January 13, 2023

By Intrigue

Negotiating pricing with software companies can be a daunting task, especially if you’re not sure where to start. However, by following a few simple tips and techniques, you can get a better deal and save your company money.

Here are 7 tips to negotiate software pricing that will help you save your company some hard-earned cash:

#1: Find out the provider’s end-of-quarter and end-of-year dates are

Animation of question marks and a 356 calendar

Many companies have quotas they need to meet, and they may be more willing to offer discounts in order to close a deal. This is especially true if you’re negotiating close to the end of the quarter or year.

#2: Use extreme anchoring

Graphic of two people shaking hands and two hands with a dollar sign between them

Extreme anchoring means that you tell the software company that you would really love to work with them, but can only afford a certain percentage of the sticker price. For example, you might say that you can only afford 25% of the price they’ve quoted you. This creates a starting point for the negotiation and gives you some leverage.

#3: Skip email and pick up the phone

Graphic of an email symbol crossed out and a phone symbol beside it

It’s a good idea to negotiate on the phone or via video, rather than over email. This allows for a more personal and interactive conversation, and can help to build trust and rapport with the software company.

#4: Use long-term commitments

Graphic of a clock and a calendar beside an arrow, depicting that time is passing

Using long-term commitments can also be a powerful negotiating tool. By committing to a solution for three years or more, you can often get a better price. This level of commitment demonstrates to the software company that you’re serious about working with them, and that you’re willing to make a long-term investment in the relationship.

#5: Never agree to the first price they give you

Graphic of 3 price tags beside eachother

It’s important to never agree to the price they give you, even after you say you can only afford 25%. This is a common negotiating tactic and it’s important to stand your ground and negotiate for a better deal.

#6: Always be appreciative and kind

Graphic of two hands making a heart formation beside a smiley face

It’s always important to be nice and appreciative while negotiating. Saying thank you, being nice, and positioning the negotiation as a team effort can go a long way towards building a positive relationship with the software company. Remember, honey is more effective than vinegar – be sweet and you may just get a better deal.

#7: Remember, time is always on your side

A graphic that says "Take Your Time"

Time is always on your side when negotiating, so, if there’s no rush to make a decision, take your time and get the best deal possible. 

By following these tips and techniques, you can effectively negotiate pricing with software companies and save your company money. 

Intrigue is a Canadian digital marketing company delivering solutions to help businesses get noticed and found. Guided by a commitment to empower leaders to strengthen communities, Intrigue offers website design and development, branding, online advertising, content marketing, graphic design, video production, SEO, and analytics. Take your marketing to the next level and Get Noticed. Get Found.® intrigueme.ca

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