How do you negotiate and overcome contract terms and conditions that favor your competitors?

Make it quick and ask "So, if we don't include those same terms, are we done?" If the answer is yes, walk away, you're buying a problem, high overhead with a poor fit customer that will be a high risk of churn who'll cost you more than you make. If it's no, then you've dealt with it, and opened to a real conversation on the things that matter.

I have found that you need to make sure your customers' goals and needs align with your own in the long term. Filling an immediate need to defuse a problem may be a way to gain a client but it also may be a way of gaining a problem. Vetting your client as much as they vet you to secure a mutually beneficial relationship is key.

Be clear on your expectations, it’s a standard term that you will not deviate from. Where possible show that it’s in everyone’s best interest to align!

In cloud renewals, it’s crucial to clearly understand and articulate your unique value proposition. This means knowing exactly what sets your cloud services apart from competitors, whether it's superior uptime, better customer support, enhanced security features, or more flexible pricing models. For example, if your cloud service offers a 99.999% uptime guarantee while competitors offer only 99.9%, emphasize how this higher reliability can reduce downtime and boost business continuity for the customer. Being able to demonstrate concrete benefits can help justify why renewing with your service is the best choice.

When negotiating cloud renewals, anticipate potential objections that the customer might raise, such as concerns about cost, data migration challenges, or integration with existing systems. Prepare responses and solutions to these objections in advance. For instance, if a customer is worried about the complexity and cost of migrating data to your cloud platform, offer a detailed migration plan and highlight previous successful migrations, possibly including case studies or testimonials from other clients who have seamlessly transitioned to your cloud service.

Become an expert in your field to that industry or group of people. Never talk down about a competitor, steer the conversation toward how you have been able to help other clients n the past. Share experiences and let the client talk about themselves and their passion. We all know price is important but there are many different ways to be valuable to your client.

In my industry (Insurance/Risk Management) the insurance rate on a proposal makes the decision appear easy for a client. You can use this to upsell, cross-sell and ask for referrals. When things are going well do not be afraid to breach the subject of a bigger sale or a different opportunity with your client, An assumptive close is always a good choice here in that the rate has sealed the deal so the conversation can expand to other services or friends and family that may benefit from your services.

During renewal negotiations, emphasize the long-term benefits and stability of continuing with your cloud services. Show how a long-term relationship can bring ongoing improvements, personalized support, and consistent upgrades that align with the customer’s evolving needs. For example, propose a multi-year contract that includes annual reviews and adjustments to ensure the services continue to meet the customer's requirements, offering incentives such as price locks or additional features for longer commitments. Highlighting the security of a long-term partnership can alleviate concerns about future uncertainties.

Being consistent and responsive is a great way to build, strengthen and continue long-lasting relationships. Clients do not necessarily need to know the answer to a question or an inquiry right away but they do want to know someone has heard them and is working on it. This is why our concierge level of insurance services works so well. We respond quickly and are consistent with our business operations. Our clients know what to expect. Some of them wait on our renewal process to trigger their business process. A client quote " Jason I always know you will contact me X number of days before my renewal so when you do, I start my year-end process" That client has set his process based on the consistency of our agency. I am proud of that.

In my business, we collect insurance policies and documents from our clients in order to generate a proposal. We require some information from our competitors. I always encourage the client to " send me everything and I will sort through it". I have learned some very valuable things using this strategy and it helps the client by allowing them to cut down on time sorting for specific "dec pages". When I first started in the business 23 years ago we would ask for their "book" of the binder of paper policies. Now we request the digital version of that. Their entire insurance portfolio.

When I learned that no matter what we are selling we are all in the relationship business my career changed. I focused on s smaller number of valuable, mutually beneficial relationships, instead of the volume-like approach of most agents and it set me apart.

It's important to understand what your vendor values and their timelines. I have found some are more likely to discount at their year end in an effort to close more revenue. Other vendors may greatly appreciate referrals or testimonials. Also if you are able to renew for a multyear period that can lock in a set rate that avoids uplifts and inflationary increases. The number 1 thing you can do is reach out to your vendor before the renewal is due (if possible 6 months or more in advance). Let them know you want to negotiate and talk about any challenges you have had with them, getting the conversation started sooner allows the vendor more time to resolve any outstanding issues and get approval for nonstandard requests.