There is no shortage of information on how to conduct effective contract negotiations and most enterprises would say “been there, done that.” 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 – ask for written responses.
- Request better pricing and terms based upon an “existing customer” relationship.
- Utilize Quid Pro Quo tactics – 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.