By showing that you are considering alternative providers or solutions that would meet your needs at a lower cost, you reinforce the urgency for Procore to provide a competitive offer. Presenting a competing quote can set a benchmark for the negotiation.
Emphasize your budget constraints and overall spending while negotiating with Procore. If your usage has not increased, pushing for cost reductions based on historical spending can initiate beneficial discussions.
Assert that your organization rarely signs multi-year contracts, especially with new vendors, and that this will require significantly more competitive pricing if Procore expects a multi-year commitment.
Discuss the surprise uplift based on the contract terms. Given your current economic situation, anchor the negotiation on retaining last year's spending and completely eliminating any proposed uplifts.
In discussions, emphasize that removing the auto-renewal clause is essential for transparency and gives your finance team peace of mind regarding future negotiations. This can strengthen your negotiating position.
If your team expects to grow, leverage this by negotiating a better unit price based on an anticipated increase in utilization. This gives you room to negotiate a more favorable outcome if you can promise Procore increased future business.