Try to negotiate the removal of any automatic renewal clause in the contract. Emphasize that your finance team requires the ability to reevaluate contracts and vendors before committing to another term, which is especially important for central procurement tools like Precoro. This tactic provides you with flexibility for future negotiations and helps to ensure that you are getting the best possible pricing and terms each year.
Leverage any security requirements to push for better pricing. Since Precoro is SOC 2 compliant, emphasize that any additional required features for compliance should not incur extra costs. Frame your argument that achieving compliance should be a mutual objective and that if these features are essential, they should be included in your current contract terms without an uplift in fees.
Negotiate to remove any proposed uplift in pricing upon renewal. Stress that your team has not seen a significant change in the scope of your use of Precoro, and the uplift is unwarranted, especially as you continue to expand usage and integrate workflows. Leverage the expected growth in user volume to advocate for flat pricing instead of increases.
When discussing pricing, emphasize that the current financial climate has required budget restraint and that the proposed pricing does not fit your budget. Request that any discounts offered be structured as a multi-term discount rather than a one-time benefit, ensuring that similar discounts will be considered in future renewals.
If you plan to scale the number of users or functionalities, leverage this growth potential to negotiate for lower per-user pricing. Highlight that rapidly increasing your user base should result in economies of scale that work in your favor for future pricing structures. This tactic should help to lower your overall expenditure by encouraging the vendor to offer bulk pricing.