
Winning
a good telecom contract is about content and process. This article
offers up 10 points to make the process better.
Often, we focus
on what content needs to be in a superior telecom contract. But
just because you want some language or pricing in a contract doesn't
mean you'll get it. Famed negotiator Chester Karras says, "You don't
get what you deserve, you get what you negotiate."
The strength
with which you go into a negotiation has a lot to do with the quality
of the deal when you come out. First and foremost, your ability
to negotiate successfully is tied to your ability to walk away from
the deal, which you can never do if your back is against the wall.

To maximize
your strength going into a negotiation, here are a few key early
stage tips:
Knowledge
Is Power: This combination of expertise and information about
your needs and the vendor's situation are the most critical elements
to tackle before you even get started with them. On your end, be
sure you know what services you will be purchasing and at what volumes
(both now and in the future), what the most favorable market rates
are, and whether you are actually in a position to switch vendors,
to name just a few key items.
Time and
Deadlines: Vendors like to start negotiations as close as possible
to when the contract term expires. Make sure that time is in your
favor, because time always works against the person who doesn't
have it. Start early and set a deadline that allows you to explore
other options if you can't reach an acceptable agreement with your
vendor (and let them know that is what you intend to do). For a
mid to large telecom agreement the starting point might be 6 to
8 months before expiration, with a deadline that leaves 4 to 6 months
to explore options. Remember, your true deadline and the negotiating
deadline are two different things.
Authority
Level: Negotiate at the proper authority level, with the person
that can say "yes." You don't want to have to negotiate it more
than once so refuse to negotiate with someone who doesn't have that
authority. Of course, you'll always want to have a higher authority
in the wings on your side.....
Create Risk:
Never let a vendor know that they have the inside track (even if
they have) until you have an acceptable contract. Tell the vendor
only that they have made it to the short list (they don't need to
know how short the list is). If the vendor thinks they are still
fighting for your business they will be more willing to accommodate
your highlights and redlines.

Analyze The
Offer: Everything is negotiable, but everything has a price.
Study the offer carefully and identify all changes that you would
like to see, then prioritize these changes so you can quickly identify
which ones are deal breakers. Also list the items that you are willing
to concede to as an act of "good faith negotiations." Try to identify
"hairy hand" items. These are items that are inserted to make the
deal look more challenging than it really is, and then get negotiated
out to win a concession (also known as decoys or red herrings).
Remember, quoted prices are invitations to buy, not statements of
value.
Trade-Offs:
Never give a concession without getting a concession. This is the
secret to keeping a negotiation balanced. It keeps the other side
from nibbling you to death. They know they'll have to give up something
for everything they get. This is like splitting the difference.
Always Ask:
If you want something, ask for it. Good negotiators do not put their
best terms on the table first, so you can be sure the vendors have
a little room to move. And it doesn't hurt to shoot really high
early on, that sets the tone that about your expectations for the
outcome.

Set-Asides:
When you're deadlocked on an issue, set it aside and come back to
it after you've reached agreement on the easier issues. Why leave
the toughest issues for last? Because by the end of negotiations,
the process has momentum and both sides will have the motivation
to be flexible.
Going Quiet:
If the negotiating table goes silent, people get nervous. Use this
to your advantage. Say nothing and wait for the gap to fill with
the comments of others. When you are down to the last few key points,
call a conference, leave the room, adjourn for a few days, whatever.
Just let the other side think. Don't be in a hurry to resume discussion.
Let them think you are losing interest. When you do come back, make
your points even stronger than before.
Blame The
Attorney: We're just kidding here (sort of). The truth is that
their skin is tough and you can hide behind their demands, especially
on language issues.
Ace In The
Hole: If you've properly run through the negotiation, you likely
have a little something in reserve to give away. You might have
a little extra volume towards a higher MARC, for example, that you
can trade off to get over the hump.
Walking Away:
This is not a strategy you should ever use as a bluff. When you
walk away from a deal, you have to be prepared to move on to your
next best option. But if the vendor feels you are in a position
where you can use this tactic, even the slightest hint could be
useful.

Negotiating
is a process, not an event. It takes a lot of practice, a lot of
preparation, and a willingness to see a positive outcome for all.
A well-done negotiation leaves everyone satisfied, it doesn't send
people home angry and frustrated.
Click Here for more information on Contract Negotiation services
from TelAssess.
To
ask one of our experts a question (no cost, no commitment), click
here.

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