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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

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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

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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

The image features icons of an email with a prohibition sign and a ringing telephone, suggesting a preference for communication by phone over email.

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

The image shows an icon of a clock, calendar, and rightward arrow, symbolizing planning or scheduling. It is outlined in green on a white background.

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

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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

The image depicts a green outline of hands forming a heart shape and an orange smiley face, both against a white background.

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

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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.