Presenting competitors as an alternative can significantly enhance your negotiating power. Make it clear to the supplier that you are considering alternatives and outline competitors that may offer similar functionality at a lower price point. This tactic works best when you can demonstrate genuine interest in other options to pressure the incumbent supplier.
Emphasizing expected growth and the need for economies of scale in pricing can lead to significant savings, particularly if you anticipate an increase in the number of users or the scope of services. This tactic highlights the importance of rewarding growth through lower per-user costs.
Emphasizing the removal of auto-renewal clauses can help maintain flexibility and negotiating leverage in future discussions. This is particularly relevant if your finance team mandates that no automatic renewal terms be present in the contract, to ensure better control over future expenses.
Requesting a one-time discount can help in reducing the cost of the initial purchase or renewal. Although the supplier may position it as a one-time offer, expressing a greater interest in maintaining a positive and ongoing relationship can encourage them to extend this discount for future terms.
Addressing overage fees at the time of negotiation can lead to significant savings if you successfully argue that your growth merits flexibility around these costs. Reference the original agreement for leverage and highlight any instances of consistent usage to frame the conversation.