Organisations transitioning to new AI-driven tools often face a financial double burden of overlapping contracts, but there are strategies to manage this effectively:
Be Open and Honest. Foster collaboration with vendors to negotiate flexible deals and candidly address budget difficulties.
Focus on Time to Value: Review current contracts carefully to understand exit conditions and avoid unnecessary expenses from missed deadlines.
Sign Now, Pay Later: Negotiate deferred payments to ease the financial burden during the transition and ensure subsequent payments align with billing periods.
Practical Suggestions:
– Negotiate on implementation fees for deferred billing.
– Introduce deferred payment discussions after finalising core terms.
– Use competition among vendors to secure better terms.
Consider Longer Terms: Propose extended contracts with a complimentary implementation period for smoother transitions without dual payments.
Timing is Key: Take advantage of slower sales periods (like Q3) to negotiate better deals, ensuring agreements are signed promptly to retain incentives.
Source: LegaltechHub
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