Presenting competition as an alternative can significantly boost your negotiating position. If you've received quotes from competitors that offer similar functionality, use those to strengthen your case. Let the supplier know the specifics of the competitor’s offer, including price and any value adds. Make it clear to them that your finance team is pushing back on costs, and you need to be at a specific price to proceed.
When expanding your usage significantly, leverage this growth as a basis for negotiating lower rates due to economies of scale. It's crucial to express a need for a pricing model that can accommodate this growth without increasing overall costs dramatically. Set the expectation that your budget needs to reflect this growth and be used as a key point in your discussions.
Removing auto-renewal from your contract is crucial for keeping leverage in future discussions. It allows you to reassess the supplier relationship at contract end, which can lead to better negotiation terms in the future. Emphasize that your finance team has made it a requirement to maintain flexibility during the renewal process.
If usage hasn't changed or is declining, leverage this position to negotiate costs downwards. Highlighting stable or decreased usage not only makes a solid argument but can potentially result in pricing agreements that reflect your current needs without penalty. Having a clear understanding of your utilization and comparing it against the existing costs is crucial to a successful negotiation.
Document any product issues or concerns you've encountered while using Emerge Tools. Create a narrative around these issues to request additional discounts as compensation. This tactic can be effective if the detailed issues have had a measurable impact on your business operations or your teams’ ability to deliver on projects efficiently.