Featured Coaching Training: 17 Steps For Effective Contract Negotiations
Are you having trouble with contract negotiations? In this episode learn the 17 steps to effective contract negotiations taught my the Small Business Administration's "Entrepreneur of the Year" Clay Clark.
Featured Coaching Excerpt - Notes & Transcript, Part 1
Steps For Effective Contract Negotiations: : 4. Seek A Win-Win
Definition Magician: : Negotiation - “To discuss something formally in order to make an agreement” - Merriam-Webster Definition
Definition Magician: : Negotiation - “To get over, through, or around (something) successfully.” - Merriam-Webster Definition
Lesson Nugget: : When negotiating you must be committed to making a win-win deal happen and not beating up the other party.
Lesson Nugget:: If you win and the other party feel like they are taken advantage of, look for constant reminders of your deal on social media.
Lesson Nugget: : Your reputation will follow you around everywhere you go, be careful.
-Step number four, we're talking about contract negotiation. Seek a win-win. And you were kind of moving into that. So we're talking about negotiation.
We have the definition of negotiate. So I'm going to set this up for you. What does negotiate mean?
It means to discuss something formally in order to make in agreement. Also there's another definition to say, to get over through or around something successfully. Clay, what does it mean to seek a win-win?
-Well, let me get into this for you. A lot of people, when they negotiate, if this is where we're headed, as Webster talks about, the goal is we're trying to reach an agreement, or we're trying to get past-- let's pretend there's a tree in the way. We're trying to work our way around the optical. And if the tree in this case is the obstacle, we're just trying to work our way around that guy.
So we're trying to basically get around the obstacle. But we're trying to reach an agreement. That's what we're trying to do. And a lot of people, when they negotiate, I don't know what it is. I don't know if it's a deal where you feel like you've been taken advantage of in the past. I don't know.
But a lot of people, they want to do a deal where they're definition of negotiation is where you win and then they lose. And that's not a healthy way to go about it. That's not the mindset, because I'll tell you this. You have LinkedIn, you have Facebook, you have [WHISPERING] humans talk-- rumor has it humans talk to each other.
This just in, black helicopters everywhere. [HELICOPTER SOUND] But the point is, the human race is going to talk. And if you go in there, and you screw somebody over, they're going to talk about it. And if you take advantage of people, they're going to talk about it. Let me just give you an example.
I negotiated with a purchase of a Suburban from an anonymous automotive dealership that I will not mention their name. Albeit, they are very near [BLEEP], and I would never buy from these guys. But the point is, I go in, and the guy says, hey.
My wife's pregnant. We have five kids. And this is the last time she was pregnant. And basically, she looks like she's going to have a baby any moment.
We had twins. So it's almost an uncomfortable, where you look away, because you're like, you don't want to see her right before she goes into labor, because then you know you're going to have to drive this women you never met to the hospital, that kind of thing. You're right in that zone.
And the guy says, well, I'll tell you what. If you guys will do the deal today, I'll throw in a DVD player, I'll throw in the LCD screen, I'll throw in-- and since we have five kids, my wife's thinking, that's awesome, because we haven't had an adult conversation in a car for like-- I don't know-- a decade. It'd be great if there was a DVD player or something, so when we go on road trips, that the kids can entertain themselves.
So my wife says, well, that sounds good. And the guy goes, all right. So here's the deal. We're going to do for this amount of dollars. And then we're going to include the DVD player and the LCD screen for you guys.
Absolutely. We'll install. We'll make sure they install it tomorrow. Cool. Well as soon as we sign the deal, we get the little x on the line, we sign our name, what he does is he sends me a text, which by the way is the weakest form of communication in the whole world.
It's like, a text is like, send somebody a text, hey I'm running late. Hey, I want to screw you over. Hey, I want to not honor my commitment. Hey, I just want to be difficult, but I've become to weak to talk to you verbally.
Face-to-face, there's face-to-face, and there's on the phone, and then there's text. It's the weakest thing you could possibly do. So the guy says, I'm sorry, but I can't install it tomorrow.
So I said, OK. When can you? Well, I'd have to get back with you. Then I call him, call him. call him, call him.
Well, about the fourth time, homie says, I'm so sorry. We're backed up. And I guess when I said we would install it, I didn't know what that meant. We're still going to have to charge you an install fee.
And I'm like, what did you think it meant? And he's like, well, I didn't know there's extra costs and various things. And I said, home skillet, here's the deal. My wife's going to have a baby any minute. So you need to install this thing.
Long story short, they screwed me over. They never honored their commitment. And I've probably told-- I don't know-- 50 people about how much they're terrible, and how much I hoped that they fail, because they're a freakin' disaster. The guy's an idiot. He's the owner who did it.
So he made a win-lose, and I ultimately got a little litigation involved-- a little litigation. That's the one cool thing about having a little success, is you can just sue the crap out of the people who don't honor their commitments. But I went for it. And homeboy ended up installing our DVD player.
So the point is, he made a win-lose, and he hurt his reputation, he killed countless deals. Now, people that take care of me, I refer them. People who take care of you, you refer them too.
So you've got to seek a win-win. Do not seek a win-lose. Hopefully that makes sense. If that doesn't, it's because I'm not a gifted orator, in which case just send a complaint in there, and we'll deal with it.