Presenting competition as an alternative can leverage better pricing or terms. Highlight that you have received lower quotes from competing services that provide similar functionalities, and communicate that budget constraints are forcing you to seriously consider these alternatives. This tactic emphasizes multi-vendor evaluation, showcasing market alternatives to drive your desired price point.
Push for the removal of any proposed uplift during negotiations, particularly if your usage requirements have not changed. Stress that you were not expecting a price increase, especially given the industry trend of stability or declining costs amidst increased usage. Being clear about your budget constraints enhances your leverage to negotiate better terms.
Engage in a conversation about overages and see if they can be waived, especially if you can tie this request to a guaranteed increase in usage. Reference the terms in your original agreement regarding usage levels or overage fees and highlight that your leadership expects predictable financial management.
Highlight the necessity to remove auto-renewal conditions from the agreement as a requirement from your finance team. This is often a non-negotiable point that gives you leverage in negotiations and provides flexibility for future evaluations of service value and market competition.
If planning to expand user seats or services, emphasize the importance of granted economies of scale. Reinforce that your usage growth justifies more favorable pricing per unit. This strategy aligns with your organization’s growth trajectory and can help reach a more balanced pricing model.