Gartner Research

Use Fiscal Year-End Dates and Two Other Powerful Bargaining Tactics When Negotiating IT Contracts

Published: 17 March 2014

ID: G00261412

Analyst(s): Jo Ann Rosenberger, Frank DeSalvo

Summary

To optimize IT deals, procurement professionals should research competitive vendors' products and fiscal year-end dates — to use as bargaining power to improve discounts, lock in long-term maintenance pricing and negotiate protective contract terms and conditions.

Table Of Contents
  • Key Challenges

Introduction

Analysis

  • Tactic 1. Create a Competitive Environment to Use as a Key Lever for Bargaining Power
    • Use This Negotiation Planning Tip to Avoid Positioning Your Organization in a Risky Sole-Source Situation
  • Tactic 2. Use the Vendor's Quarter-End and Fiscal Year-End Dates to Achieve Deeper Discounts and Improved T&Cs
    • Use This Negotiation Planning Tip to Capture Critical Fiscal Year-End Dates and Avoid Diminishing Your Bargaining Power
  • Tactic 3. Use the Executive Management Approval Process to Align Contract Signing With the Vendor's Quarter-End or Fiscal Year-End Dates
    • Use This Negotiation Planning Tip as a Strategy to Avoid Missed Opportunities for Lower Pricing, Deeper Discounts and Protective T&Cs
  • Follow These Tactics to Realize Initial and Long-Term Cost Savings and Cost Avoidance

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