Your ERP vendor raises prices unexpectedly. How will you navigate this sudden change?
When your ERP vendor announces a price increase, it's crucial to assess the situation calmly and strategically. To manage this unexpected expense:
- Review your contract for any clauses that may limit such increases or provide negotiation leverage.
- Explore alternative vendors or solutions to ensure you have options and potentially leverage for renegotiation.
- Consider negotiating value-added services to offset the cost increase and get more for your money.
How do you handle unexpected cost changes with key vendors? Share your strategies.
Your ERP vendor raises prices unexpectedly. How will you navigate this sudden change?
When your ERP vendor announces a price increase, it's crucial to assess the situation calmly and strategically. To manage this unexpected expense:
- Review your contract for any clauses that may limit such increases or provide negotiation leverage.
- Explore alternative vendors or solutions to ensure you have options and potentially leverage for renegotiation.
- Consider negotiating value-added services to offset the cost increase and get more for your money.
How do you handle unexpected cost changes with key vendors? Share your strategies.
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Unexpected ERP price hikes can feel like your favorite restaurant suddenly doubling menu prices mid-meal. Panic? No. Pause? Yes. First, assess the value - are the added costs justified by new features or better support? If not, negotiate or explore alternatives. For example, one client faced a sudden price surge but renegotiated by removing unused modules, saving 30%. As consultants, we act as mediators, ensuring you either get more value or find smarter, cost-effective solutions without disrupting operations.
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start by reviewing your contract for terms regarding pricing adjustments. Open transparent communication with the vendor to understand the reasons behind the increase and explore potential negotiation options, such as discounts, phased pricing, or extended payment terms. Evaluate the cost-benefit ratio of continuing with the vendor versus switching to alternatives. Internally, reassess budgets and align stakeholders on priorities. If feasible, consider optimizing existing licenses or exploring third-party support to control costs while maintaining system efficiency.
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