Sharpen your negotiation skills before taking on the next job.
By nature, most people don't like haggling. But for the IT consultant/contractor, negotiating is a constant part of doing business. Poor negotiating can easily impact an indie's financial success.
By learning a few basic skills, and following some expert tips, hammering out that next job contract could be easier, less stressful and economically rewarding.
The right attitude
Basically, most people wing negotiations, says G. Richard Shell, founder and academic director of the Wharton Executive Negotiation Workshop at the University of Pennsylvania's Wharton School in Philadelphia.
Shell, who has coached executives in a variety of professions, has authored a book, Bargaining for Advantage: Negotiation Strategies for Reasonable People (Viking, 1999). The business expert says that being willing to listen, focusing on the other party, and asking loads of questions are all key to successful negotiation.
"Research shows that you can get by with winging it, but you're likely leaving enormous amounts of potential advantage on the table by not spending time thinking more carefully about a specific aspiration and adjusting it in your mind," states Shell in a recent interview in the Harvard Management Communication Letter, a newsletter from Harvard Business School publishing.
Get smart
Shell, as well as other business consultants, offers several tips for sharpening negotiating skills when it's time to hammer out that next project contract:
Know when to fold 'em
Experts and consultants say a big part of successful negotiating is knowing when to walk away from the table, though that's clearly not the ultimate outcome for either party.
As one contractor relates, determining contracts and setting rates often involves several issues such as whether it's a straight singular job or a blending of services.
"When I negotiate, I look at the overall picture. If I can sell hardware and software, along with my experience and programming, I'll install and configure for a reduced rate to help the customers with the return on investment," says Steven Anagnostis, a contractor who runs his own shop called Twin Technology Solutions.
But, if you find yourself haggling over an hourly rate, it may be time to walk away since the negotiation isn't being taken seriously by the other party, he warns.
"My rates are less than the norm, since I'd rather have several customers at a lower rate than one or two at the higher rate. I always make sure I know what my walk-away price is before I sit down to negotiation," he adds.
