Last week I purchased HR software for a client. When you purchase business software you typically have to go through several steps:
- 🤝🏽 Introduction meeting - exchange contact information
- 💻 Demo meeting - where they show you an example of the product
- 💸 Pricing negotiation - where you negotiate your pricing plan
❌ Lead with No
Now this isn't for you to say no. Its for them to say no. You want to set them up to say no. The reason for this? To make them feel in control. I like to ask if the software can integrate with another random software (that I know it can't.. hehe). Forcing them to say no. They feel in control. This comes from the negotiation book called, Never Split the Difference.
⌛ Wait Until the End of Quarter
Wait until the last 2 weeks of the quarter. My sister is in software sales. They are more likely to give you a discount at the end of a quarter to meet their quota. It's all about the money. They need this deal more than you - because they are paid on commission.
🏷️ Ask for a Discount
The best phrasing is to ask if their is an incentive to sign before the end of the quarter. The word "incentive" screams discount without sounding like you are trying to pull a fast one on them.
⬆️ Ask for More
Say you will get back with your counterparts. Wait at least (2) days. When they send you the proposal with the discount, say "We can sign tomorrow if you can do a 40% discount." The percentage may be different but just take the original percentage they said they can do and add 5% more. So if they said they could do 20%, ask for 25%.
✍🏽 Sign on the Last Day
The timing is key. Make them wait until the last day of the quarter. Preferably late in the day. Just to make sure you are really getting the best deal. Sometimes they will throw in something else to get those lingering contracts signed.
👩🏽💻 Software as a Service
You can sometimes get the monthly fee discounted by a few cents per user (sometimes more depending). But they are more willing to negotiate the implementation fee with you. Sometimes if you have more users you can get a discount per user as well (typically 30+ users).
I was able to get a $0.60 discount on the cost per user because I had 30+ users. I was also able to get down to 40% the implementation fee which is where they have a person help you set up your software. Overall, I was happy with the outcome!