We covered timely contract renewal in the previous post.
Let’s look at another high end activity, which is again based on direct customer contact.
- Negotiation of contract terms
This activity is again very critical to the business. Your client will really need to extract the best of terms from its customers. Ideally, the most critical component is getting faster payments and shorter credit periods.
The resources that you will need will be at least at the level of junior attorneys / sales decision makers.
This activity will need a lot of market research inputs, before you can actually get to the stage where your team is accountable for negotiations. These will comprise of data on market standing of the customer, terms and credit periods he commands from your client’s competitors, size and dominance of the customer, availability of other similar customers etc.
Once you have a first draft of the contract, you will need to reach out to the customer and discuss and agree on the contract terms. Renewals are usually easier than new contracts.
In case of disagreements, you will need to identify acceptable terms, run it through the legal / sales groups as may be applicable, get sign offs and then close the contract. This will have both a verbal and written customer interaction.
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