Introduce competition from other suppliers to your negotiations. Highlight any quotes from competitors that are lower than your current proposal and emphasize that, while you prefer SquareWorks' services, you are bound by your finance team's budget constraints. This tactic can pressure the supplier to offer more competitive pricing.
Negotiate to have any auto-renewal clause removed from your agreement. This gives you more negotiation power for future terms and prevents being locked into an unfavorable agreement without prior notice. It's essential to communicate to SquareWorks that your finance team has mandated this change to proceed with the deal.
Address the concern about potential uplifts in pricing during your negotiations. Clearly outline your budget constraints and assert that you were not expecting an uplift based on past agreements. This technique allows you to request a flat renewal rate without increases.
Utilize your budget constraints to negotiate for lower pricing based on competitive offers. Show your firm interest in SquareWorks' solution but communicate that financial pressure requires you to push for more favorable pricing to ensure internal approval.
If planning on expanding user access, negotiate for lower pricing based on economies of scale. Emphasize that your organization is in a growth phase and that a rate reduction for additional users is standard practice among suppliers.