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Research also important in contract negotiations

9/28/2011

When dealing with software contracts with vendors, often one of the major concerns is price. However, Multichannel Merchant says that some business owners may focus too much on price and neglect other concerns.

First, the source says entrepreneurs need to evaluate the overall business aspects of the contract, and not just the price. These can include the overall cost of ownership, cash needs and payments, delivery deadlines and other requirements.

In addition, the source noted that many vendors or developers may offer price breaks for signing a contract before the end of a quarter or fiscal year. While these offers can be beneficial, it's important not to make a quick decision that might cause further problems down the line.

The source also recommended that if business owners don't feel qualified when negotiating or writing these contracts, they may want to consider hiring an attorney experienced in intellectual property law.

Overall, while taking the time to research and plan ahead of a negotiation is a significant undertaking, it can pay off in better terms of use and other details in the end.