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So you’ve identified a prospect, presented an offer and you have a verbal acceptance. The deal is closed except for one detail… you need a signed contract. And in this case, the devil really can be in the details!
According to World Commerce and Contracting, the average cost of a simple contract is $6,900 rising to more than $49,000 for more complex agreements. In other words, time is money and it is critical that the contact process start out on the right foot.
Keys to a successful contract process
Let’s examine the contract process and what you can do to ensure a smooth and efficient path to signature!
1. Standardized offerings
You will want to maintain some level of flexibility; however, standard service offerings can greatly simplify the proposal and contracts processes. If you are a manufacturer utilizing a third-party servicer, your service offerings to the marketplace should be aligned with service provider’s offerings.
2. Clear proposals
A clear proposal is both concise and comprehensive in communicating your offer to the prospect. Once accepted, a well-written proposal provides an excellent reference for contract development.
3. Contract templates and checklists
A well-maintained repository of contract templates, standard clauses, and favorable negotiating positions not only speeds up the contract process but also ensures that all critical elements are included in the final contract. Develop required templates (non-disclosure agreement, master service agreement, statement of work, etc.) for each standard offering and maintain the repository as your business evolves. Utilize checklists to ensure that all critical terms are included in your contracts. This step is crucial if your prospect wishes to write the contract on “their paper” where you do not have the benefit of using your own contract template.
4. straightforward language
Statements of Work (SOW), in particular, should include language that is clear, straightforward, easy to understand and implement. Clear and complete contract language can speed up the contract process and reduce future misunderstandings.
5. meaningful communications
Negotiate in good faith, listening carefully to your prospect and keeping your mutual objectives in mind. Consider reviewing "lessons learned" identified during the negotiation process and implement modifications to your contract templates that will be beneficial in the future.
6. contract implementation
Monitor contract use following execution – are all stakeholders able to understand and implement terms? A KPMG survey of outsourcing suppliers found that without close contract governance, businesses stand to lose up to 40% of a contract’s value. Follow through so that you get the greatest value from the relationship documented by your contracts.
The burroughs partnership
The experts at Burroughs can help you structure a set of offerings that will not only be attractive to your customers but will cover all required services such as site surveys, installation, upgrades, and remedial and preventative maintenance. This will provide your team with a straightforward playbook for including services in their proposals that will lead to a long-lasting and beneficial relationship.
By leveraging efficient best-in-class contract methodologies, Burroughs can cut the lengthy process time from months to weeks, meaning devices and equipment are deployed faster and your business maximizes ROI.
Bringing It All Together
As the largest independent services provider in North America, Burroughs knows the importance of delivering on our commitments to customers across the full range of payment and transaction automation, unattended self-service technology, robotic automation systems, and connected IoT devices.
Burroughs is the partner you want in your corner to help you optimize your contract process.
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