Presenting competition as a viable alternative can significantly improve negotiation outcomes. Highlight the quotes or offers you've received from other vendors that are lower, and emphasize your finance team's constraints that require you to consider these options seriously. This tactic is effective because it creates urgency and shows the supplier that you're ready to explore other alternatives if necessary.
If you're considering a longer commitment, stress that multi-year contracts are rarely signed without significant discounts. Emphasize your organization's cautious approach to long-term commitments with new vendors and imply that financial pressures give you a need to negotiate better pricing terms in exchange for commitment.
Ensuring that your team's actual usage aligns with what's being contracted can provide leverage. Request data from the supplier about usage trends to confirm whether you're aligned with your current agreement. If there’s significant underutilization, use that information to negotiate a lower price or scale back on the contract scope.
Requesting the removal of auto-renewal clauses can provide you with more control over future negotiations. Make sure the supplier understands that your finance team's requirements now compel you to move away from auto-renewal agreements, maintaining flexibility for future adjustments.
Addressing any proposal for price uplift is crucial, as this could significantly impact your budgeting for the upcoming term. Firmly argue for no uplift based on your organization's previous agreement and emphasize that most suppliers offer competitive pricing for existing customers as they grow their usage.