Introduce competitors who can offer similar functionalities at lower prices. Ensure to communicate that finance is tightly controlling the budget and presenting alternatives as a requirement for negotiation. This can significantly strengthen your hand by showing a genuine alternative exists.
Emphasize the need to remove any auto-renewal clauses to maintain negotiation leverage for future discussions. This prevents the vendor from assuming a guaranteed revenue stream and keeps options open should costs escalate.
Challenge any proposed uplift in pricing by referencing growth or stable usage. Emphasize that a cost increase is not justifiable based on the current usage and expectations.
Leverage the competitor landscape showcasing that other suppliers may offer similar security features without extra costs. This can push for a waiver or reduction in premium features if requested.
Communicate the necessity for either month-to-month or shorter contract terms due to internal budget evaluations. A focus on limited commitment also incentivizes the vendor to offer better short-term pricing.
Ensure that the usage aligns with the features provided. If underutilization exists, negotiate reductions in fixed price structures based on a more accurate usage forecast.