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You’re a consultant who needs to negotiate contracts. How do you make sure you get the best deal?

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As a consultant, you know that negotiating contracts is a crucial skill to succeed in your business. You want to secure fair and profitable terms, avoid disputes and misunderstandings, and build trust and rapport with your clients. But how do you make sure you get the best deal without compromising your reputation or relationship? Here are some tips to help you master the art of contract negotiation.

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Philip Harriman, ChFC

Guiding Family Businesses to the alignment of their heads, hearts and stomachs with their money and their legacy for…

1 Know your value

Before you enter any negotiation, you need to know your value as a consultant. What are the benefits and outcomes you can deliver to your client? How do you differentiate yourself from your competitors? What are your unique selling points and expertise? Knowing your value will help you set realistic and confident rates, justify your fees, and communicate your value proposition.

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Md Anwar Hossen

Barrister-at-Law, the Honourable Society of Lincoln's Inn. Associate- Law Valley, a top-tier law firm in Bangladesh
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The things I have found crucial for effective negotiation by way of avoiding dispute, securing fairness but keeping with the profitable terms are; 1. Never go beyond the limit; and 2. Work toward a win-win resolution from the beginning of negotiations; and 3. Know the common interest, conflicting interests, way of compromising and criteria; and 4. Avoidance of conflict at all costs; and 5. Effective communication strategies; and 6. Never sell and know when to walk away Being a part of negotiations, should devote significant time to brainstorming a wide range of possible options before choosing the best one; Lastly, I want to emphasise that the negotiator should be direct and respectful to address the issues however they are small.

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2 Do your research

Another key step is to do your research on your client, their industry, their needs, and their expectations. What are their goals, challenges, and pain points? What are their budget and timeline constraints? What are their preferences and communication styles? What are the market rates and standards for similar projects? Doing your research will help you tailor your proposal, anticipate their objections, and find common ground.

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Philip Harriman, ChFC

Guiding Family Businesses to the alignment of their heads, hearts and stomachs with their money and their legacy for decades.
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Present a path of success for the client which they feel heard, understood and give them insight into your unique abilities. When these are combined with a vision of the outcome you can guide them to, upon reflection of your presentation they will be happy to pay a premium to have your experience and wisdom working for and with them.

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3 Prepare your BATNA

BATNA stands for best alternative to a negotiated agreement. It is the option you have if the negotiation fails or the deal is not acceptable. For example, your BATNA could be working with another client, pursuing a different project, or walking away from the deal. Preparing your BATNA will help you determine your minimum acceptable terms, avoid settling for less, and strengthen your bargaining position.

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4 Be flexible and creative

Negotiation is not a zero-sum game where one party wins and the other loses. It is a collaborative process where both parties can achieve mutual benefits and satisfaction. To do that, you need to be flexible and creative in finding solutions that meet both your and your client's interests. For example, you could offer discounts for longer-term contracts, add value-added services, or adjust the scope or timeline of the project.

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Michael Riela

Business and Legal Counselor / Senior Investments Attorney at Genworth Financial
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Are you negotiating contracts on your own behalf, or on behalf of paying clients? If you’re doing the latter and don’t have a law license, check your mail for a cease and desist letter from your state bar.

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5 Listen and ask questions

One of the most important skills in negotiation is listening. Listening will help you understand your client's perspective, needs, and concerns, as well as build rapport and trust. It will also help you identify opportunities, gaps, and areas of agreement or disagreement. To listen effectively, you need to ask open-ended questions, paraphrase and summarize what you hear, and avoid interrupting or arguing.

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6 Review and confirm

The last step is to review and confirm the details of the contract before signing it. You want to make sure that everything is clear, accurate, and complete, and that there are no hidden clauses, fees, or risks. You also want to confirm that both you and your client are happy and satisfied with the deal, and that there are no unresolved issues or doubts. Reviewing and confirming the contract will help you avoid future conflicts, disputes, or misunderstandings.

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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?

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You’re a consultant who needs to negotiate contracts. How do you make sure you get the best deal?

1

2

3

4

5

6

7

1 Know your value

2 Do your research

3 Prepare your BATNA

4 Be flexible and creative

5 Listen and ask questions

6 Review and confirm

7 Here’s what else to consider

Small Business

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You’re a consultant who needs to negotiate contracts. How do you make sure you get the best deal?

1

2

3

4

5

6

7

1 Know your value

2 Do your research

3 Prepare your BATNA

4 Be flexible and creative

5 Listen and ask questions

6 Review and confirm

7 Here’s what else to consider

Small Business

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