Presenting competition as an alternative can give you leverage in negotiations. Make it clear that you are looking at alternative suppliers and communicate specific quotes from competitors to strengthen your position. Stress that your financial team is keen on cost-effectiveness, and if your existing provider can't meet your financial requirements, you may consider switching services.
If you're considering moving from an annual to a month-to-month arrangement, emphasize these needs to the vendor. You can suggest that your finance team requires a month-to-month connection due to concerns about the return on investment (ROI). This gives leverage to negotiate better prices or terms for smaller commitments without the long-term risk.
If you face a budget uplift based on current usage, anchor your negotiation at a below-budget expectation. Request that the uplift for the renewal be removed as this was not part of the previous agreement. Stress the importance of pricing alignment with your budget and industry standards to negotiate lower rates.
If you anticipate adding users or increasing usage, leverage this potential growth to negotiate lower rates per user. Emphasize that you expect the vendor to reward your company's growth with cost-effective pricing as your usage scales, ensuring better alignment to unit pricing accordingly.
Negotiate to remove auto-renewal clause by positioning it as a requirement from your finance/legal team. Emphasize that auto-renewal terms can create uncertainty, and your organization needs the freedom to decide whether to renew based on performance and satisfaction with the service.