| When outsourcing, it's important to know how to | | | | make a living. Generallyspeaking, providers have a |
| set a price, both the hiring company and the | | | | rate sheet that they follow in order to give |
| provider, as well as how to negotiate for a better | | | | accurate quotes toall of their prospective clients. |
| deal. The main thing to remember when you are | | | | But on the other end of the spectrum, providers |
| dealing with the issue of cost is that you want to | | | | must realize that hiring companies do nothave |
| make sure that both sides are getting a fair deal. | | | | endless pockets. They too have a budget that |
| A deal in which one side is getting a far better | | | | they must stay within, and they aregoing to be |
| value is going to be doomed from the beginning. If | | | | looking for the best quality work, for the lowest |
| the provider thinks that he or she is not getting | | | | amount of money. |
| paid enough, they will not give their best effort. | | | | Outside of the basic pricing structure and |
| And if a hiring company feels that they are paying | | | | techniques that differ from person to |
| a provider too much, they will not stop at | | | | person,anybody that is involved in outsourcing |
| anything in order to ensure that every last detail | | | | must be a good negotiator. By knowing whatyou |
| is in place. Finding a happy medium that both sides | | | | are worth, what you want, and how to get it, |
| can agree on is the best way to ensure a | | | | you will be able to be much moresuccessful in the |
| successful project for everybody that is involved. | | | | business world. |
| The tricky thing about cost is that each side will | | | | When you are negotiating, keep these tips in mind: |
| have their own guidelines and rates thatthey are | | | | 1. Keep an open mind. Even though you are going |
| trying to follow. The tips below are meant to help | | | | to be trying to get the most moneypossible from |
| you deal with pricesdiscrepancies: | | | | the other party, you need to keep an open mind |
| 1. The first thing that both sides need to do is | | | | and make reasonablerequests. Nobody is going to |
| communicate on the budget for the project. | | | | take you serious if you make pricing requests |
| In most cases the provider will issue a proposal to | | | | that areextremely high and non-competitive. |
| the hiring company that outlines thetotal cost of | | | | 2. If you are very close to striking a deal, the |
| the project. This will allow the provider to start | | | | best thing to do during the negotiatingprocess is |
| off within his or her pricerange, and determine | | | | to exercise a little bit of give and take. This goes |
| whether or not this will work for the company | | | | for both parties involved. |
| that is making thehiring decision. | | | | For example, if a provider is quoting a price of |
| 2. After the provider sends a proposal to the | | | | $3,000 for a ghostwritten businessbrochure, but |
| other party, the proposal will either beaccepted or | | | | the company's budget only allows for $2,500, |
| rejected. If the hiring company agrees to the | | | | both sides will need tocompromise a bit. A fair |
| terms that the provider outlinesin the proposal | | | | price in a situation like this would be $2,750. This |
| everything is good to go. On the other hand, if | | | | means thateach party is stretching themselves in |
| the provider's price ishigher than the budget will | | | | an extra $250. Even though it is not the |
| allow, the hiring company will many times send | | | | idealsituation for either party, it is probably the fair |
| back acounter offer. | | | | thing to do. |
| 3. If it comes to the point where the provider | | | | 3. Always stay professional during the negotiation |
| receives a counter offer, it will be up to himor her | | | | process. If you feel that you are beinginsulted by |
| to decide if they can complete the project for | | | | the other party because their prices or budget do |
| that amount of money. It is notuncommon for | | | | not fit your needs, there is noreason to get |
| the provider to send over another counter offer | | | | hostile. You will simply want to explain your |
| as a way to tie the finalknot in the deal. | | | | situation, and see if there is acompromise that will |
| 4. It is important for both sides to understand the | | | | make both parties happy. And if nothing works |
| position of the other party. If you are acompany | | | | out, there is noshame in walking away from the |
| looking to outsource a project you must realize | | | | deal. Remember, this is a business for both |
| that the contractors you arecontacting are | | | | partiesinvolved. Each side needs to do what is |
| professionals, and take on these projects to | | | | best for them. |