Presenting competition as an alternative has proven to be one of the most effective negotiation tactics. By informing Yardi that other suppliers offer better pricing, you create a sense of urgency and need for them to reconsider their proposal. Specifically, mention how much a competitor has quoted for similar functionalities. Make them aware that your finance team has strict cost considerations that compel you to look elsewhere unless adjustments are made.
Eliminating auto-renewal clauses will give you greater flexibility in negotiating better terms in future contracts. Stress that it’s a new requirement from your finance team and ensure that you articulate how auto-renewals can hinder your ability to adjust service levels or pricing, particularly given price sensitivity.
When renewing with Yardi, it's essential to negotiate for the removal of any planned uplift, particularly in light of your budget constraints. Highlight the fact that unexpected increases are against your company's financial recommendations. The argument should stress that other similar partners typically do not impose uplifts under such circumstances, thereby reinforcing your position for a flat renewal rate.
Prior to negotiations, thoroughly review your current utilization of Yardi's service offerings. If usage has decreased, ensure that you leverage this to request a reduction in pricing or scope adjustments during renewal discussions to prevent overpaying for unused services.
Offering to serve as a reference or to participate in a case study can provide value to Yardi. You can use this engagement as leverage for better pricing on the renewal by positioning it as a major give that should be reciprocated with reduced costs.