Contract Negotiations Best Practices Video
In this video I’ll share 10 Tips that can help you close more deals in your contract negotiations. Our focus is on creating a ‘win-win-win’ mindset of collaboration so that we can negotiate a deal that works for all sides.
Why listen to me?
Because I can help you.
- 20 years in contract negotiations – gamut of hospital sales, insurance & financial services, and real estate contracts.
- 10 years specifically in medical device and pharma sales
- Closed over $90+ million on hospital contracts for individual Hospitals, Systems, and GPOs
- Business Acumen: Contracting Analysis, Drafting Agreements, Negotiations, Formulary/Protocol projects, Supply Chain, GPO, and System Agreements, Reimbursement, T&C’s
If you like my tips, connect with me so we can help each other…
Contract Negotiation Best Practices – Summary of Tips
- Right Attitude
- Know Your Customer
- How to use Evidence
- Don’t be Hasty and Miss the Way
- The Influence of Others
- What am I Buying?
- Be Creative with T’s & C’s
- Connect the Dots
- Cross the Goal Line…and Beyond
Contract Negotiation Best Practices Explained…
Tip 1 – Right Attitude
- me vs them vs US.
- Focus on the WHY.
- Focus on Collaboration
- Don’t take it Personal – even if it gets nasty – everyone has a job to do, some people are trained to try to use manipulation/aggression to get what they want. Combat Aggression with Calmness
Tip 2 – Know Your Customer
- Sun Tzu (every battle is won or lost before it is fought).
- Quantitative and Qualitative Analysis
- Pre-meetings to gain intelligence.
- Talking to KOLS who won’t be at meeting.
Tip 3 – How to use Evidence
- Provide Data to backup your claims.
- Examples: value sheets, usage history, comparison to similar customers.
- Review real situations of benefits at this institution
Tip 4 – LISTEN
- Let the customer talk. Listen. Take notes.
- Really HEAR what they are saying.
- The pearls they provide are the keys to really understand what they want/desire/NEED in order to get the deal done.
- Example: price vs reimbursement (solution opportunity = real value)
Tip 5 – Don’t Be Hasty and Miss the Way
- Use the Wisdom of Solomon
- If things are going south, take a breather, don’t agree to do things under pressure.
- If don’t know all answers, Get back to them, continue moving forward.
- Remind everyone of the goal.
Tip 6 – The Influence of Others
- Using your Pseudo Sales Force
- Priming the Pump
- During Negotiations, Before the Close
Tip 7 – What Am I Buying?
- Ensure contract signers know what they are buying.
- Often sigs are not users. Do they really understand the product?
- Example: Value Sheets.
- Focus on VALUE vs just bottom line pricing.
- Focus on what’s really important
- Example of Neonatal Product/Most Fragile Patients
Tip 8 – Be Creative with T’s and C’s
- Offer desired ‘premiums’ (free training, reimbursement advice, extra equipment/supplies, etc).
- Adjust contract time period.
- Customize T&C’s where possible.
- Offer system agreements.
- Use volume based pricing.
Tip 9 – Connect the Dots
- Trace the path from your product to their ‘sales’ to their customers’ happiness.
- Create a Win-Win-Win Mindset.
Tip 10 – Cross the Goal Line…and Beyond
- Keep the ball moving towards the end zone with all parties.
- That means follow-up on what you promised to deliver.
- Follow-up on customer questions/ideas.
- Keep pushing to the close.
- BUT is also means follow-up AFTER the deal is signed.
- Ensure the customer is happy and that they are using the product effectively.
- Offer them ongoing training and touch points.
- Stay involved.
- Keep them happy and develop them as a partner who will not only be happy with you but will tell others too.
These 10 tips have helped me achieve contract negotiation and sales success for 20+ years. I’m certain they can help you too. And if YOU have a tip to share with me, please do so.