Address overage fees during the renewal or negotiation process. Highlight the original agreement and precedents set with other suppliers that may provide a more favorable fee structure. When discussing overages, always reference existing usage and indicate that growth should be rewarded, not penalized.
Emphasize the necessity of removing auto-renewal clauses in the contract. Explain that internal finance or legal requirements mandate an option to review and re-evaluate contracts annually, particularly when making new purchases or renewing existing agreements. Stress that this should not create barriers and can facilitate smoother negotiations.
Focus on scaling and growth to negotiate better per-user pricing. Define how the company's increasing demand necessitates economies of scale. Make it clear that the current pricing structure should reward the anticipated growth, thereby driving down costs for additional seats or features.
Insist on the removal of any proposed price uplifts during renewal processes, particularly if your company's usage has remained stable or decreased. Stress that the annual budget does not allow for unanticipated uplifts and that most partners reward contracted growth rather than penalize it.
Utilize competitive pricing from other vendors as leverage during negotiations. Present concrete bids that highlight differences, making it clear that cost is a deciding factor. Stress that this evaluation is driven by finance's constraint and is critical to proceeding with Forethought.