A Checklist for Making the Best Deals

The deals you make define your reputation. Your ability to identify and close deals is an integral part of your success, and making good deals provides you with more opportunities. It's critical to understand what you can and can't negotiate to win in these discussions.

Are You Ready for the Bargaining Table?

Don't walk into negotiations without all the details and a plan. Anticipate what to do if the first offer isn't close to your goals. If you can't or don't want to accept the offer, let the other party know that you aren't rejecting it. You're merely reserving your response until you get more information.

Why Is This Deal Important?

Before you put time and energy into a new deal, make sure it's worth your while.

• Does it further your long-term goals?

• Is this offer the best you can do right now?

• What are the consequences and benefits of turning down or accepting the deal?

The answers to these questions help you form a strategy.

When you have a plan, know the offers on the table to start, and have a solid understanding of why you need to be successful, you're ready to list your negotiables.

What Are Your Negotiables?

To realize a profit, you must know your full array of negotiables to prepare for negotiations, including your bottom line. Here are some common items that you may consider negotiables:

• Price. Know the minimum and maximum cost per unit or service level you're willing to accept. Negotiate the price between these variables.

• Terms. Consider different contract lengths. Are you willing to start with a short one or two-year agreement and work from there?

• Delivery date. An early delivery date can come with a higher purchase price or bonus incentive, while a later date may come at a lower cost.

• Service levels. Different service levels give the other party the flexibility to choose the most cost-effective option.

• Quantity or volume. More items or higher volume can equate to a lower cost per item. This negotiable can help you secure the contract by offering supplier discounts, but you may want to require a longer-term contract to lock in the price.

Reach Beyond the Parameters to Secure a Deal

As you discuss a potential contract, bring your negotiables and nonnegotiables to the table. But if a deal is possible, don't let an opportunity slip from your reach if the negotiations are within your range. Expect your talks to involve a series of moves and countermoves.

Be patient. You may need to expand and move outside of the original agreement to find a solution that meets everyone's goals. However, it's okay to walk away if you can't get what you want or need.

Pay Extra Attention to Contract Presentation

Along with the specifics of the contract, consider its presentation. The appearance can make a big difference in its appeal to other parties. Also, use an easy PDF compressor to ensure the document displays correctly when viewed on various devices.

Enjoy Success in All Negotiations

Parties that enter contract discussions prepared with a complete understanding of what they want and need from an agreement have a better chance of making a great deal.

Gain more insight into business negotiations by joining your local chamber of commerce.