Mistakes that kill your Microsoft negotiation

Negotiating with Microsoft is a delicate process that requires being aware of what to do and what to avoid. Whether it be from biased partner advice, overstating your ask, or adhering to Microsoft’s timeline, easy mistakes can thwart any attempt at a beneficial negotiation. These six mistakes encompass what we at LicenseQ have experienced with our many clients.?

1) Do not involve both Microsoft and Microsoft partner in the IT strategy. We often see partners influencing a client’s internal organization regarding which cloud offerings to pursue. Always be wary of this because we have often seen them prioritize their own rewards over what you truly need. It is in their interest to get you to over commit. However, being aware of this and questioning their suggestions is the first step in preventing exploitation.??

?2) Do not rely on promises from your Microsoft Account Manager or Commercial Executive that cannot be made. This often occurs in situations where the client has a good relationship with their Microsoft representative; this leads to promises on the employee’s side regarding discounts and offers. However, you can never rely on these as the account manager can often change and disappear. For this reason, always have written proof of your agreements (e.g., Email).?

?3) In a negotiation, never state your exact request.??

Do not enter a negotiation and state, for example, “I want a 30% discount”. This allows Microsoft to easily determine what they are willing to give, if you want 30, they will offer max 20%. They know what you are aiming for and will only grant it against their requirements. Furthermore, Microsoft uses this behavior to analyze the client as it gives insights into their negotiation strategy, or lack thereof. Sharing this exact question internally is great for cohesiveness, but make sure it stays internal.??

?4) Transparency is good but be wary of too much transparency. Being direct, open, and transparent with Microsoft is great, but any extreme can be damaging. Although Microsoft promotes creating strategic partnerships, in reality, they are not necessarily willing to help you with your business model, instead they focus on getting you to buy everything they offer, despite it being overkill. ?

?5) Do not let the Microsoft deadlines lead you in your decision. Always stick to your own timeline instead. Try to respect their deadlines but if this does not suit you, rely on your own timeline instead.??

?6) Do not do tradeoffs. Buying the suite is far more expensive than buying what you need 9/10 times. Negotiating a high discount through this might be fun and empowering, but it often goes South through underutilization and difficulties implementing the suite internally.?

?Remember these 6 mistakes next time you negotiate to increase your chances of success. If you need additional help, hire a professional consultant, such as LicenseQ. Feel free to reach out if you have questions, comments, or feedback! If you find the content useful, check out our LinkedIn and YouTube page where we post free insightful content and tutorials. ?