Presenting competition as an alternative during negotiations can significantly enhance your position. By informing the vendor that other suppliers have offered lower pricing for similar functionalities, you can pressure them into providing better terms. It's crucial to present a compelling case that showcases the potential churn and the realistic possibility of switching services if they cannot close the pricing gap.

Emphasizing the need for economies of scale when expanding user counts can be a powerful negotiation tactic. Point out that your organization requires reduced rates as you increase the number of licenses or users in the system. This gives the impression that increased usage should naturally lead to lower per-user costs, which can lead to significant savings.

Removing auto-renewal clauses from your contract can provide substantial negotiation leverage. By requiring that the contract not automatically renew, you maintain flexibility for future negotiations. Emphasize that financial and legal teams have mandated this change to enhance decision-making around ongoing usage and budgeting.

Negotiating for economies of scale is important when your usage is increasing. If your organization plans to add more users or extend usage, insist on lower pricing per user to reflect this anticipated growth. Expressing these needs upfront can help establish terms that are beneficial for both current and future growth.