Presenting competition can help to create a sense of urgency with your supplier and leverage alternative offers to negotiate a better deal. Inform the supplier that you've received quotes from competitors that are lower than their offer, which can enable you to ask for price matching or additional value adds.

By discussing your budgetary constraints and emphasizing that you hadn't anticipated an uplift, you can negotiate to reduce or eliminate the increase. You should anchor your request around what you planned to spend based on historical costs.

If you're planning to increase the number of users significantly, this can be used as leverage for negotiating better pricing. Emphasize that with an increase in users, you expect to receive more favorable unit pricing.

Maintaining that you need to reduce your scope because you see a decrease in usage could leverage your negotiations to limit any proposed increases in costs. If users are being cut, argue for favorable terms that support scaling properly downwards.

When negotiating pricing, emphasize that your company typically requires annual contracts as a policy for new purchases. Introduce it early to establish expectations around pricing discussions.