You’re probably buying (or giving the approval for) a new SaaS solution for your team every other week. Especially if you’re scaling fast. From transversal tools to department-specific ones, SaaS are blossoming. On average, a mid-market business uses 137 different apps! And there is no sign that the SaaS industry is going to slow down anytime soon.
As you manage more and more softwares, how do you make sure you’re paying the right price for each one? Especially if the number of buyers in your company is expanding. From 12 in 2019, there are now 21 people involved in buying SaaS solutions on average in a mid-market company. Most of the time, they don’t have a buyer background. And they haven’t received any specific training for contract negotiation either.
In this context, how do you ensure you’re getting the best deal for each SaaS? You can start by keeping reading. ;-)
Let’s take a look at the most common situation. Why is it so complicated to know if you’re paying the right price for your SaaS solutions? It is a combination of several elements:
That’s the situation most mid-sized companies are in when entering a SaaS negotiation. The only way to know if you’re paying a good price is to ask around. Direct network, Slack groups, Whatsapps… You can discuss with peers the fees vendors charge them with, to get a general idea of the market. It will give you a partial benchmark, but it’s a time-consuming process (and you haven’t started the negotiation part yet!).
You’re not (or your team) an expert in SaaS buying. Do not worry: there are some techniques you can use to drive the price down. Negotiation is an integral part of the SaaS buying process. Most of the time, SaaS providers expect it. Take advantage of it!
We’ll share 3 tips in a minute. But if you had to keep only one takeaway from this article, let it be: prepare your negotiation, be ready! Seems obvious? The number of teams who aren’t would surprise you. Most of them do not prepare their negotiation. They dive head first into a price discussion without knowing what to ask for. The person winning the negotiation is always the most prepared one, remember that.
Now that it’s settled, here are 3 useful tips for a good SaaS negotiation:
These tips are only a preview of the techniques used by the best SaaS buyers. If you want to become a negotiation expert, read about the advice from 20+ specialists.
Let’s be realistic. While the tips we shared are effective, your SaaS negotiations will still take time. It is a distraction from the core mission of the person making the purchasing decision. You could try a different approach: SaaS procurement. What’s in it for you? An access to a full benchmark, an outsourced negotiation process and the certainty of paying the best price for your SaaS tools.
How does it work with Welii? We help you streamline your SaaS buying process.
It’s that simple! Our mission is to help you regain control over your SaaS spend. According to our benchmark, high-growth companies go from an annual SaaS cost per employee of €3,700/year to €5,900+/year when growing from 100 to 1500 people on average.
Making sure you pay the right amount for each tool is the first step to make your balance sheet go down. With the money you saved, you can make investments into your product and your customers. We also provide a service of inventory: the usage and costs of all your company’s SaaS licenses. We detect additional savings opportunities (inactive users, redundancies, etc).
Want to know more? Contact us to get a demo or to get a free audit of your current SaaS stack to estimate your potential savings.
Shadow IT is present for a company of any size and we always identify 3x more tools than our customers thought. If you spend less than $400k annually on SaaS tools, we'll identify fewer saving opportunities than a client who spends millions, but we'll help you quickly implement a data-driven buying strategy to prevent this wasteful situation from occurring and keep you focused on your business.
The security of your data is our primary concern. Which is why we have taken appropriate measures to protect your business.
You are free to add any budget owners or anyone involved in SaaS purchasing to streamline your procurement buying process at no additional cost to our platform.
Managing users and identities is a separate business that we don’t do. However, to bring you value and help you with this process, we have partnered with industry leaders like Okta and Auth0 so that we can help you in your Zero Trust Identity process.
We have developed a simple and intuitive solution allowing you to analyze all your SaaS inventory data through dashboard and dynamic list views based on search criteria and filters.
Spendesk is an enterprise expense management solution that allows all employees to pay for SaaS tools. Welii will provide you with insight and support to help you optimize your spending, add leverage to your negotiations, and remove the headaches associated with SaaS purchasing.