Each year, you sit down and look at your annual contracts with your vendors. It takes time to negotiate these contracts, so normally you think that what’s working shouldn’t be changed.
With changes in the supply chain, issues with getting the products you need and other concerns, though, now may be a good time to review your contracts and avoid resigning them without knowing that they’re working in your best interests.
Contract renewals help you negotiate for more
One of the nice things about contract renewals is that you can sit down and think about how the contract is working for you and if you need to renegotiate it. For example, you may want to look at the annual payments made by you to the vendor and renegotiate if you want to increase the number of products you’re buying or negotiate down your costs.
You may be able to negotiate to earn more, pay less and have a better deal overall.
Review your contract to resolve problems
The end of a contract is a great time to look at the problems that you’ve had to deal with and how you want to address them in the future. Maybe you didn’t have penalties for late shipments included in your last contract with your vendor of choice, but if they regularly turned up late, you may want to add those in.
You can also change timelines, alter quantities and take other actions if you review the contract now to resolve any problems that may have come up in the past.
Your contract should protect your interests as a business owner now and in the future
It’s important to have contracts that protect your business. You want to know that the contract protects your bottom line while also preventing liability if something goes wrong on your end.
A good contract can help you get the most out of arrangements with your vendors and make it clear that you’re going to hold others accountable if they don’t stick to the agreement. Check your contract before it lapses or automatically renews, so you can make alterations if necessary.