How to Negotiate via Binding Offers on SPECCX

Oct 22

In the fast-evolving world of agricultural commerce, SPECCX is revolutionizing how farmers and buyers connect. This digital marketplace empowers producers and purchasers of specialty crops, proteins, grains, and more to negotiate directly — cutting out unnecessary middlemen and streamlining transactions. One of the most powerful tools on the platform is binding offers.

Let’s explore how to negotiate effectively using binding offers on SPECCX and close deals with confidence.

What Is a Binding Offer on SPECCX?

A binding offer is a formal commitment to buy or sell a commodity under specific terms. Once accepted, it becomes a legally enforceable contract. Unlike non-binding offers, which are more exploratory, binding offers lock in price, quantity, delivery terms, and other conditions agreed upon by both parties.

Step-by-Step: Negotiating via Binding Offers

1. Create Your Profile and Inventory

Start by registering on SPECCX and setting up your farm or buyer profile. A seller creates a profile based on its history, safety audits, insurance coverage limits, etc. A buyer creates a list of threshold values of farmer-attributes. Then, a farmer creates an inventory on SPECCX. Likewise, a buyer creates a list of items it would like to purchase. Alternatively, the buyer can browse the non-binding offers of farms, and vice-versa.

2. Make Non-Binding Offers Designed to Match

Farms make non-binding offers to sell, and buyers make non-binding offers to buy. SPECCX’s matching algorithm matches buyers with suitable farms based on the terms of their non-binding offers with respect to commodity type, quantity, price, location, and other terms. A farm is suitable to a buyer if the buyer has approved of the farm through the SPECCX vetting process. A buyer is suitable to the farm if the farmer has approved of the notices placed in SPECCX by the buyer.

Ultimately, SPECCX will match a buyer and a farm as to a given product in a given quarter of the year if (1) their offers match and (2) each has indicated that the other is suitable.

3. Initiate the Binding Offer

Once matched, both parties enter into a negotiation when either party can initiate a binding offer. This includes:

Commodity details
Price per unit
Quantity
Delivery terms (location, date, method)
Payment terms

4. Negotiate Terms

Before accepting, both parties can message each other directly on the platform to negotiate. You might adjust:

Delivery dates to align with harvest schedules
Quantity based on availability or demand
Price based on market conditions or cost breakdowns using SPECCX’s Cost Calculator

5. Accept and Finalize

Once both sides agree, the binding offer is accepted and automatically converted into a contract. This contract is stored within the platform and includes traceability features to comply with FSMA (Food Safety Modernization Act) standards.

Tips for Successful Negotiation

Know Your Costs: Use SPECCX’s built-in cost calculator to understand your farm’s unit economics before making an offer.
Be Transparent: Clear communication about quality, delivery, and expectations builds trust.
Leverage Traceability: Highlight your compliance with FSMA and traceability features to attract institutional buyers.
Stay Flexible: Be open to adjusting terms to meet buyer or seller constraints—especially for forward contracts.

How to Enter a Binding Offer

A seller goes to the SELL screen, selects a product, finds the non-binding offer of interest for that product, and clicks on the Agreement button on that row. If a pending agreement exists, its terms will appear. There may be more than one pending agreement. Pick the pending agreement of interest and click the edit icon button on the far right of that row. In the Edit Record window that opens, click the drop-down button where the choices are “Approve, Cancel or Counter”. By choosing “Approve” and hitting SAVE, one makes a binding offer at the current terms of the pending agreement. By choosing “Counter” and clicking SAVE, one makes a binding offer at the terms just entered - maybe the seller changed the unit price or the quantity or the Shipping Terms from the terms of the pending agreement. So, choosing “Approve” or “Counter” submits a binding offer. Choosing “Cancel” ends the negotiation.

Everything works the same for a buyer except that a buyer goes to the BUY screen. Once there, a buyer chooses a product and finds the non-binding offer of interest for that product and clicks on the Agreement button on that row. If a pending agreement exists, its terms will appear. There may be more than one pending agreement. Pick the pending agreement of interest and click the edit icon button on the far right of that row. In the Edit Record window that opens, click the drop-down button where your choices are “Approve, Cancel or Counter”. By choosing “Approve” and clicking SAVE, one makes a binding offer at the current terms of the pending agreement. By choosing “Counter” and clicking SAVE, one makes a binding offer at the terms just entered - maybe the buyer changed the unit price or the quantity or the Shipping Terms from the terms of the pending agreement. So, choosing “Approve” or “Counter” submits a binding offer. Choosing “Cancel” ends the negotiation.

Why Binding Offers Matter

Binding offers reduce uncertainty, protect both parties, and accelerate deal closure. They’re especially valuable in volatile markets where timing and trust are critical. With SPECCX, you gain the tools to negotiate smarter, faster, and more transparently.

Lee Greer