Let’s Renegotiate

Big Deal Excitement Can Blind Us

Imagine you have a massive deal in the pipeline. This is it, it is your ticket to the big time. You’re excited, as you should be. But is the deal a good deal or not? Sometimes our excitement lends us rose-tinted glasses; glasses that blind us to agree to terms or be overly optimistic for performance. We once experienced a client engagement where our excitement blinded us, which caused us to lose meaningful money, something we didn’t anticipate due to several terms within the deal.

How We Handled It

After recognizing the problem, we returned to the client mid-contract term to renegotiate the problematic details. To say we felt awkward would be an understatement. Our values are such that if we do a deal we live by the deal. However, we knew we could turn the conversation from “we need more money” into a positive for the client if we put them first and prepared meticulously.

We started by looking at the items in the agreement that were not working for the client. In solutions to those items for the client, it also cured some of our pain as well. We were able to then package reworking the deal in a way that was helpful for the client while making it workable and again exciting for us.

Next, we rehearsed over and over, anticipating every scenario. When our final, polished deliverable was ready, we rehearsed again. Then we repeated the process multiple times to revise and improve our perfected pitch. Every time we worked through the content, we would find areas of opportunity to make better or refine message. Ultimately, our diligence enabled a productive conversation. We learned that a well-executed, mid-contract discussion can work and even be positive.

Be Prepared For The Unexpected

At this point, you might think, “sounds easy enough.” You’d be mistaken. We encountered hurdle after hurdle. One of our tallest ones was that we needed to remain budget neutral. The question became, how do we remain budget neutral while also adding margin? Finding an answer took creativity and effort, but we found a solution.

By that time, we believed we were prepared. It was time to sign the amended contract. Then, unexpectedly, another challenge arose: the client was asked internally to reduce spending for the current year, so it was back to the drawing board. After much effort and many late nights, we devised a solution that benefited both the client and our firm. It wasn’t easy, but through persistence and collaboration, we transformed a setback into a shared‑success opportunity and deepened our relationships.

My Top Takeaways Were:

• Having a strong and trusting relationship with transparent communication is a must to start the re-negotiation process.
• Renegotiate for the client’s benefit, not just your firm’s margin. Find ways to show that it benefits them.
• Prepare relentlessly and think through content, objections, and objectives.
• Use clear, self-explanatory content. Remember that the telephone game distorts messages; avoid that by creating materials that speak for themselves as they pass through multiple layers of the organization.
• Enlist support across your organization and the client’s organization to maintain momentum.
• If you’re losing money, propose an interim solution to mitigate losses. Interim terms often yield favorable results.
• Come with a fresh proposal covering business terms and financials. Show historical context and explain why the client should sign the amendment. Remember to demonstrate the mutual financial benefit; make it a win-win.

Final Thought

Throughout the negotiations, trust the process. In the end, you did not close your deal in a day, so understand that you cannot renegotiate in a day. Persistence, attention to detail, and preparation are the keys to success.