Introduce competition as an alternative during the negotiation to strengthen your bargaining position. By sharing that another vendor offers similar features at a lower price, you can exert pressure on Planful to lower their costs or enhance their offerings. This tactic is effective in highlighting the business's intent to evaluate multiple options and is more impactful if you can present a specific competitor's quote.
Leverage the planned addition of users as a negotiation tactic, emphasizing the need for economies of scale. By showcasing growth and the corresponding user base increase, you can negotiate lower per-user rates and drive the conversation towards incentivizing bulk pricing. Highlight that existing terms should reward ongoing commitment and market changes.
Negotiate to remove any proposed pricing uplift that Planful may suggest. Assert that your financial planning does not account for such increases, particularly when it goes against the company’s historical costs and current budget constraints. Firmly stating that you expected flat pricing will position you to negotiate more effectively for a stable cost structure.
Address any overage fees with the expectation of waiving them in the current or next renewal cycle. This approach can save money by encouraging better budget predictions and adherence to plans, thus fostering more manageable operational costs. It’s key to communicate that overages should be minimized, especially as user levels might fluctuate.
Emphasize the need to remove any auto-renewal clauses from the contract to maintain negotiation flexibility for future terms. Express that your management and finance team requires control over contract renewals, which will keep the company on track with evolving needs and budgeting practices.