Introduce competition by highlighting quotes from other providers offering similar functionalities at a lower price. This tactic effectively demonstrates that you have options, thereby increasing the likelihood of negotiating a better deal. Make sure to perfect the wording to indicate potential churn with the current supplier if your pricing expectations are not met.
When discussing the renewal, push back against any proposed price increase (uplift) by emphasizing that your intended budget only accounts for flat or reduced spending. Many suppliers are amenable to removing uplift clauses, particularly if it's shown that the uplift wasn't explicitly mentioned in the previous agreement. Frame your ask around annual increases rather than unforeseen charges.
Emphasize overage fees during the negotiation discussions. By assessing your current usage against what is contracted and showing willingness to renew, you can often negotiate these fees to be completely waived or significantly reduced. Be prepared with data on your usage and any potential underutilization.
If your supplier insists on locking you into auto-renewing contracts, consider asking to have that clause removed. Articulate that this is a new requirement stemming from your finance team's desire to maintain flexibility in vendor relationships. Indicating that the auto-renew would be a deal-breaker can lead to negotiations for better terms.
If you're considering a significant growth in user licenses, leverage this in your talks. Stress that with increased usage, you expect substantial price reductions due to economies of scale. This is vital, especially when discussing the subscription specifics and reinforcing your prospective long-term partnership.