Presenting competition as an alternative during negotiations often leads to better outcomes. Make sure to detail competitors’ offerings and highlight any differences in costs. State clearly that pricing pressure from your finance team requires a competitive evaluation, especially if similar functionalities are available at lower rates from competitors.

When discussing renewal, emphasize that your forecasting only considers your increased budget without expecting an uplift. Communicate this to achieve pricing that reflects your forecast and leverage any past agreements that may not have included such increases.

If you plan to add users or expand your usage significantly, use this as leverage to negotiate lower rates based on economies of scale. Position your growth during negotiations to stress that expanding your footprint should come with more favorable pricing.

Due to concerns over return on investment, stress the need for a shorter-term contract or a month-to-month arrangement. This allows you to assess value over time without committing long-term up front, which can pressure the vendor into accommodating lower rates.

Emphasize that an auto-renewal clause is not acceptable to your finance team and that you need the option to opt-out before renewing. This can help enhance your negotiating position by removing that automatic renewal pressure.

Propose to participate in a case study or serve as a reference in exchange for improved pricing or conditions. This can be a compelling way to show the vendor the mutual benefits of a strong partnership while negotiating better terms.