You can save on software contracts if you have the ability to negotiate. Never stop negotiating. You can become a better negotiator as long as you have a seat at the table. This makes it critical to know when renewals are coming up and for account managers to be assigned to the process. Otherwise, renewals are likely to take place, without even attempting to negotiate a better deal.
Here is how you can become a better negotiator and save on your software solutions –
#1 Eliminate your auto renewal
One of the worse things businesses do is to put everything on an auto renewal. They easily slip through the cracks without a review, leading to unnecessary charges and preventing the ability for someone within the organization to negotiate a better deal.
#2 Change to a monthly billing cycle
When possible, move billing to a monthly basis. This provides greater flexibility for making changes to the contract. For example, upon discovering that only half of the potential users need a software solution, it could be possible to move to a lower package and save immediately.
#3 Take advantage of end of month or quarterly promotions.
Renewing at the end of the month or quarter will often create an opportunity to take advantage of company discounts. Sales people trying to make quota may offer incentives for you to renew.
#4 Give yourself time to read the fine print.
Hidden costs are often present in software contracts. Reading the fine print and identifying things like excess use charges or charges for forced support can help you to identify the costs that are likely to drive up your monthly or annual expenses.
#5 Educate your team.
Assign account managers to each software solution you are currently using and educate them as to negotiation best practices. They need to know when to review the contract and how much time before the renewal to conduct internal satisfaction surveys. This will empower them to negotiate contracts before they are set to renew and perhaps, look for an alternative solution if employee satisfaction is low.
#6 Keep track of what happened in the past.
Employee turnover is a fact of life but when an employee leaves, so does the knowledge of past discounts, deals and offers. Maintaining accurate records is critical so that anyone can step into the account manager role and know exactly where the company stands so you can save on software contracts. An informed negotiator is a better negotiator.
Try SubCentral and Save on Software Contracts
Improve software contract negotiations company-wide using SubCentral’s robust software management tools. By keeping a centralized system of record for all cloud software applications, it becomes possible to know where each contract stands at all times and work towards getting the best deals possible.