Contract negotiation refers to the process between both parties of discussing and agreeing upon the specific terms of a business agreement to finalize a B2B sales deal. This includes negotiating pricing, deliverables, scope, payment terms, contract length, SLAs, cancellation policies, and other contractual details.
Strong negotiation skills help sales teams maximize long-term value for the business in the deal while also mitigating areas of risk. Understanding prospect negotiating styles, underlying motivations, and tradeoffs guides development of strategies so that both parties feel the outcome is a win-win.
Concessions and compromises during contract negotiations are normal but should be traded off strategically. Legal or Finance may advise on contract implications. Smooth handoffs and clear documentation ensure proper contract execution and management after signing.