Contract Negotiation

Overview

Master contract negotiation by preparing thoroughly, understanding your leverage, and negotiating smart trades. Effective negotiation balances aggressive pursuit of favorable terms with relationship-building for long-term partnerships.

Pre-Negotiation Preparation

1. BATNA Development (Best Alternative to Negotiated Agreement)

Your BATNA is your walkaway position; without it, you're negotiating blind.

Example BATNA for Vendor Negotiation:

BATNA Elements:
1. Vendor B is willing to do $95K/year (proven alternative)
2. Build in-house is feasible for core functionality ($250K project)
3. Alternative vendor C can go live in 16 weeks if needed