What Can Be Negotiated?

As a professional negotiator, who for more than three decades has negotiated hundreds of hotel and venue contracts, as well as numerous business contracts of a variety of different types, I have often been asked what can one negotiate, and why is negotiating meaningful. While this would require a far more extensive discussion to fully explore, the simple answer is that almost everything is, in fact negotiable (particularly under the correct set of circumstances and conditions), and that quality negotiations are very often the difference between a successful or less satisfying result. While this is true regarding many different aspects of our lives and activities, it is often most readily obvious when it comes to events.

1. In my experience, I have found that a quality, professional negotiator will save an organization a significant amount of time, aggravation and wasted resources. When negotiations are done correctly, not only should an organization save far more money than what they are paying for the negotiator's services, but they should be able to count on the professional to make a series of meaningful recommendations that should provide more value, enhance marketing efforts, and locate additional areas of significant efficiencies. My personal policy is that I guarantee my clients a savings that will exceed the fee I charge by a significant percentage.

2. Many individuals negotiate, but only a quality professional negotiator will get an optimum deal made. Great negotiations come from had work and effort, an enormous amount of homework and research, emphasis on developing relationships based on mutual respect and integrity, attention to details, needs analysis, and knowing what can be asked for, and what cannot. I equate it to someone that wants to purchase a home. If someone really wants a house, he must know what other comparable properties go for, and then, whether he wants to be in a position to perhaps receive and entertain a counter - offer. If someone is only willing to pay a particular figure with no flexibility, then little strategy is needed. But, when someone wants the house and is somewhat flexible, he must be certain that his offer balances his ability to get a great deal, with a realistic possibility of at least receiving a counter - offer. If the offer is too little, the seller may merely consider it not to be serious, or even worse, insulting. That's why an essential duty of a professional realtor is to be a quality negotiator. If someone is unrealistic in demands when negotiating with a hotel, the long term result is generally less than optimal.

Not everyone is a great negotiator. Not even every professional negotiator is. Before hiring a negotiator, you must feel conformance and confident in his abilities and performance. Great negotiators ask questions, but spend far more time listening than talking.

Good Negotiators Know The Importance Of A Memorandum Of Agreement

Negotiations can be long, drawn-out affairs. When the final agreements have been reached, all of the negotiation styles and negotiating techniques are put away, and everyone stands up, shakes hands and leaves the room, right? No! There is one more important step in the whole negotiation process before you're done - you need to create a memorandum of understanding.
Why Is A Memorandum Of Understanding Needed?
I can't tell you how many negotiations I've seen come unraveled shortly after both sides of the table seemed to have been able to reach a negotiated agreement. What caused this deal to fall through was one simple thing: time.
When you wrap your negotiation up, you still don't have a signed contract. Instead what you have is a verbal agreement on the major issues. What's still missing is a written document that both sides have been willing to sign.
This causes a problem. As time slips by after the agreement has been reached over the negotiating table, people's memory of what was agreed to (or not!) starts to change. All too soon, you'll discover that the two parties who thought that they had reached a deal now believe that they are still far apart on a number of different issues.
How Do You Use A Memorandum Of Understanding?
This is where a memorandum of understanding comes in. This is a document that you create at the tail end of your negotiation in order to capture what the agreement is that has been reached based on how both parties currently see it.
One important point that you are going to have to keep in mind is the simple fact that you'll never be able to capture all of the negotiation details in your memorandum of understanding - and you shouldn't try to. Instead, what you need to focus on is documenting the highlights of the agreement - the major issues.
Let the memorandum of understanding that you create document the major issues that were agreed to. Taking the time when the negotiation has wrapped up to perform this one last step will end up eliminating a great deal of future confusion and will ensure that the deal that you've reached today turns into a signed contract tomorrow.
What Does All Of This Mean For You?
The negotiation definition tell us that a negotiation can stretch over days, weeks, or even months. When the final agreement has been reached, it can be tempting to walk away and let the lawyers draw up the final paperwork. Don't let this happen!
So many different things were discussed during a principled negotiation that both sides of the table need to be reminded of what they agreed to before they leave the room. Create a memorandum of understanding that documents what both sides think that they agreed to.
There may be issues that still come up as the final paperwork is created. However, taking the time to create a memorandum of understanding will eliminate many of these issues. Do the work now and save yourself the heartache later on!