By introducing competition, you can leverage other offers to negotiate better pricing or terms. It's crucial to communicate that you're considering different vendors, and provide specific cost comparisons. This tactic shows your seriousness in the negotiations and encourages the supplier to offer a more competitive rate to retain your business.
If the renewal includes an uplift that was not previously communicated, leverage your existing agreement to negotiate its removal. Make it clear that your company's budget constraints do not allow for added costs and emphasize the importance of keeping the pricing flat during this renewal period.
Emphasize the necessity of removing auto-renewal clauses as a new requirement from your finance team. Stressing this will give you more negotiation leverage moving forward, allowing for discussion around pricing or terms at the time of renewal without facing automatic chargebacks.
Offer to act as a case study or provide references which can help the vendor's marketing efforts. In return, seek discounts or more favorable pricing. This adds value for the supplier and can soften their stance on pricing if they believe it will lead to greater exposure.
Conduct a thorough review of your current usage to identify underutilized services. Use this data to negotiate for a reduced scope or better pricing aligned with actual consumption, highlighting any potential savings the supplier can achieve by adjusting your contract.