Sticky contract negotiations
Sticky contract negotiations
Establishing your contract and terms can be the most important aspect of your business. Business clients might have contractual questions and request minor revisions to the final contract. Be flexible with terms to accommodate clients that might have special requirements for their business.
Setting up a general service contract with selectable terms is the best way to create a contract. Giving clients options in the contract term and services section will allow better customer service and happier clients.
Here are ideas on contract terms:
- Term of service -This is a great way to offer certain contract terms in month, years or maybe longer years with price incentives.
- Responsibilities of the client – List communication expected during the contract term. This might include changes in sales reps, payment or notice of termination of contract.
- Responsibilities of the provider – Describe details of the services included in the selected contract. This might include monthly expectations or result based expectations.
- Payment selection – Offer alternative methods of payment. This might be a monthly contract, yearly fee or discount for an upfront payment. List ways of payment such as credit card, check, cash or ACH. Mention late payment information in the section as well.
- Warranty – Provide warranty information in this section. If you offer a satisfaction guarantee of all services rendered, provide the warranty statement here.
- Legal – Mention the legal repercussions for binding contracts.
- Timeline – Provide exact timeline for services. If there is a desired date of completion for a specified project, add this information to the contract.
Some parts of a business contract do not need to be negotiable and sticking to your terms from the beginning of communication with a new customer is key to a long term business relationship.
All businesses like to know the terms of an agreement before signing on the dotted line. Check with an attorney on legal ramifications in your area for a binding contract.
The key to a great, long term business relationship is to listen to
your prospect and allow room for flexibility with the contract negotiations in order to acquire new business. You can strive for the best and provide the best without losing your clients due to contractual requests.
