Are you ready to buy an IT asset management software package, but terrified of the negotiation process? If so, you’re not alone. Complex technical jargon, contract “legalese” that is difficult to decipher, and overly aggressive sales reps can all be quite intimidating – especially if you’ve never purchased an enterprise software solution before.
But, it doesn’t take years and years of experience haggling over technology prices to learn how to negotiate like a pro. With these five “secrets”, you too can get the best possible deal on your IT asset management software application.
Almost every IT asset management software vendor will offer some kind of basic price cut as part of each deal. The trick is to find out what that standard discount is. You can obtain this information during your customer reference checks, or from an industry analyst, if you’re working with one. Be sure to use this discounted price – not the list price quoted from the sales rep’s price book – as the starting point for your negotiations.
There are many, many IT asset management software providers to choose from – and your sales rep is well aware of this fact. In aggressive markets like these, companies will do almost anything – within reason – to secure your business. So, until your deal is finalized, keep evaluating the other IT asset management software solutions on the market. Your vendor will likely cut the price significantly to avoid losing your account to the competition.
Is your IT asset management software vendor hesitant to offer discounts and price cuts, but willing to throw in tons of free features and capabilities? If so, do not take the bait. Functionality that isn’t on your initial requirements list will have little or no value to your company in the long run. Chances are, you’ll never even use those free features. Additionally, this is likely a tactic the vendor is using to build up a larger customer base for an add-on product that is not performing well.
References are like gold to an IT asset management software company, and those clients who agree to give them are treated like royalty. If you agree, in advance, to give interviews to members of the press, or to speak to potential customers during sales cycles, you can score a sizeable price cut. Just remember that, in exchange for this discount, the vendor will probably work language into the contract that legally binds you to reference-related activities. So be sure to clear all commitments with your legal and public relations teams prior to signing.
In addition to scoring discounts on the IT asset management software itself, you can try to negotiate price cuts in other areas, such as implementation, maintenance, or other add-on services. Or, try to get your vendor to agree to free pre-implementation consulting, or post-rollout training.