Contract negotiation is key to the success of any business. It’s one thing to make an offer, but it’s another to learn how to make an offer that will be accepted. The only way you’ll ever find out is by learning how important it is.
A non-negotiated contract is often bad for your business. It can damage your reputation and put you at a disadvantage, and can do serious harm to your legal rights and responsibilities.
If you don’t learn how to negotiate (and not just with customers), you’ll end up paying more – and potentially more money – on your contracts than you need to. This will be the case whether the contract is for a large amount or a small amount of money. If there is no negotiation, there is no way for anyone (or no one) to know what the final price should be.
To start negotiation you need to know your price, and your price should be one that is fair. You should not pay more than you can afford to lose.
Furthermore, it’s good practice to make two offers. If the other side rejects the first offer, then negotiate. If they reject the second offer, then you have a very clear idea of what your final price will be, and there is no longer any confusion about how much it would cost to pay the other party in full.
The worst thing that can happen if you don’t negotiate is that your business ends up paying more than it should for something that will break easily or take a very long time to do what it needs to do.