This tactic involves leveraging alternative quotes from competitors to negotiate better pricing and terms with your current supplier. It's essential to present the competitor's offer realistically and emphasize your preference for the current supplier while highlighting the financial constraints driving the need to consider alternatives.
By removing auto-renewal clauses from the agreement, you gain leverage in negotiations for future pricing and terms. Emphasizing this requirement as directed by your finance team will help ensure favorable terms upon renewal.
Anchor your negotiation by requiring that any uplift on your current contract is removed. You should point out that your budget constraints do not allow for increases and that you expect to maintain current pricing while negotiating any expansion.
When increasing the number of users or licenses, emphasize that this growth should result in lower per-user costs. Articulating the requirement for economies of scale reinforces your position to negotiate for better pricing reflecting an increase in volume.
Propose to act as a reference for the vendor's services and participate in a case study. This can be positioned as a valuable marketing opportunity for the supplier but should also yield reciprocal benefits in terms of pricing concessions.