Introduce competition as a negotiating lever by informing your vendor about quotes you've received from alternative suppliers that offer similar services at lower costs. This tactic can create negotiating pressure on the current vendor to provide competitive pricing or enhanced terms in order to retain your business. Ensure to mention that other competitors have offered lower pricing while still meeting your functional needs.
If your company plans to scale or add users significantly, leverage this growth potential as a bargaining chip to negotiate lower pricing per user. Emphasize your growth plans during discussions to get a favorable rate, which typically aligns with supplier interest in establishing long-term partnerships.
Ensure that your contract not only meets current needs but also has provisions for scalability and pricing stability as you grow. This includes negotiating for future pricing tables or locking in your rate despite expansion during the contract term. Setting expectations here can prevent unwanted uplifts in future renewals.
Address any concerns regarding potential overages upfront in your negotiations. If your usage is predicted to grow, use that as leverage to request waivers for overage fees or limit your liability for such fees in the contract. Getting this concession can significantly reduce potential costs as your usage increases.
Request the removal of automatic renewal clauses in the contract. This allows you the flexibility to review terms annually and negotiate pricing based on performance over the term rather than being locked into potentially unfavorable terms without review. Highlight this as a requirement due to your finance team's policies.