Presenting competition as an alternative during negotiations can help leverage better pricing or terms. Highlight how other providers are offering similar services at a lower price or with additional value adds. Emphasize that your decision to go with one vendor over another is heavily influenced by cost, prompting the supplier to reassess their pricing to keep your business.
Address the potential price increase during negotiations and anchor your budget expectations below the proposed uplift percentage. Make it clear that standard increases for your other partners are typically lower and that you expect better terms based on your volume and history with the supplier. This can lead to significant savings on the renewal.
If there is a significant rate increase in your renewal negotiations, present a case for reducing the scope of service, or mention any descope in users or usage that should lead to a more favorable renewal price. Communicate any budget constraints imposed by your finance team, ensuring the supplier understands that maintaining costs is crucial for moving forward.
Negotiate to remove any auto-renewal clauses in your contract, as this provides you flexibility and maintains your negotiation power. Mention that this is a new requirement from your finance team in order to proceed, ensuring that it won't hinder the deal.
Offering to participate in marketing activities, such as being a reference or contributing to case studies, can be seen as a valuable 'give.' This can help in negotiations for price reductions or improved terms, especially if the supplier sees value in the exposure or insights from your collaboration.