Customers who present competition as an alternative have seen the best outcomes in negotiations. Clearly articulate that you are considering competing offers, emphasizing their pricing or additional features. This approach helps to highlight the urgency for the vendor to match or improve upon their offerings to retain your business.

Emphasize that multi-year contracts are rarely signed and that your finance team requires significant discounts for such commitments. Present multi-year options as a potential but only if pricing decreases substantially, reinforcing that cost is a primary factor.

Engage the supplier regarding overage fees, which might be negotiable or even waived entirely. Reference your usage as a ground for discussion. If usage has increased, let the supplier know that this growth should translate into a better pricing model moving forward.

Negotiate pricing based on the expected growth in users or usage, aiming to ensure that unit costs decline as your usage rises. This is especially relevant for companies predicting significant increases in demand for the software. Propose future pricing scenarios that reflect these changes.

Position the removal of auto-renewal as a condition for proceeding with the contract. This requirement ensures you have the opportunity to reassess your needs and costs each year without being locked into another term, which can sway the vendor to offer better pricing.