All About Negotiations - Net New & Renewals

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Welcome back to SAS Spend Optimization 101. I'm Jimmy Hawesworth VP of Procure

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ment Strategy

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at Spendflow. Today, we're diving into a critical topic for finance and

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procurement

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professionals how to negotiate SAS contracts both net new and renewals. Negoti

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ating SAS

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contracts can be a game changer for your organization's bottom line. Whether

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you're dealing with

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net new contracts or renewals, the principles remain largely the same. First,

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let's talk

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about net new contracts. These are agreements with SAS providers for brand new

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services.

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Here's how you negotiate them. Research and preparation is where we start. You

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'll start

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by thoroughly researching the market and understanding your organization's

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needs. Knowledge is

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your best ally in negotiations. Second, make sure you set clear objectives. Def

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ine your

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goals and what you expect from the new SAS service. This clarity will guide

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your negotiations.

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Third, competitive bidding. If possible, invite multiple vendors to bid for

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your business.

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Competition can drive better deals. Next, have flexible terms. Negotiate for

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flexibility

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in contract terms, including pricing, service levels, and exit clauses. Now let

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's shift

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gears to renewals. Renewing existing contracts can also be an opportunity to

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optimize your

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cost. First, review an audit. Before renewing, conduct the thorough review of

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your current

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usage and needs. Are you overpaying for unused features? Second, benchmarking.

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Compare your

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existing contract rates with current market rates. This data can be a powerful

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negotiation

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tool. Third, leverage usage data. If you've been a good customer, use your

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usage data

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as leverage. Vendors often want to keep satisfied customers. Fourth, starter

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there. Don't wait

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until the last minute to negotiate renewals. Start the process well in advance

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to have

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ample time for discussions. Remember, successful negotiation is about finding a

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win-win situation.

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Both you and the vendor should benefit from the deal. Negotiating SaaS

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contracts, whether

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they're net new or renewals, is a strategic process. It's about getting the

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best value

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for your organization while maintaining a healthy vendor relationship. Join us

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next

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time as we continue our journey into the world of SaaS Fin Optimization.

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Subscribe for

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more insights and tips.

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