Engage the supplier by presenting competitive quotes from alternatives. Highlight pricing differences and any additional value-added features from competitors to exert pressure on the current supplier. This tactic solidifies your position and highlights the financial implications of losing your business.
Communicate that your company is wary of multiyear commitments due to past experiences. Leverage your unwillingness to engage in long-term contracts to negotiate better pricing or terms. Make it clear that your finance team is pressing to consider lower-cost alternatives due to apprehensions around commitment length.
When faced with price increases, anchor on your budget constraints that did not include such uplift provisions. Emphasize that all partners you work with typically do not impose such uplifts, and use your budget as leverage to negotiate against the proposed increases.
Emphasize your finance team's new requirement to eliminate any auto-renewal clauses in the contract. This move will not only enhance your negotiating power for the current deal but also provide flexibility for future negotiations, ensuring you have control over when and how to renew.
Inquire about any overage fees that may apply to your usage. This can lead to negotiations to have these fees waived, especially if you can justify your usage patterns or if your actual usage is lower than anticipated.