Salesforce Engagement Success Story: Empowering an Upper Midmarket Manufacturing Company with Optimal Salesforce Contract Renewal
At The Negotiator Guru, we recently had the privilege of working with an upper midmarket manufacturing company to navigate their Salesforce contract renewal process. Our client had two primary objectives: to validate the competitiveness of their rates and to optimize their license footprint based on their actual platform utilization. Through our strategic approach, we achieved outstanding results, securing cost savings of $573,000 and cost avoidance of $952,000 within the first year alone.
Our Approach
To ensure a successful engagement, we applied our trusted 4-step IT Software Negotiation Process, tailored specifically to address the unique needs of the manufacturing industry:
Step 1) Discovery
We conducted interviews with key stakeholders within the client's organization to gain comprehensive insights into their historical utilization of Salesforce. By understanding how they had leveraged the platform in previous years, we were able to uncover valuable opportunities for improvement.
Step 2) Strategy
Recognizing the importance of aligning with the client's global business requirements, we facilitated an internal workshop. This collaborative session served as a platform to identify and gain consensus on the client's specific needs, ultimately creating a forward-thinking conceptual roadmap that would guide our negotiation strategy.
Step 3) Negotiate
Armed with a deep understanding of the client's Salesforce utilization and their strategic roadmap, we conducted thorough rate benchmarking. This analysis allowed us to accurately assess the competitiveness of their rates and advise the client on the potential for cost savings. Through effective negotiation techniques, we successfully secured a contract that was both right-sized and right-priced for their evolving needs.
The Remarkable Results
Our engagement delivered remarkable outcomes for the client. Within the first year alone, they realized substantial cost savings of $573,000 and achieved cost avoidance of $952,000. Beyond the financial gains, our collaboration empowered the client with a significant technology uplift. By optimizing their Salesforce contract and aligning it with their specific requirements, we ensured that they had the ideal platform to drive their business forward.
At The Negotiator Guru, we are committed to empowering organizations in the manufacturing industry with favorable negotiation outcomes. This success story exemplifies our ability to secure substantial cost savings while providing clients with tailored solutions that align with their strategic objectives. Contact us today to leverage our expertise and drive optimal Salesforce contract renewals for your organization.
See More Case Studies
From Phoenix to Tokyo, we turn impossible vendor demands into client victories.
How we reduced carrier shipping expenses by $450,000
Our client was a mid-market manufacturing company with approximately $80M in annual revenue Our focus for savings was in reducing the costs of their carrier shipping services.
We created these savings in a 3 ways:
- We saved them 20% on their LTL and FTL pricing by consolidating all of their existing contracts together from multiple locations into a single contract with a lower rate. We did this for FedEx, UPS and USPS
- We analyzed their shipping needs optimized their shipping channels (FTL, LTL, Parcel, Train)
- Significant cost savings were generated by moving lower priority packages from shipping with UPS to USPS
- Select shipments were moved from road to train which is becoming an increasingly cost effective way to ship packages
- We identified that slowing shipping down by 1 day would not impact the customer's business operations, but would reduce the overall shipping expenses by 10%
In total this created a $450,000 annual cost reduction for the company's carrier shipping contracts.
How we negotiated $13M in savings for a financial services firm
Reducing Salesforce contract from $25M to $12M
One of our recent clients was a financial services company with $15B+ in annual revenue and 5,000+ employees.
We worked with the client to:
- Identify current state of contracts across the globe
- Identify key stakeholders within IT and business units that utilized similar software packages
- Coordinate global business units and stakeholder meetings to discuss opportunity, gather feedback and drive results
- Utilize proprietary tools, templates and techniques to assign global roles & responsibilities, action items and negotiation tactics in interest of speaking from one voice
The results:
- $13M+ in client savings
- Negotiated client’s agreement with Salesforce down from $25 million to $12 Million for a 3-year contract
- We also identified additional cost-savings opportunities that benefited multiple business units across their organization
Value Creation ERP and E-Commerce Implementation
ERP & E-Commerce Engagement Overview
One of our clients recently engaged us to source, negotiate, and contract with a 1) Enterprise Resource Planning (ERP) and 2) E-Commerce software platform.
Key Activities
- Identified current state contracts and client-based obligations
- Developed a risk profile of current state contract language against enterprise project plan timelines and dependencies
- Utilized our proprietary decision-matrix framework to drive C-Level decision making
- Advised client on key dependencies to consider throughout the project
- Directly provided hands-on support/representation throughout the entire negotiation and contracting process
The Results (not comprehensive)
- $300K+ Cost Savings
- $275K+ Cost Avoidance
- Milestone billing (vs. T&M)
- Delayed subscription period start, etc.
- Significant contractual risk mitigation
- Intellectual Property Rights
- Eliminated Scope Ambiguity
- Partner vs. Client Responsibilities
- Joint Collaboration Agreements, etc.
- A really happy client
Start with a CIA.
That’s a Client Intake Assessment.
Upload your contract data or schedule a discovery call. If we can’t identify at least a 10%+ from a TNG Right Pricing™ opportunity, we won’t take your money (but we will offer you some free advice!)
