For almost all companies and industries impacted by the coronavirus pandemic, cost reduction is a top priority. For some, the cost trimming is a way to get through until the “new normal.” But for others, it’s an urgent survival tactic. Worker layoffs and furloughs aren’t the only way to quickly reduce costs — renegotiating contracts with vendors can provide almost immediate cost relief.
In this upcoming webinar, we’ll provide some timely ideas (and solicit more from attendees) on how to work with software companies to renegotiate contracts to reduce costs while still maintaining healthy relationships for the long term. To help get the conversation going, here are a few key points we’ll dive into during our complimentary online event:
- It’s NOT business as usual right now. Most of your vendors are in the same boat that you’re in right now — the current crisis impacts everyone. Your vendors are concerned about their revenues, but they also recognize your pain, so they should be working with you on finding ways to cut your short-term costs in return for the potential of long-term gain through the recovery and the years ahead.
- You have justification to ask for reduced costs. If you have fewer users on your software or other IT products due to furloughs or layoffs, that’s more than enough justification to ask your vendor for financial relief.
- Software-as-a-service extensions. If you’re on a subscription model for certain software, ask for a temporary reprieve (or permanent forgiveness) from monthly payments for a period. There are ways to get vendors to do this.
- Put off renewals. If you’re up for a contract renewal and the vendor won’t give any short-term financial relief, then ask the vendor to delay that renewal discussion. With so much volatility and lack of long-term clarity, it’s not a good time to commit to long-term contract terms (for either buyers or suppliers).
How vendors are helping clients (or not) and what they are saying in public (but doing in private) is worth knowing if you are on the hunt for cost savings to help your business through this challenging period. Now is the time to get cost savings and to find out which of your vendors are really interested in partnering with you for the long term to help you succeed and which ones just want your money and care little for your business or the pain you are going through.