Presenting competition as a viable alternative is crucial during negotiations. By stating that another vendor has offered a more competitive price or additional value, you can push the current supplier to reconsider their pricing or package. Emphasize your preferred choice but make it clear that financial constraints may push you to alternative options if a mutually beneficial deal cannot be reached.
Reducing or removing uplift costs from the renewal discussion can be impactful. To utilize this tactic, anchor your budget requirement below the proposed uplift percentage and highlight the expectation for price stability as your usage level either remains constant or is declining. Stress that many partners do not apply uplifts when expanding product suites, and be clear about your budgeting constraints.
Removing auto-renewal clauses is critical for maintaining leverage during negotiations. Make it clear to the supplier that your finance team will not approve agreements that contain auto-renewal language. Emphasizing this requirement upfront can help solidify your negotiation position and safeguard against unwanted renewals in the future.
If you need to include upgraded features, build your argument around security needs while pointing out that competitors provide similar features at no additional cost. This tactic can help in obtaining upgrades at lower costs or even without extra fees, as it reflects industry standards among competitors regarding security features.