I've got three proposals for migrating from on-premise to Microsoft 365 and I'm wondering how to negotiate with the vendors. Vendor A, who is our current managed service provider, is not performing well, and our management is considering switching. Vendor B is someone we've collaborated with before, but not for server management. Vendor C is new to us, yet they've been supportive and engaged throughout the process, even though their quote is almost double that of Vendors A and B. Vendor A has proposed that multi-factor authentication (MFA) is optional, while Vendors B and C say it's a must. Additionally, Vendor C offers to work on data loss prevention (DLP) policies, which the others do not. I want to know how to approach negotiations, especially with Vendor C, whom I like the most but whose pricing is significantly higher than the others. Any suggestions?
5 Answers
It seems like Vendor C is the best option in terms of support and expertise, even if they're pricier. You could start by being open about your budget constraints. Let them know you appreciate their collaborative approach but that their quote is out of reach. Ask if there are any aspects of the proposal you can adjust to lower costs, maybe scaling back some features or services without compromising the migration's integrity. Also, conduct your own research on what the best practices for a smooth transition are; it will empower you during discussions.
From your description, it sounds like Vendor C has a better grasp on what needs to happen for the migration. Their willingness to engage and set up best practices is definitely valuable. If the price difference is significant, try breaking down the project parts and getting an estimate of what those actions are really costing. That could give you leverage in discussions.
I feel you on the tough spot! Vendor C looks proactive, and sometimes spending a bit more can save you headaches down the line. However, don't hesitate to push Vendor C to justify their costs; maybe they can provide a detailed breakdown of their pricing. If Vendor A has too many red flags, ensure that your concerns are communicated clearly to them if you choose to stick with them.
Vendor B is definitely worth considering as well. Sometimes vendors aren't upfront about costs, but they may have hidden advantages like better service or flexibility. If you're not completely sold on Vendor C's pricing, check with Vendor B to see if they can step up with a better offer or more services to help you make a decision.
If you decide to go with Vendor C, try to negotiate by linking your long-term relationship potential with them to the proposal's price. Maybe hint at future projects or more extensive collaborations where they could get more business from you down the line if they adjust their pricing. But if they can't budge, you may want to reconsider if investing in a vendor you trust is worth the price.
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