Vendor negotiations can often be more of a drawn-out waltz than a country boot scoot. So how do you keep your toes from getting stepped on? There are three key areas to concentrate on that will help you succeed when working with vendors — and won’t leave them feeling like you just took them to the cleaners.

Preparation: This could be the most important step. Before you begin, you must figure out where you want to end. What do you need to come away with? What can you afford to leave on the table? Which parts of the deal are open for compromise, and which ones aren’t? In addition, you’ll need to have all of the nuts and bolts in your toolbox: price, features, service, warranties, etc.

Seek win-win: It’s OK to negotiate a contract that both sides are happy with. Both of you should share in the risks and the rewards. Part of a win-win contract is arriving at a price both parties feel is fair. This is not a mercenary experience — you’ll likely be dealing with the same vendors again the future, so don’t burn any bridges.

What’s negotiable. Sure, the old saying is that “Everything’s negotiable.” But you know where you’re really willing to bend, and just how far. Some vendors will concede a bit of turf on price, but you need to be prepared before you try to stake that out. If possible, find out what others have paid your vendor under similar circumstances. Also, it’s often wise to tie together two or more aspects of the deal when negotiating a compromise. “If you give us this, we’ll give you that in return.”

Whether you’re working with small contracts or large contracts, the stakes and the formula for successful negotiating aren’t all that different. Remember, vendors will have their own agenda too, and it’s not a win-lose relationship.

Tags: contract, negotiate, vendor