Winery Software and Solutions - Negotiating a Better Contract

Livermore, CA July 2, 2009 - Whether is it a new car, computer, television, house or business solution, no matter how happy you are with the decision, when you find out that your neighbor paid less for the same product it always creates a stinging bad feeling. So as to avoid that sting, we are sharing a few ideas on how you may be able to get the best price for any solution you purchase.

Fact: Some companies have set pricing. That means that the same price stands for all companies, big or small. Many companies provide extremely negotiable prices but you need to ask and YOU need to negotiate to get the best deal. This does not mean strong-arming anyone or creating an uncomfortable situation. Sometimes, it simply means asking the question... "Is that the best price you can give?" and then leaving the room silent as you wait for their response. But there is more you can do.

FACT: Knowledge is Power! You are in the "power-position" to negotiate when you are knowledgeable about your own business needs and about the solution you want to purchase.

Knowing exactly where the solution meets your needs and where it falls short will provide you with leverage. By being able to identify the short comings and the loss of productivity, additional costs or sales that may be impacted allows you to remind the sale person of those and power-down the price.

The decision for a service or software solution that is made today is often intended to last for years. Considering the 365 days in a year you have to use that software your decision can lead to hours and years of success or sorrow. Investing a few hours before your make a decision can increase that your decision supports your success.

Before you decide on something see an actual demonstration. Hearing someone explain how something works versus seeing a solution in action provides an incredible amount of information. And I will repeat - Knowledge is Power!.

Have the sales person show you how your specific accounting, inventory, sales process and other tasks you wish to accomplish will be performed if you select their solution. I have often heard claims of fabulous features and I also hear that a lot of details are omitted from the sales process. Details about additional exports and imports and worse are left out of discussions and those details could very well make your decision the wrong one. Simply put, take the time to see the software work.

Understanding your business needs often means bringing in your team members to see a solution in action. The more members of your team who see the solution, the better off you will be that no stone was left unturned and you understand as much as possible how everyone will be affected by the service.

I recently spoke with a business manager who learned this lesson the hard way. The manager of the business had not invested the time to see a complete demonstration of the service he purchased. He took the word of another business owner. The other owner was successful so he felt that she must have a good solution. When he implemented the expensive system it fell short of performing. He had invested tens and thousands of dollars on someone's recommendation and now stuck in a long term contract for service and support. What he failed to understand was that the business owner who recommended the system was actually not one of the people who had to use the system everyday. Day in and day out this is costing the man time, money and sales.

Software and hardware are not the only parts of a contract that can be negotiated. Know that most solutions have add-on costs such as training, upgrades, maintenance and support.

TRAINING:

1. Make sure the contract covers initial training and all that that en tales.
2. Identify how additional training will be provided and the respective costs.
3. Identify how new features will be trained and the respective costs.
4. Know if there are costs associate with training guides.
5. Know if new employees are trained and what the additional costs are.
6. Is the training by the hour or by information covered and the associated costs?
7. ** IMPORTANT - What is not covered in training that may result in charges down the road?