selling your resume. Start demonstrating how you’ll solve their specific problems for the company/team. When you position yourself as the solution to their challenges—not just another candidate—the power dynamic shifts immediately. I: Influence key stakeholders. Create champions throughout the organization, not just with the hiring manager. Show each stakeholder how you’ll make their world better, and they’ll fight for your compensation later. N: Navigate complexity. Master the delicate dance of pushing for what you’re worth without creating tension. Know exactly when to advance discussions and when to build relationships. Timing is everything. S: Secure your value. Get agreements right, start delivering value before day one, and build the foundation for your long-term success. Here's more on part 1: G: Gather intelligence that others miss The most valuable information won’t show up in press releases or job descriptions. To build real leverage, spend time on three key intelligence domains: 1. Organization dynamics Forget the org chart—real power flows through history, unspoken alliances, and relationships. Approach: - Identify who gets consulted before decisions are made (often not who you’d expect) - Learn which past failures still haunt leadership thinking - Discover which rising stars have the CEO’s ear - Uncover the true drivers that aren’t discussed openly How to execute this: Before any interview, ask your network, “Who really influences decisions at this company?” and “Whose opinion does the leadership team value most?” The answers might surprise you. During the interview, ask questions such as: - How are decisions typically made in this organization? - Who are the key people I will collaborate with? - What’s the history behind this position? Is it new or am I replacing someone? - How can I best show up for you? And how can I best show up for [name other team member(s)]? Keep reading: http://bit.ly/3S1qiT2

Q. How do I negotiate an individual employment contract? Is it like negotiating a job offer? A. Your employment contract is an element of the offer, like vacation time or salary or any other negotiation point. As in any offer negotiation, you have more leverage if your skills are hard to find and in order to negotiate, you need to be able and willing to walk away if they do not meet your terms. When they extend the offer, they will say the salary is X and the bonus is Y, etc. You’ll talk about those elements and then you’ll say, I will need an employment contract for this role, and [for example] six months of severance if I should be released without cause. The most important provisions of your employment contract are 1) if you are dismissed without cause you will receive a negotiated amount of severance, and 2) they cannot change your pay, job title or major responsibilities without your approval. These are benefits most working people in the US do not receive. In the US virtually every executive gets an employment contract so if you are already working at a Director level or above and do not have one, you should negotiate one either at your next performance review or when you change jobs the next time around. I often hear from HR directors and VPs who were unaware that all of their peers have employment contracts because when they were hired, they were not offered one. In that case, the thing to do is contact to your firm’s outside counsel or check with your in-house counsel to get copies of those employment contracts. It is startling (and galling) for HR leaders to realize that although they are in charge of hiring, they were not offered the same contract their peers were but at least that is easy to correct. Of course, if you are hesitant to ask for an employment contract when your peers already have them or if you try to get one and are refused, it’s time to change jobs. If you are recruited by an employer or their agency recruiter, you have more leverage. An employment contract is an obvious and logical thing to ask for because without it, you have no assurance that your job will persist even for a week, and if you are already happily employed why would you change jobs under those circumstances?

3-step negotiating framework to finish Q4 strong and give away less of your commissions 👇 ✅ 1/ Anchor Anchor the entire negotiation around why they want to buy and what happens if they don’t. → Why do they want to buy? Confirm the business impact the buyer is expecting to make with your solution. Talk about what happens if they do nothing. The buyer needs to understand that they’d be crazy not to do this. → Are we the vendor of choice? DO NOT negotiate unless you are the vendor of choice. This avoids situations where buyers use you to get the vendor they really want to lower their price. If yes: “Can you tell me why?” If anything but a yes: “Sounds like we aren’t your top choice. Before we go any further, can we make sure we’re aligned on what you’re trying to accomplish?” → What’s the risk in using a solution besides ours? This includes attempting to do this on their own or sticking to their current solution. ✅ 2/ Align Now it’s time to get on the same page as the buyer. → What’s the ideal “up and running” date? This one’s simple. Confirm the date they need your solution live and why that’s important. → What is their internal purchasing process? Identify potential snags: 1) Has the budget been approved for this project? 2) What could be perceived as more urgent than this? 3) Are there any upcoming organizational efforts that could affect this? Confirm signing process: 4) Who needs to approve prior to signature? 5) Will my team send for e-signature or will yours? Launch: 6) When can we schedule an implementation call? ✅ 3/ Negotiate The buyer’s chompin’ at the bit to talk pricing now. → Find out what the buyer wants & understand why. Always get the buyer to open up first. Bite your tongue. Get them talking. “Can you help me understand where we’re at an impasse?” “Can you share what’s driving the need for a lower contract price?” 💰 Budgeted Amounts: Is there a legitimate budget constraint? ⛔️ Procurement Policies: Is there a purchasing threshold? 🤼♀️ Sport: Are they just asking because that’s what they’re supposed to do? → Counter Share what you’re able to do. Talk about what’s important, where you have flexibility, and ask for something in return. “Here’s what’s important to us…” “Here’s where I’m flexible…” “Here’s what we’d love to get in return…” → Secure next steps Hopefully, you’ve made progress at this point! ⛔️ If they need to go back to their team: Set another meeting to review ✅ If they agree to the terms: Get the timeline for their next steps ================ Want more? I’m running a webinar this Wednesday with 4x President’s Club achiever at Gong, Brian LaManna. He’s sharing a negotiation framework to finish Q4 strong and give away less of your commissions. Register here to join us: https://hubs.ly/Q028M3CV0 #Sales #Prospecting #Outbound