Our software vendor wants a two-year renewal. The service is adequate, not wonderful, and moving to another system would require training and data migration. The renewal price has risen enough to make alternatives worth considering, but switching costs aren't imaginary. I'm preparing a list of must-have features, a migration estimate and concrete requests for the vendor. How would you negotiate from a position where staying is convenient but not guaranteed?
Handling a vendor contract renewal when the service is adequate but switching costs are high
- small-business
- handling
- vendor
- contract
71
6 replies
I’d negotiate from usage, not loyalty. If the vendor wants two years, ask what they’ll do for pricing, support, and exit terms in exchange f...
I’d negotiate from usage, not loyalty. If the vendor wants two years, ask what they’ll do for pricing, support, and exit terms in exchange for that commitment.
And don’t let them hand-wave the migration cost. Once you know what switching really takes, the renewal price has to compete with that, not with a fantasy of “someday we’ll move.”
That’s the whole game, honestly. If staying is easy, the vendor knows it. Your job is to make the comparison honest.