Presenting competition as an alternative often drives successful negotiation outcomes. Highlight any competitors providing similar services or capabilities at lower price points. This creates urgency to match or beat those offers, ensuring you get the best deal. Use data from competitive quotes to anchor your negotiation.
Challenge any proposed price increase (uplift) during the contract renewal. Emphasize that the budget forecast did not account for such increases and that you expect pricing to remain stable despite potential growth in usage. Present evidence of past agreements that had no uplifts to strengthen your case.
Negotiate to carry over any one-time discounts into future terms. If the current contract has any one-time discounts emphasized by the supplier, clarify with finance that the budget is set on the flat renewal price without these discounts. This could secure substantial savings in subsequent periods.
Request removal of auto-renewal clauses, empowering your organization with the choice to reassess the software's value each renewal period. Make it clear that this is a finance requirement to minimize risk and ensure you're not locked into unfavorable terms or conditions.
Propose to act as a case study or reference for the supplier in exchange for better pricing or contract terms. This gives you leverage to create mutual benefits, where both your organization and the supplier gain from the relationship. Ensure this is explicitly stated in the agreement.