7 Tips To Negotiating Software Pricing
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
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
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
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
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
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
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
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.