Q & A Table of Contents
Who Can Negotiate For Me When It's Over My Head?
From: Dave, Utah
Question: I am at the point in the development of my business that I am working with very big companies as clients. I have in the past done all negotiating myself, but now I need to distance myself from the negotiations because of the size of the prices we are negotiating as well as the fact that my experience level is low compared to the client's people.
The question is, how can I find a professional to come in and negotiate specific pricing and contract issues for my company? Where do I begin to look?
Response: The first answer to your question is that it would probably be in your best interests to get some negotiation skills training so that you have the personal capacity to handle all of your company's negotiations. Even if you can delegate the majority of negotiation work to others, if you are the boss, you still have to make the decisions about strategy and tactics as well as such substantive issues as price and terms.
In many companies the people who do the most negotiating with clients or suppliers are the folks involved in sales or purchasing. Lawyers are often utilized to assist in perfecting the detailed elements of contracts. It is also perfectly appropriate to utilize the skills of people responsible for specific elements of the ultimate deal: design, specifications, manufacturing processes, service, customization, etc.
'Hired gun' negotiators, people from outside your organization, can certainly contribute to the negotiation process. However when you use an outsider, you should be concerned about his/her credibility as a representative of your company. How deep is the outsider's knowledge of your company's products, processes, pricing considerations, long-term relationship interests, etc.? Using a 'hired gun' is best undertaken by making him/her part of your negotiation team so that one or more company persons participate in the whole process. That way your in-house team can enhance their skills to conduct negotiations themselves.
There is one sort of 'hired-gun' negotiator you may find useful: in many communities there are lawyers who act as house counsel on a retainer basis. They are not part of your full-time payroll, but still have the responsibility to represent your company in defined ways. Lawyers are often excellent negotiators -- although having a legal education is no guarantee of negotiation skill.
If your company is too small to hire a full-time salesperson, for example, you may want to look for an experienced manufacturers representative -- someone who is skilled at representing a number of clients. Perhaps a wholesaler would be an appropriate representative for you. On the other side of the coin, an experienced purchasing agent may be what you need.
Remember that no one has a better sense of your company's interests than the boss, the owners, the directors, and most (if not all) employees. People who understand their own or their company's interests are the ones who can do the best job as negotiators when the chips are down.
Good luck,
Steve
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