How can you build your reputation when negotiating contracts?

1 Know your value proposition

Before you enter any negotiation, you need to have a clear and compelling value proposition that explains how your product or service can solve your customer's problem, meet their needs, and create value for them. Your value proposition should be based on solid research, data, and customer feedback, and it should differentiate you from your competitors. Having a strong value proposition will help you communicate your benefits, justify your price, and handle objections confidently.

2 Prepare and plan

Negotiation is not something you can wing on the spot. You need to prepare and plan ahead, by setting your goals, identifying your best alternative to a negotiated agreement (BATNA), and anticipating your customer's interests, concerns, and expectations. You also need to gather relevant information, such as market trends, industry standards, and legal terms, that can support your arguments and proposals. Moreover, you need to plan your strategy, tactics, and concessions, and decide how you will open, conduct, and close the negotiation.

3 Build rapport and trust

Negotiation is not only about numbers and facts, but also about emotions and relationships. You need to build rapport and trust with your customer, by showing genuine interest, listening actively, asking open-ended questions, and expressing empathy. You also need to demonstrate your credibility, by being honest, transparent, and consistent, and by delivering on your promises. Building rapport and trust will help you create a positive atmosphere, understand your customer's perspective, and find common ground.

4 Focus on value and interests

One of the most common mistakes in negotiation is to focus on positions and demands, rather than on value and interests. This can lead to a win-lose or lose-lose scenario, where both parties end up unhappy or dissatisfied. Instead, you should focus on creating value and satisfying interests, by exploring options, proposing solutions, and exchanging concessions. You should also emphasize the benefits of collaboration, rather than the costs of conflict, and show how your offer can create a win-win situation for both parties.

5 Handle objections and resistance

No matter how well you prepare and present your offer, you will likely face some objections and resistance from your customer. This is normal and expected, as it shows that your customer is engaged and interested in the negotiation. However, you need to handle objections and resistance effectively, by acknowledging them, clarifying them, addressing them, and overcoming them. You should not take objections personally, or react defensively or aggressively. Instead, you should use them as opportunities to provide more information, clarify misunderstandings, or offer alternatives.

6 Follow up and follow through

The negotiation does not end when you sign the contract. You need to follow up and follow through, by confirming the details, delivering the value, and maintaining the relationship. You should also seek feedback, evaluate your performance, and learn from your experience. Following up and following through will help you ensure customer satisfaction, loyalty, and retention, and also build your reputation as a reliable and professional partner.

7 Here’s what else to consider

This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?