Renegotiate with Confidence: How to Reclaim Control of Your Contracts

Renegotiating a vendor contract isn’t just a task, it’s an opportunity. With the right preparation and a proactive mindset, IT and operations teams can turn routine renewals into moments of real business advantage. Starting your internal review 90 days in advance gives you the time to gather feedback, analyze performance, explore other vendors, and come to the table with data-backed requests that reflect your evolving needs. 

Developing stronger vendor contracts calls for the right platform, plenty of preparation, a proactive mindset, and sometimes… smart renegotiation tactics. Whether you're aiming for better pricing, stronger service levels, or more flexible terms, it’s important to stay in control of the process. 

If you’re doing things right, you’ll start reviewing your contracts at least 90 days before they are due to expire. This gives you time to thoroughly review the contract, assess its value and prepare to renegotiate the terms of the contract, if needed.  

Internal Contract Review Checklist: 

• As you begin your internal review of the expiring contract, have some of your team members explore other vendor options. It will be good to have the data for cost comparisons and even better to have a back-up plan in the event that something goes wrong.  
• Review the contract internally 
  
  • If Key Performance Indicators (KPIs) or Service Level Agreements (SLAs) were laid out in the contract, evaluate how well it performed.  
  • Gather data on various aspects of the product, program, or service- such as usage, pricing, need, satisfaction 
  • Read (or have your lawyer/contract expert review) the contract, looking for unique and key terms, deadlines, penalties, and obligations 
  • Consider the Return on Investment (ROI) received 
  • Does the contract pose any compliance issues? 
  • Speak with the primary users of the product, program, or service and take their feedback into consideration
• Draft an updated scope and set of terms for the contract based on what you’d like to see in the next iteration of the contract. Where possible, back up your requests with data. Don’t be afraid to get creative. As you probably know from the variety of contracts you manage, options could include volume tiers, SLAs, renewal caps, opt-out windows, and more. 
• Review your new draft with the appropriate members of your internal staff. 

Proactive Contract Renegotiation 

REACH OUT! As your internal review is wrapping up, reach out to your vendor to schedule some time to discuss the upcoming renewal. Initiating conversations well in advance will give you added leverage and can help you avoid automatic renewals or service disruptions, should negotiations take longer than expected.  

Contract Renegotiation Tactics 

Handling a contract renegotiation is as much an art as it is a strategy. No two renegotiations are exactly the same and success often depends on a mix of factors, including the vendor’s flexibility, how vital your business is to their bottom line, how well-prepared you are with data, and how early you start the conversation. A thoughtful approach considers not just what you want to change in the agreement, but how to position your request so it aligns with the vendor’s interests too. Whether you’re pushing for better pricing, stronger service levels, or more favorable terms, a solid renegotiation plan keeps you in control and sets the stage for a win-win outcome. Here are a few best practices worth considering. 

Start Out Strong 

• Set Clear Objectives. Define what you want to achieve from the renegotiation. Whether it's cost reduction, improved service levels, or additional features, having clear goals will guide your discussions. 
• Convey any changes to your business. It’s possible the vendor’s company has some new options you’re not aware of.  
• Leverage data. Be sure to leverage usage data and benchmarks when you present your findings, as well as similar information that strengthens your case for a revised contract. 
• Keep an open mind. Remember to always keep an open mind and be willing to explore creative solutions that can enhance the value of the contract for both sides.  
• Document Everything. Keep detailed records of all discussions, agreements, and changes. This documentation will be crucial for future reference and ensuring both parties are on the same page.  

If Renegotiations Get Difficult 

1. Use Strategic Silence and Open-Ended Questions: Employ strategic silence to encourage the vendor to speak more. Ask open-ended questions to gain deeper insights into their perspective and potential flexibilities. 
2. Push Back Intelligently: Set clear demands while maintaining a respectful and assertive tone. Avoid overplaying your hand, as this can lead to a breakdown in negotiations. 
3. Be Prepared to Walk Away: Hopefully you followed earlier advice and have alternative options ready. Reinforce that the negotiation is mutual and that you are open to exploring other vendors if your needs can’t be reasonably met. 

BetterTracker helps finance, IT, and operations teams take control of contracts, subscriptions, and technology spend. By centralizing renewals, eliminating tech sprawl, and providing real-time visibility, BetterTracker empowers businesses to simplify compliance, reduce costs, and make smarter decisions.