Why You Lost Your Last Telecommunications Contract Negotiation

Your wireless costs might increase because of COVID-19 – but they won’t if you follow these 3 steps.

telecommunication contracts Telecommunications expenses represent more of the corporate budget than ever before as telecom becomes such an integral part of any business. Unfortunately, negotiations gone wrongcan leave you stuck in a contract that costs more than your business can afford to spend. Figuring out where you went wrong before you go into your next telecommunications contract negotiation will let you get the best price for the services your company needs.

What Went Wrong?

Contract negotiations gone wrong often ends in the signing of a contract that does not appropriately meet the needs of your company. Here are the biggest mistakes that professionals make when they are working to negotiate telecommunications contracts.

  • Long-term commitments often favor the telecommunications company instead of your business. You get locked into a contract that can last up to 10 years. Since you lose the ability to renegotiate terms once you enter into a contract, it’s typically best to avoid longer contracts.
  • Early termination clauses that are included in telecommunications contracts make it difficult for you to take advantage of offers that better meet your needs or provide you with substantial cost savings. While most contracts do include stipulations that apply to early termination, some contracts require you to pay more than the value of the entire contract if you breach the agreement.
  • Some telecommunication companies invest heavily in current technology. While this will be favorable for your business in the present, what happens when technology advances and the company does not have the resources to purchase new equipment that will benefit you as a customer?
  • Exclusive contracts force your business to stick with one vendor. Retaining the opportunity to shop around for the best deal is essential when the corporate budget is on the line.

Tips For Successful Contract Negotiation

These methods of negotiating telecommunications contracts can help you get the best deal without making a long-term commitment that ends up hurting your business.

  • Ensure that you know what you are already paying for services before you work on negotiating a new contract.
  • Contact your current telecommunications provider to see if they are willing to offer discounts in order to retain your business.
  • Research new technology that could potentially benefit your company.
  • Stay informed about pricing and developments in technology.

The Value of Outsourcing Contract Negotiation

One effective option for reducing telecommunications costs is to outsource the contract negotiation process. Companies that provide negotiation services employ skilled professionals who know how to get the best deal for your business without compromising the scope of services that you will receive. Your company gains the benefit of having an experienced negotiator working to pursue contracts that allow the business to access the latest technology that is relevant to the company.


[author_bio username=”Ken” name=”yes”]

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