Friday, March 22, 2013

16 Ways to Avoid a Haircut, Post 8

This is the final installment in an eight part series on how to resist price concession requests. Each two new tips will be posted each weekday for eight days.

When discounts are inevitable, reduce their impact using these tips.

15. Negotiate the contract term. Companies routinely request contract terms of two and, more frequently now, three years with terms and conditions expected to be locked in throughout the extended term. Ask for the contract term to be reduced to a one year term in order to allow for an appropriate learning curve and the experience in working together.

16. Negotiate discount escapes. Discounts are a reward for mutually beneficial working relationships. The moment the balance tips away from one party, the terms of the relationship necessarily should be reviewed. When bills are paid late, are suspended for what ends up being unwarranted review, paid partially or otherwise slow or obstruct cash flow to the law firm, the discount will be voided. The agreement should make it clear that certain reasonable or validated billing issues will not subject the company to the void of discounts, but other circumstances within the control of the company’s timely payment of bills will.

It goes without saying, if you would like to talk about training your lawyers in resisting pricing concessions, please give me a call. It costs nothing to talk.

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