Presenting competition as a legitimate alternative can enhance your negotiating power. By demonstrating that other software providers can offer a similar service for a lower cost or under better terms, you can compel Fellow to consider adjustments. Make sure to mention the specific competitor's pricing and how its offerings compare to Fellow.
Emphasize the desire for shorter contract terms or month-to-month provisions. Since you're assessing Fellow for the first time, such parameters would give your team the flexibility to pivot if the solution does not deliver the expected value. Make it clear that, without the flexibility of a shorter commitment, the potential renewal of the product could be jeopardized.
If Fellow proposes a standard uplift in pricing, stress that your budget doesn't permit such increases and that you expect pricing to remain stable, especially when the usage stays consistent or if growth allows price reductions. Highlight this request early in the negotiation process to anchor discussions.
Advocate against auto-renewal clauses in any agreement due to the need for financial and legal review processes. This assertion ensures that your organization retains control over renewal outcomes and maintains the ability to reassess pricing and terms annually.
Leverage your willingness to act as a reference or participate in a case study to negotiate a better price. By proposing to validate Fellow positively in exchange for a discount, you not only add value to their marketing efforts but potentially secure lower pricing.