You should request the removal of any auto-renewal clauses in the contract. This tactic is effective as it emphasizes the need for negotiation flexibility and allows you to reassess the agreement before any renewal commitments. It is also a requirement for many buyers to avoid being automatically renewed into unfavorable contract terms.
If there is a need for upgrades for security or compliance reasons, you should leverage any statement from your finance or security teams regarding budget constraints. This tactic can convince the vendor to offer these upgrades at no additional cost or at a significantly reduced rate as other suppliers may offer similar security features without extra charges.
Push back against any proposed uplift by asserting that your budget could only accommodate a smaller increase or that the previous contract did not include uplift clauses. This tactic helps to safeguard against unexpected and excessive cost increases when there has been no significant change in the contractual scope.
Discuss offers received from competitors as leverage to negotiate a better deal. Presenting market alternatives can incentivize the vendor to match or reduce pricing, especially if the current proposal is higher than competitor offerings.
Review your organization's usage of the software and negotiate a reduced scope if usage levels dictate it. In cases where actual usage is less than contracted, pushing back on payment terms using evidence of underutilization can lead to favorable adjustments in pricing or service scopes.
Leverage your willingness to engage in reference calls or case studies as a negotiating tactic to secure pricing concessions. This can help enhance the perceived value of the contract for the vendor and foster goodwill, making them more likely to offer you better commercial terms.