Emphasize the necessity of removing the auto-renewal clause to maintain negotiation leverage. This tactic allows you to avoid being automatically bound to terms that may not be favorable. By indicating that your finance/legal team has made it a requirement to not proceed with auto-renewals, you can create flexibility in your negotiations.
When discussing the renewal, highlight your expectation for stable pricing, especially if you are reducing the scope of usage. Customers noted success in negotiating for the removal of any uplift language by anchoring on their allocated budget for the upcoming year. By bringing attention to previous arrangements of flat renewals in light of reduced usage, you can advocate for more favorable terms.
Negotiate for future-proofing clauses in your contract such as economies of scale and price protection to ensure that any increase in your usage would be countered by lower unit costs. This is particularly important when scaling up usage in the future, as it secures better rates as your needs grow.
Introduce potential competitor offerings during negotiations. Highlight that you are considering alternatives and that pricing will be an essential factor. This approach can apply pressure on AppCheck to remain competitive to retain your business. Provide real competitor quotes if possible to validate your position.
Offer to participate as a reference or contribute to a case study in exchange for a lower price. This tactic can strengthen your position by showcasing the value you bring to the table, as long as you are able to secure pricing terms that are mutually beneficial.