Presenting competition as an alternative can drive significant outcomes in negotiations. You should make the supplier aware that you are considering other options and share specific quotes or offerings from competitors. Establish clear requirements that your finance team has set regarding budget constraints. This tactic encourages the supplier to either match or better the competitive offer.
When negotiating for a renewal, anchor your discussions around a budget that does not account for any uplift in spend. Focus on the original terms of agreement and assert that the uplift is unwarranted given the circumstances of flat or reduced usage, which should lead to a favorable renewal price.
Emphasizing the need to remove auto-renewal clauses can provide negotiation flexibility. Highlight that this is a new requirement from your finance or legal teams. Taking away the automatic renewal can give you more time to negotiate during future periods.
Offering to serve as a reference or participate in a case study can add value to your negotiation. This assistance should be contingent on agreeable pricing and terms, highlighting that you can be an advocate for the supplier if pricing reflects the partnership's mutual benefit.