# Supplier Contract Renewal Negotiation Pack ## 1. Renewal Snapshot - Supplier: CRM supplier - Service/product: CRM subscription and support - Current annual value: £14,500 - Proposed renewal value: £18,000 - Increase: £3,500, which is approximately 24.1% - Renewal period: Next 12 months - Renewal deadline: Not provided - Buyer position: Continued service is needed, but the price increase is not yet evidenced - Switching position: Switching before renewal is not practical - Key risk if no action is taken: The business accepts a material price increase without understanding the basis for the increase or securing improved support commitments. ## 2. Current Position Summary The current arrangement appears to be operationally important because the business is not ready to switch before renewal. Usage is broadly unchanged from the prior year, which weakens the case for a large usage-driven increase. Support has also been slow, which gives the buyer a reasonable basis to request either a lower renewal price, improved support terms, or both. The negotiation should not threaten immediate exit unless that is realistic. The stronger approach is to acknowledge the need for continuity, challenge the increase professionally, ask for evidence, and request a revised proposal that reflects stable usage and the support experience. ## 3. Current Terms vs Proposed Renewal | Area | Current Position | Proposed Renewal | Comment / Negotiation Point | |---|---:|---:|---| | Annual price | £14,500 | £18,000 | Increase of £3,500 / 24.1%; request explanation and revised pricing. | | Term | Not stated | 12 months | Confirm renewal start/end dates and notice period. | | Usage | Broadly same as last year | Not stated | Ask supplier to show usage data supporting the increase. | | Support | Slow responses reported | Not stated | Request support SLA commitment or named escalation path. | | Scope | Not provided | Not provided | Confirm whether new features, users, modules, or services are included. | | Exit/cancellation | Not provided | Not provided | Confirm cancellation window and whether auto-renewal applies. | ## 4. Commercial Assessment The proposed increase looks under-evidenced based on the information provided. A 24.1% increase may be justifiable if there are new modules, higher usage, improved service commitments, or market-wide cost pressures, but those reasons have not yet been supplied. Because usage is flat and support has been slow, the buyer has a credible basis to challenge the increase and request a revised commercial offer. The practical negotiation target should be continuity with improved value, not immediate termination. ## 5. Negotiation Objectives - Ideal outcome: Hold the renewal at £14,500 or secure a nominal increase only, with clear support improvement commitments. - Acceptable outcome: Renewal below £16,000 with defined support response expectations and a named escalation contact. - Escalation point: Supplier refuses to explain the increase or provide any concession despite flat usage and support concerns. - Non-negotiables: Continuity of CRM access, no unexpected service disruption, clear renewal dates, clear cancellation terms. - Tradeable concessions: Prompt signature, annual payment timing if cash flow allows, agreeing a 12-month renewal, agreeing a short review meeting after three months, providing a case study only if true and commercially acceptable. ## 6. Negotiation Levers | Lever | How to Use It | Evidence Needed | |---|---|---| | Flat usage | Explain that the renewal should reflect stable usage rather than assumed growth. | User counts, active seats, usage reports. | | Support delays | Ask for improved response times or account management as part of renewal. | Support tickets, dates, response times, unresolved issues. | | Budget pressure | State that the proposed increase is outside budget and requires justification. | Budget limit or internal approval threshold. | | Continuity value | Offer quick agreement if the supplier revises the proposal. | Internal approval deadline. | | Future review | Offer a mid-term review to discuss expansion only after service improves. | Business growth plans, support improvement expectations. | ## 7. Supplier Questions and Evidence Requests 1. Please provide the basis for the proposed increase from £14,500 to £18,000. 2. Which elements of the renewal price relate to licence costs, support, platform fees, inflation, or additional services? 3. Has our actual usage increased compared with last year? Please provide the relevant usage report. 4. Are any new features, modules, or service improvements included in the proposed renewal? 5. What support response times will apply during the renewal period? 6. Can you provide a named escalation route for delayed support requests? 7. What revised pricing can you offer for a 12-month renewal based on stable usage? 8. Are there options to reduce unused seats, downgrade modules, or remove unused features? 9. Please confirm the renewal deadline, notice period, and whether any auto-renewal terms apply. ## 8. Supplier Email Pack ### Opening negotiation email Subject: CRM Renewal Proposal — Request for Review Dear [Supplier Name], Thank you for sending through the renewal proposal for the next 12 months. Before we can progress approval internally, I would like to review the proposed increase from £14,500 to £18,000. Our usage appears broadly consistent with last year, so the scale of the increase is difficult for us to support without further explanation. Could you please provide a breakdown of the proposed pricing, including any changes relating to licences, usage, support, platform fees, inflation, or additional services? We would also like to discuss support arrangements for the renewal period. We have experienced slower-than-expected support responses during the current term, so any renewal would need to give us greater confidence around response times and escalation routes. Please could you send a revised proposal that reflects our stable usage and includes the support commitments available for the next 12 months? We value the continuity of the platform and would like to resolve this constructively before the renewal deadline. Kind regards, [Name] ### Shorter price challenge version Dear [Supplier Name], Thanks for the renewal proposal. The increase from £14,500 to £18,000 is material and is not something we can approve without further justification, particularly as our usage is broadly unchanged from last year. Please can you provide the pricing basis for the increase and confirm what revised renewal options are available? We would also like to see support response commitments for the renewal term, as support delays have affected our experience during the current period. Kind regards, [Name] ## 9. Meeting Script or Call Notes Opening: "We want to continue using the platform, but the proposed increase is higher than we expected given our usage is broadly flat. We need to understand the basis for the increase and whether you can improve the commercial position." Questions to ask: - "What is driving the increase?" - "Is this based on our usage, a general pricing change, or added services?" - "What pricing flexibility is available for a 12-month renewal?" - "Can we remove unused features or seats?" - "How will support response times improve during the renewal period?" Concession language: - "If you can revise the price to a level closer to our current spend and confirm better support escalation, we should be able to move approval forward quickly." Close-out wording: - "Please send the revised proposal and support commitments in writing so we can complete the internal approval review." ## 10. Internal Approval Note Recommendation: Do not approve the £18,000 renewal as currently proposed. Proceed with negotiation and request a revised proposal. Reasoning: The proposed renewal represents an increase of approximately 24.1% compared with the current annual cost. Usage is understood to be broadly unchanged and support performance has been slow, so the commercial basis for the increase is not currently evidenced. Preferred approval position: Authorise negotiation up to a maximum acceptable renewal value of £16,000, subject to written confirmation of support commitments, renewal dates, cancellation terms, and no unexpected scope reductions. Risk: The business is not ready to switch before renewal, so negotiation should preserve continuity and avoid implying an immediate exit unless a backup plan is confirmed. ## 11. Risk, Legal, and Approval Notes - Confirm the renewal deadline and whether auto-renewal applies. - Check notice period before sending any termination or non-renewal wording. - Confirm whether any data export or transition rights are relevant if future switching is considered. - Ask finance to confirm the approval limit for the revised renewal value. - Consider legal or procurement review if the supplier proposes a multi-year term, liability change, exclusivity, or material changes to service terms. ## 12. Final Action Checklist | Action | Owner | Deadline | |---|---|---| | Confirm renewal deadline and notice period | Buyer | Immediate | | Request price breakdown and revised proposal | Buyer | Today | | Gather support ticket evidence | Operations / Admin | Within 2 working days | | Confirm actual usage and active seats | CRM owner | Within 2 working days | | Hold supplier negotiation call | Buyer + Supplier | Before renewal deadline | | Prepare internal approval note | Buyer | After revised proposal | | Confirm agreed terms in writing | Buyer + Supplier | Before signature |