Ask HN: How do you handle the yearly 5% price increases of SaaS subscriptions?
2•hbarka•1h ago
Hello HN. If your company subscribes to SaaS services, you are probably all too familiar with the dreaded
5% uplift during the annual renewal of a SaaS contract. “Uplift” is a euphemistic term that obscures what is actually happening: a price increase. This vendor favorite word of uplift makes the change sound positive or value-enhancing when, from the customer’s perspective, it simply means paying more. The vendor lock-in is a real trap with limited recourse. How do you deal with it?
Comments
toomuchtodo•57m ago
Be prepared to move elsewhere if they attempt to raise the price. Create an artifact like a spreadsheet to model whether moving is worthwhile (considering the time and effort required to migrate) if asking for a concession on a price increase is unsuccessful. Also, use price/cost intelligence vendors to understand what others are paying for the SaaS when possible for negotiation purposes. Treat your vendors like they are commodities whenever possible to defend against vendor lock in risk. Long term contracts (~3 years) with capped increases tied to inflation are also a potential option if your vendor offers it.
The counterparty with the most leverage and who cares the least is the one who usually wins. Be that counterparty when you can.
toomuchtodo•57m ago
The counterparty with the most leverage and who cares the least is the one who usually wins. Be that counterparty when you can.