To leverage competitive pricing during your negotiations, present alternative options that you are considering. This tactic has proven effective when participants emphasize the financial differences and the advantages other vendors may offer. Highlight that another competitor has quoted a significantly lower price for similar features, making it clear that financial considerations are paramount in your decision-making process.
Addressing overage fees during negotiations can lead to cost reductions. If your usage is being inaccurately charged or underutilized, request waivers of these fees as a part of your negotiations. Make sure to reference original agreements to reinforce your point. Highlight that your company’s growth and increased usage should be met with more favorable pricing rather than penalties.
If expected usage has decreased or if you're planning a significant descope in terms of services or users, emphasize these facts during your negotiations. Hold firm on your budget constraints and anchor your negotiations around the maximum amount you're willing to pay, which could be less than what the renewal proposes, especially if the rate increase seems unjustified given the scale back of services.
When facing an uplift in pricing, customers have been successful in arguing against it by citing underutilization or lack of communication from the vendor. Clarify that the uplift is not accounted for in your budget and that the norm among other vendors is to offer more favorable rates without such increases for expanding services, particularly when existing competitive costs are significantly lower.