A large health insurance company was renewing support on existing software and upgrading that software for Office365 compatibility. Seems simple enough. However, the initial quote from the vendor for the upgrade was over $150,000. While this may seem like a drop in the bucket compared to some bigger software contracts, the client knew they could still achieve significant savings.
The Objective
Upgrade the software for Office365 compatibility for a reasonable price.
The Approach
Based on intel from negotiating similar upgrades, Seprio knew the initial proposal from the vendor was outrageous. The vendor simply expected the client to pay the $150,000 rather than spend time in negotiations. However, the team stood firm and let the vendor know the price was unacceptable and that the client would not upgrade for that price or any other unreasonable price.
The Result
The client ended up paying $20,000 for the upgrade, originally priced at $150,000! When combined with the implementation fee the total cost to the client was $44,000. Additionally, this let the vendor know they can’t nickel and dime the client on future agreements. Moral of the story: A relatively small price tag still has some room for negotiating significant savings.
Reach out to us.
Don’t worry. You won’t be talking to an amateur salesperson who tries to pressure you into saying yes. If you get in touch with us, your team and our team will get together and evaluate your company’s unique situation, then discuss possibilities. It’s our pleasure to help you, and we hope to talk to you soon.
Seprio is a sourcing and vendor management consultancy; helping companies achieve the best savings and performance by buying products or services the right way from the right people.