Presenting competition as an alternative is a strong tactic, and it can help you negotiate better pricing or terms. Ensure to show that you have received quotes from competitors offering similar functionalities at a lower price. This tactic works best if you highlight that your finance team needs to evaluate all options for budget constraints.
Eliminating the auto-renewal clause can provide you with leverage for future negotiations. Emphasize that your finance team requires a clear review before contract renewal, which is critical for maintaining control over budget and contractual obligations.
If the current contract proposes a significant uplift without clear justification, emphasize the requirement for economies of scale as user numbers grow. Request a better rate due to the increased volume and make it clear to the vendor that you expect a pricing model that reflects this growth.
Negotiate to have any proposed uplifts removed by explaining that your finance team had not budgeted for an increase and that other suppliers in the marketplace are providing better pricing structures without uplifts. This can press the vendor to reconsider any increase.
Offer to assist the vendor by acting as a reference or participating in a case study if they can provide you with more favorable pricing and terms. This can help solidify a mutually beneficial partnership while easing the cost demands.