Manage Your Next Research Contract from a Position of Strength
How important is it for your firm to renew your research contract at the best rate? At first glance, the answer seems obvious — of course it’s very important. Your firm wants to maximize every dollar invested in research by getting the best rate possible. Unfortunately, hitting that perfect ROI target isn’t always easy. Contract renewal periods always seem to pop up when business is booming and the need for all hands on deck is at its peak. This can make securing the best renewal rate a lot more difficult and cause issues for the firm down the road.
Common Mistakes in Contract Renewal
Not renewing your contract at the best possible rate is a decision with consequences that can impact your firm for years. It is not a task that should be put off until the last minute, nor is it one that should be managed as an afterthought.
Some common problems that can occur include:
- Agreeing to introductory rates that balloon year after year, inflating the total cost of your contract at its conclusion.
- Hidden fees for research and services outside of the scope of the contract.
- Changes that are too minimal to tackle your firm’s pain points from the previous contract.
- Failure to obtain the whole firm’s buy-in on needs and features, or even which vendor to utilize.
These are mistakes that are easy for any law firm to make, especially when you consider that most firms dedicate the majority of their efforts on achieving the best results for their clients, not worrying about administrative functions that come up every three years or so.
The best way to avoid these pitfalls is to:
- Monitor your renewal periods carefully.
- Prioritize contract renewal as a critical firm function.
- Approach contract renewal from a position of strength.
When it comes time to discussing the new terms, it is critical that your firm’s representative can make a decision from a position of strength.
That means:
- Knowing exactly what you are entitled to under the agreement.
- Understanding the terms of your short-term and long-term rates.
- Knowing the total cost to your firm at the end of your contract, not just the beginning.
- Having access to all the information regarding your terms and conditions.
Legal research is an important function in your firm that allows you to serve your clients to the best of your ability. Ensure you get the best return on your research investment by avoiding common pitfalls of contract renewal and negotiate your new terms from a position of strength.
Legal Counsel Consulting has the resources to evaluate contracts to assure competitive pricing.
If there is any way I can help or if you would like to schedule a brief conversation, please feel free to contact me.
Best regards,George