The term ‘Negotiation’ is one you either look forward to or dread, However, it is a necessary evil that we all encounter in some form both in business and in our personal lives. Negotiating can seem intimidating for some, but once you know the tricks of the trade anyone can learn to negotiate effectively and successfully.
Below we have added some tips for when you next have a contract in front of you that you need to review and haggle over. Try some of these techniques – you may be surprised at what you can achieve.
Compartmentalise To Areas
Compartmentalise the different areas of your contract you wish to negotiate and reach an agreement separately on each. It may be that they will have more wiggle room in some areas than others. For example, with a venue contract it is often easier to lower a Room Hire than it is a Bedroom rate. Negotiations can collapse by one party taking an ‘all or nothing’ approach, which can create a roadblock and cause unwanted delays. The mentality of ticking off smaller sections rather than fighting one big fight will help keep a positive approach from both sides.
Think Reasonably And Realistically
Contracts are created to be mutually beneficial. Try not to lose sight of your end game, but also, try not to lose sight of theirs either. Be reasonable with your negotiations and expectations. If you have a DDR of £90 and you want it at £60 DDR, you’ll be laughed out the building. Be realistic you’re your expectations.
Don’t Be Demanding
It’s polite ask someone to do something, rather than be demand it done. The latter only gets their back up and causes friction and hostility. If you are experiencing issues by the other party’s hard-line approach, ask them “why”? Find out what their reasons behind their approach is? Why are they saying ‘no’ constantly? Questions breed discussions, which in turn provide you more information to act on.
Advice Is Key
There is no shame in asking for help, but people don’t do it enough. Talk to industry experts, talk to colleague who may have done it before, or just simply give Hippo a call. Establish from them what the norm is and about what you are looking to achieve. Is it realistic? A good, neutral, industry expert should see it from both sides and can provide you with good advice from years of experience.
Don’t Rush
Too often we see venues and suppliers placing unrealistic time frames on contract signatures. Contracts take time, particularly if they have to go via legal, so it’s not realistic to get it back within 3 working days. Be open about your internal processes and ask for a realistic deadline. Take your time over reading through the contract if you need it. Don’t rush. Most people don’t enjoy negotiating and want to get it over with. This is completely understandable, however taking time will result in a better outcome.
Try Phone Calls
Why is everyone so scared to pick up the phone nowadays? We are a generation of keyboard warriors. Written communication can only go so far in conveying emotion and context. Emails can be interpreted many different ways, so try having a phone call. You get so much more from a phone call and find out so much more information. It also allows you to build a rapport with the other party your negotiating with. You could even bring your “bad cop” on the call with you…
Have A “Bad Cop”
The age old “good cop, bad cop” trick does actually work. Fundamentally, you don’t want to dampen your relationship with the supplier prior to your event, and it can be uncomfortable for both parties if this does happen. Having a “bad cop”, for example a stakeholder, who plays hard ball and is tougher on the other party can be used to your advantage. You can remain as good cop and have an unfractured relationship with the other side once all is complete.
Look At The Bigger Picture
If your event is looking to repeat the following year, don’t forget to mention this. Ask the supplier to see the bigger picture and explain it to them. The larger the cluster of events, the better your stance for negotiation. Be intelligent though. If you wanted to also contract on a second year add in an “opt out” clause for Year 2. This would usually be ca. 10 days after the first event and have no financial repercussions.
Hippo offer Event Project Management and Global Venue Finding services. Contact us today on 01372 460 100 or events@hippoevents.co.uk to see how we can assist.