Are negotiations stressful? Do you have a limited budget and are trying to meet everyone’s software needs? If the estimate is overestimated, the company has paid too much up front, but if the consumption is underestimated, the company could face unexpected costs in the future.
Negotiating with Vendors is an important aspect of managing expensive CAD/CAE/+ tools. Make sure you have the advantage of having the data to negotiate on software purchase and renewals. Every Vendor is different in terms of:
- Negotiating tactics
So, of course, the side that gets the best “deal” is the one that is better prepared. If you have important information, you will be able to have more negotiation power.
Vendors often use a variety of historical discounts, vendor behaviors, ‘giveaways’ plus techniques for negotiating future discounts, feature remix deals, multi-year ramp up deals, etc. TeamEDA are specialists in renewal planning and can help to ensure that you understand the patterns in this type of behavior.
What About Renewals?
It is more than just waiting for the Vendor to send you a renewal Quote. You really need to prepare 30- 60 days in advance of renewal. You need to review:
- Pricing (past and proposed)
- Decide what your strategy will be and
- What your needs are going forward.
- How this Vendor behaves
- How they discount
- Licensing types available
- Key players
- Approach to the renewal.
You will need at least 2 months to assess your needs based on past usage, upcoming needs and trends to get the best “deal” for your Company.
TeamEDA’s LAMUM (License Asset Management and Usage Monitoring) is the only industry toolset to combine asset management (tracking vendors, contacts, contractual documents, PO’s, etc.) with a proprietary algorithm to ensure a 3 point check on actual license usage providing a holistic view of license assets. This information can then be used to inform decisions for purchases and renewals, often saving our customers over 20% annually.
LAMUM allows you to track renewal dates and set up Renewal Alerts 60 days in advance. LAMUM allows you to keep a copy of all Agreements and documents related to this Vendor, past purchases, all in one place, that can be shared. LAMUM is a full featured Renewal Management system.