Presenting competition as a viable alternative has proven to yield significant advantages in negotiations. Highlighting current offerings from competitors allows you to leverage their pricing as a basis for negotiation. Communicate that you've received lower quotes from other providers and that this will impact your purchasing decision unless a competitive deal can be reached. It's crucial to portray the risk of switching as realistic to invoke urgency from your negotiating partner.
Utilizing the tactic of a multi-year commitment can serve as leverage in pricing discussions. Highlight that your organization rarely commits to such terms unless substantial discounts are offered. By expressing the rarity of multi-year contracts and the financial scrutiny around such decisions, you can strengthen your negotiating position considerably.
If your organization is growing and increasing the number of users is on the table, you can use this as leverage to negotiate a better rate. Emphasize that growth typically warrants a reduction in costs due to economies of scale. Make sure to anchor your discussions on lower rates as the volume of usage increases, which should be reflected in your pricing structure.
Review and analyze the existing eCommerce tools in your current suite. Assess if consolidating services with 121eCommerce is feasible, and utilize this information in your negotiation. Present findings about potential overlap with functionalities from other providers, which can help to reduce costs or eliminate unnecessary functionalities.
In case you are facing a large uplift, focusing on a reduction of your current scope can create leverage against steep price hikes. Articulate the necessity to scale down the agreed services to align with your current budget to discourage excessive increase proposals. This tactic works by using past usage data to support a logical reduction, thus convincing the supplier to align pricing more favorably.