Introduce competition by mentioning other software providers that offer similar functionalities at a lower cost. Make it clear that your finance team requires you to look at alternatives, emphasizing the urgency for competitive pricing to proceed with the renewal or purchase. This tactic can help push the supplier to provide a better deal by highlighting the potential of switching.
Negotiate to have auto-renewal terms removed from the contract as a requirement from your finance or legal team. Emphasizing that future negotiations will be necessary for every renewal can strengthen your position and provide leverage in price negotiations.
Address the annual uplift and anchor your budget requirement below the proposed uplift percentage during the negotiation. Cite that such increases were not typically noted in previous agreements and that sustaining a flat renewal cost is crucial to maintain your ongoing business relationship.
Offer to participate in case studies or reference calls as a value-added benefit to the supplier. Indicate that you see value in forming a long-term partnership, and in return, request favorable pricing or better terms.
Before finalizing any contracts, ensure you review the current usage of the product. This analysis helps in negotiating a price that accurately reflects your actual need and usage, avoiding overpayment for unused features.