software is one of the most negotiable purchases that companies make
Software is unique in that the licenses and capacity purchases do not contain any direct input costs. With that being the case, software companies do not assess how much gross margin they stand to make. They use other processes and factors to measure and maintain profitability and are focused on how much discount they have to provide to secure your business.
By truly understanding the processes that software companies go through, the factors they are driven by, and what levers can be pulled, you can ensure you are getting the best deal.
Our cost optimization service offers zero risk through a contingency model. We only collect a fee when we are successful in helping to deliver additional cost savings; otherwise, there is no charge for our services.
Augment your existing expertise and processes
We know most companies typically have effective procurement organizations with excellent negotiation skills whose sole purpose is getting the best deal. The ForceLight Group augments your existing expertise and processes with our knowledge base and best practices to drive additional savings.
The cost optimization service typically begins when you have your vendor's best and final pricing in hand. From there, our advisors provide tactical guidance tailored in accordance to the information gathered during the proposal validation service. Our advisors will provide a series of actions to be taken in response to the vendor's latest proposal to illicit additional concessions from the vendor.
Best practices and processes
What value can the ForceLight Group bring to your negotiations? One end of the negotiations spectrum is the process of going back and forth on price until it goes down. This is called positional bargaining and its effectiveness is limited and can also be damaging to vendor relationships.
The other end of the spectrum is structured processes and practices that get you what you want while protecting vendor relationships. If you are not operating at this end of the spectrum, the ForceLight Group can help.
Behind the scenes process
Under the cost optimization service, the ForceLight Group provides guidance directly to the client. Our advisors do not interact with vendors and therefore vendors typically are not aware of our involvement.
All types of technology purchases
The knowledge base and processes utilized with the cost optimization service can be leveraged on any type of technology purchase. The same principles apply whether the purchase is software, hardware, or services. Whether it is a new purchase for licenses or contract renewals, such as support and maintenance contracts, we can bring value and deliver cost savings.
Ensure that you get what you want
Can you negotiate a contract on your own? Sure you can. Is there a possibility that some money could be left on the table if you do not have the right processes and expertise? Possibly. If there is any doubt in this area, leverage the ForceLight Group to ensure that you get everything you want out of your negotiations.