This tactic focuses on leveraging competitive offerings to negotiate better terms and pricing. By presenting competitors' proposals to the supplier, you can create a strong case for why you need a better deal. Highlight the specific cost advantages or additional features offered by competitors to reinforce your position.
When negotiating for a SaaS product that you plan to scale, emphasize the growth projections to request a lower per-user rate. Highlighting the increase in users can leverage economies of scale, compelling the supplier to offer you better terms in anticipation of future business.
In situations where your usage of the software is expected to grow, leverage this anticipated growth during negotiations to secure lower rates. By emphasizing that increased volume should come with cost efficiencies, you build a case for reduced pricing per unit.
Negotiate to remove auto-renewal clauses in the contract to maintain flexibility in future negotiations. Removing auto-renewal gives you greater control and ensures that you can reassess options and pricing before renewals occur.
Challenge any proposed uplift in pricing by presenting your expected budget constraints. By anchoring your negotiation at a lower percentage increase or requesting the removal of uplifts entirely, you can help maintain control over spending and present clear financial expectations.