How to prepare for a SaaS renewal (and actually win the negotiation)

If you’ve got a renewal coming up and your plan is to just “see what they offer,” stop right there.

Most companies leave thousands on the table during renewals not because they can’t negotiate, but because they walk into conversations unprepared. Pricing models are confusing, contracts are long, and vendors can tell when you're winging it.

In our recent webcast, our procurement experts shared the exact playbook we use to help companies save over $300K on SaaS contracts and spoiler: the secret is in the preparation.

You can view the full webcast video above, with highlights below.

1. Understand the Pricing Model

You can’t negotiate confidently if you don’t understand how the pricing is structured.

Before you engage in renewal discussions, get clarity on how you're being charged,  whether it's per user, usage-based, tiered, or a hybrid model. Each approach has different implications for cost, scalability, and negotiation leverage.

Here are the most common pricing models to keep in mind as you review your contract.

Tip: Ask for transparent pricing,  list price, discount, per-product rates, and incentives. Don’t accept bundled totals without detail.

2. Audit before you negotiate

Don’t wait until the renewal call to get organized. Knowing where you stand gives you real leverage.

Ask yourself (and your team):

• Are we actively using this tool? Pull usage data and check adoption rates.
• Which features actually deliver value? Identify what’s driving ROI — and what’s not.
• Could we operate without it? If the answer is yes, you’ve got stronger negotiating power than you might think.
• What alternatives exist? Even exploring competitor quotes can shift the dynamic in your favor.

Tip: Even if you’re not planning to churn, suggesting that you’re evaluating the market often unlocks better pricing, support, or terms.

3. Benchmark your SaaS pricing

What you paid last year isn’t a benchmark, it’s a baseline. To negotiate smarter, you need to know what other companies like yours are paying right now.

Here’s what to look for when benchmarking your software contract:

• Typical discounts based on your company size or industry
• Per-user and per-feature pricing ranges
• Incentives like free onboarding, longer terms, or bonus months
• How your renewal quote compares to current market averages

Even if you don’t show these numbers in the negotiation, they guide how much you can push or help you spot when you’re being overcharged.

Want access to free benchmarking insights? Let’s chat.

4. Build your negotiation strategy

Walking into a vendor conversation without a plan is like showing up to a job interview without reading the job description. You need to be ready.

Start by defining:

• Your target price: based on benchmarks, budget, and value
• Your non-negotiables: the must-haves and dealbreakers
• Your BATNA: your Best Alternative To a Negotiated Agreement (in case this deal falls through)

Loop in legal, finance, and IT early. If you wait until the last minute to flag issues, reps may stall, push back, or let unfavorable terms auto-renew.‍

Tip: Start renewal planning 90+ days before the contract ends. The earlier you start, the more options and leverage you have.

5. Finalize the deal and protect your terms

Once you’ve landed on terms you’re happy with, make sure everything is documented clearly. Get every commitment in writing, whether it’s pricing, add-ons, or incentives.

Then, review the contract carefully for common traps:

• Automatic uplifts, like a 10% price increase year-over-year
  
• Buried auto-renewal clauses, especially anything requiring 60+ days’ notice
  
• Bundled pricing, with no breakdown of what you're actually paying for

Tip: Set a calendar reminder 2 to 3 months before the next renewal. That gives you time to revisit usage, re-benchmark pricing, and renegotiate without scrambling.

Real results: what this looks like in practice

$80k saved on a ZoomInfo renewal

A 250-person tech company was facing rising renewal costs with ZoomInfo. After benchmarking their quote and evaluating alternatives, they switched to Apollo and saved $80,000 in just one year without losing core functionality.

$50k cut from a hubspot deal‍

A 250-person tech company was facing rising renewal costs with ZoomInfo. After benchmarking their quote and evaluating alternatives, they switched to Apollo and saved $80,000 in just one year without losing core functionality.

Final takeway: preparation is your edge

Strong renewals aren’t won during the call, they’re won in the weeks (or months) leading up to it.

When you understand how your software is priced, audit your team’s actual usage, benchmark against the market, and start the process early with a clear negotiation plan, you’re not chasing a discount,  you’re setting the terms.

That’s the difference between just renewing… and renewing on your terms.

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