If you are facing a pricing model change that impacts your costs significantly, it's critical to leverage existing contracts. Emphasize the necessity to honor the previous pricing model or anchor on flat pricing year-over-year to set expectations moving forward. Make it clear that upcoming budget cycles can only accommodate previous costs, pressuring them to align their offers accordingly.
Removing auto-renewal clauses can significantly impact your negotiation leverage since it gives you the freedom to assess alternative providers. Communicate that your finance and legal teams now require all agreements to exclude auto-renewals to facilitate flexible negotiations in future renewals.
Presenting competing offers as alternatives effectively strengthens your position in negotiations. Make clear that your finance team has identified other options as viable paths forward if Encora cannot meet your needs to ensure you get the most competitive pricing. This tactic creates urgency and can lead to significant price concessions.
If you foresee exceeding your current usage limits, address any overage fees in your renewal discussions. Assert that future growth should not incur penalties, especially if you expect to maintain or expand usage. Offer to renew early or commit to longer terms in exchange for waiving overage charges.
Competing providers frequently offer compelling pricing. Use this knowledge to anchor your negotiations by presenting their offers and stressing your organizational need to meet budgetary constraints. This will apply direct pressure on Encora to provide competitive rates.