How the payment is negotiated could be cash only, cashier’s check, business check, credit card, installment plan, etc. If payment is about delivery of goods, the payment could be on delivery or within 10 or 30 days. If the project is going to take place over a period of a couple months, then they may need progress payments, monthly or semi-monthly payments as they perform the work. If one person needs money for materials up front for a project, then they may ask for a deposit to purchase those materials. It is usually a matter of who needs money and when. There is not a right or wrong to how payment is made.
Hand-in-hand with money is negotiating how payment is to be made. This “haggling” is what negotiating is about when you’re talking dollars and cents. And once you ask for that amount, be prepared for the other person to either agree to it, or to counter with a lesser amount or different offer altogether. When you want to ask for more money, be sure that you can explain why you should have more, that what you’re selling is worth what you’re asking for. And remember to think long and hard about things like taxes, delivery fees, and reimbursable expenses. Once you see that it is not just some random number plucked out of a hat, you can negotiate it better. Break down prices into their smallest components so that both of you can see how the price was determined. Here are a few of the things that are important to negotiate in any contract.īefore you start talking how much, talk about what the money represents. But some things are more negotiable than others and make a bigger difference overall to both parties. What’s negotiable in a contract? Almost everything. Remember, you are entering into an agreement with someone, and trying to play it heavy-handed is hardly the way to ensure success or longevity in any business relationship. That how you will both ultimately get what you want. It’s all about reaching a compromise by being ethical, fair, and reasonable by setting your emotions aside by asking questions and listening carefully and by putting yourself in the other person’s position to better understand their needs. Negotiating a contract is not and should not be an intimidating process.
Negotiation is part of the process whenever you are establishing a work relationship with someone. And it doesn’t matter who presents the contract. Once they submit that customized contract to their client for signature, it’s usually time to negotiate. When someone buys a contract template from me, they have to customize it to meet the needs of their small business.