There is no shortage of information on how to conduct effective contract negotiations and most enterprises would say 鈥渂een there, done that.鈥� Nonetheless, critical planning and timing aspects are frequently overlooked. Bargaining power is stronger and stress levels are lower when negotiations begin roughly 90 days prior to contract expiration.
Info-Tech recommends enterprises complete the following tasks:
- Verify what happens if the existing contract expires.
- Prepare a list of contract change requests 鈥� ask for written responses.
- Request better pricing and terms based upon an 鈥渆xisting customer鈥� relationship.
- Utilize Quid Pro Quo tactics 鈥� ask for more than you expect to receive.
This research note addresses the timing facet of several important activities that should be included in contract renewal plans.
