Renegotiation

How do you renegotiate a contract when you don’t have any leverage?

The answer is: with difficulty. But here are some suggestions that might help if you are ever in that situation.

Build a Narrative

Find some kind of narrative which supports your argument for change. A change in the market, or a forthcoming change in the market, is a good place to start. Something like this: when we put this deal together the market was XYX, but now it looks like there’s been a significant shift in 123 and the market is going to move to ABC.

Go High

Show how the proposed change better supports the strategic direction of your partner.

Low Cost/High Value

Offer something in return. Try to find some concessions which you can make which are low cost to you, but high value to your partner.

Make it Personal

Don’t just think of it from the point of view of the company that you are doing business with. Think of it from the perspective of the person you are dealing with on the other side. They are going to have to relay your arguments within their organisation and you will benefit from their support – what arguments can you put forward that make it a good change for them personally?