Presenting lower quotes from competitors during negotiations often leads to better outcomes. It's effective to emphasize that you are assessing alternatives along with their pricing, especially when teams are tied to budget constraints. Make it clear that a more favorable offer from a competitor could influence your decision.
Highlighting the significant growth in users can create leverage during negotiations. Emphasize your company's need for economies of scale; as you add more users or expand usage, you should receive lower rates. If you expect to expand your use of the tool, this could convince Fathom to offer discounts.
Removing auto-renewal terms can provide critical flexibility for future negotiations and ensure you are not locked into unfavorable terms. When bargaining, express your finance department's requirement to avoid auto-renew clauses and anchor on this for a more favorable agreement.
Overage fees, often a point of contention, can be waived or negotiated during renewal discussions. It's beneficial to reference your contract's original terms to argue removing or significantly reducing any overage fees. With Fathom's offering, making the case for waived overages is particularly effective, especially in light of your expected usage growth.
Introduce competitive pricing into your negotiations as leverage. Point out that writing to Fathom and stating competitors with better pricing reflects your due diligence and may enable a better financial arrangement with Fathom.