Negotiation Stage¶
Final terms discussion and contract negotiation
Overview¶
Final stage before close, focused on terms negotiation, contract review, and closing.
Stage Definition¶
Entry Criteria: - Proposal accepted in principle - Budget approved - Legal/procurement engaged - Specific terms to negotiate identified
Exit Criteria: - Contract signed - Payment terms agreed - Start date confirmed - Handoff to delivery initiated
Common Negotiation Points¶
| Point | Flexibility | Approval Required |
|---|---|---|
| Discount | Up to 15% | Standard |
| Discount | 16-25% | Principal approval |
| Payment terms | Net 30 standard | Finance approval for Net 45+ |
| Scope changes | Minor adjustments | Project lead review |
| Liability cap | Standard terms | Legal review |
| IP provisions | Standard terms | Principal approval for changes |
Negotiation Tactics¶
Our Leverage Points¶
- Vendor-neutral positioning (unique)
- Compliance expertise (proven track record)
- Reference clients (social proof)
- Flexibility in engagement model
Common Objections¶
| Objection | Response Strategy |
|---|---|
| "Too expensive" | ROI articulation, phased approach |
| "Need to think about it" | Identify real concern, create urgency |
| "Competitor is cheaper" | Differentiation, total cost of ownership |
| "Legal needs changes" | Standard pushback, escalation path |
Contract Checklist¶
- Scope matches proposal
- Pricing and payment terms correct
- Start date and timeline realistic
- Liability and indemnification acceptable
- Termination provisions reasonable
- IP ownership clear
Stage Metrics¶
| Metric | Target |
|---|---|
| Negotiation to close rate | 85%+ |
| Average discount | <10% |
| Days in stage | 7-21 |