Presenting competitors as viable alternatives is a powerful tactic. It establishes leverage since potential alternatives make your current vendor more aware of their need to offer competitive pricing. Utilize this strategy by explicitly naming the competitor, their offerings, and the cost advantage they present.
Emphasizing the importance of avoiding automatic renewals can simplify future negotiations and maintain your leverage. By communicating that your finance team requires explicit notice and approval for renewals, you create an opportunity to negotiate more favorable terms annually.
If your usage is expected to grow significantly, leveraging this forecast to negotiate lower rates per user can yield favorable pricing. Stressing that as your user base expands, pricing should reflect economies of scale can compel the vendor to provide discounts.
When faced with proposed uplift percentages, anchor your negotiations based on your budget constraints. If possible, request that the uplift for your renewal be eliminated under the current circumstances, especially if you're committed to growing your usage.
If unsure about proceeding with Sanity, request either a month-to-month or shorter-term contract to evaluate the ROI before committing. This approach can help you secure a more favorable renewal down the line without a long-term commitment.