Greenlight Guides

How to Negotiate with Service Providers

When Planning a Meeting, Always Negotiate

If the question is when to negotiate, the answer is always! But many people are intimidated by the idea of bargaining, especially if it is not something they have to do every day. Whether you're booking a meeting space or planning a banquet, it's important to remember that price is almost always negotiable, and you won't get the best deal if you aren't willing to ask for it. Here are some tips for knowing when and how to negotiate.

• Knowledge=Power Do your homework. It is to your advantage to know the range of prices the vendor normally charges for the products or services you're requesting. Other things can be useful as well, including knowing what other events are going on at the same time, what previous deals the vendor has made, etc.
• The written price is never the final price. Every vendor will have an official rate card, but don't assume that it's the final word on prices or terms. For example, if a photographer offers a two hour package and a six hour package, she might still be interested in negotiating a three or four hour package to suit your needs.
• Avoid being the first to name a price. If you are asked for your budget, don't lie, but try to avoid giving a number by saying that your budget isn't finalized or that you are still researching or shopping around.
• It never hurts to ask. Ask for what you want up front. Remember that negotiations are a discussion. You might not get everything you want, but you won't know unless you ask.
• Negotiate with the person who has the power to say yes. Ask to speak to the person who can negotiate off the official rate card to avoid wasting everyone's time, and make sure that your superiors have given you the power you need to be effective.
• Don't make a concession unless you receive a concession. This rule keeps a negotiation balanced. If you accept a higher price than you want to pay for one thing, be sure to try to get something else in exchange. Remember, however, that this rule works both ways.
• Know your bottom line. Know for yourself exactly what you will and will not accept before you go into a negotiation.
• Terms are as important as rates. Terms are often some of the easiest points to negotiate. Whenever possible, avoid form contracts; they usually favor the party providing the form. Make certain that the contract is easy to read and precise before you sign. Ask to change any language that you don't agree with or don't understand.
• Get everything in writing. This is like having insurance: hopefully, you will never need to use it, but it's important to have in case you do.
• Be willing and able to walk away. Being able to walk away from the table gives you the power. Try to always give yourself options and have a backup plan.
• Remember the relationship. In a negotiation, the ideal situation is win-win – the object is not for the other person to lose. Don't burn any bridges, and remember that you may need to work with this vendor again.