Introduce competition as a tactic to leverage better pricing during negotiations. By making the supplier aware of quotes from competitors, especially if they are significantly lower, you can create urgency and influence the supplier to improve their offer. Communicating that budget constraints necessitate exploring alternatives reinforces your position.
As you negotiate, ensure that the contract has provisions for future growth, such as price protections and removing auto-renewal clauses. This allows you to negotiate a better deal upfront while ensuring flexibility for scale without additional costs down the line. Emphasizing that growth should result in lower unit costs also aids in negotiations.
In the negotiation process, tackle one item at a time to avoid overwhelming discussions. Start off with the most critical elements that are vital for your budget, such as overall cost. This structured approach can help secure individual concessions that add significant value to your overall agreement.
Clearly define your requirements and budget constraints before entering negotiations with Hygraph. This ensures all discussions remain focused and that you can effectively communicate what is necessary to your organization. Use this clarity to reinforce your negotiation position throughout the process.
Prior to finalizing your deal with Hygraph, obtain competitive bids from at least two providers. This provides useful leverage and forms a strong justification for price reductions from Hygraph. Ensure to communicate the competitive nature of your review to pressure for a better offer.