Introduce competition effectively during negotiations to drive down pricing or secure better terms. Mention that you are evaluating other options and that a competitor is offering a lower rate with similar functionalities. This can create urgency for the supplier to improve their offer.
Leverage cost reductions by referencing existing usage levels that have not increased to push for lower rates. This is particularly beneficial in contract discussions where budgets are tight or where usage has been consistent but pricing has not remained aligned with market rates.
Position your negotiation in light of alternative SAS providers by sharing their pricing or features as a benchmark for your current negotiations. This tactic effectively showcases the competitive landscape and justifies your requests for discounts or additional services.
If additional users will be added during the renewal, emphasize this to negotiate better per-user pricing based on the volume increase. Stress that your organization will require economies of scale moving forward.
Make it a requirement that auto-renewal clauses be removed from the contract due to internal financial compliance rules. This can free up negotiation flexibility and ensure you have the opportunity to revisit pricing and terms in the future.
Request the removal or waiver of any potential overage fees during your negotiations. Since you intend to stay within budget or current usage levels, emphasizing this may help you eliminate potential costs or penalties.