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10 ways to beat SAP at the bargaining table

Chris Kanaracus | Nov. 15, 2011
It's crunch time for SAP customers and salespeople around the world, as many new software deals and contract renewals get hammered out in the fourth quarter in time to be booked before the end of the company's fiscal year.

Customers should gird themselves against such pressures, since even heavy discounts offered by an eager salesman on a new product won't make up for those hefty annual maintenance payments over time.

Still, "if you have money to buy new software it makes sense to jump in on the beta because you can shape the product, despite the headaches," Wang said.

In addition, SAP wants to showcase successful early customers of its new products and accordingly, it helps them out with services. Beta users can also gain favorable pricing terms, Wang said.

9. Have heart-to-heart talks with SAP

A strong relationship with SAP has to go beyond yearly contract talks. Customers would be wise to line up "strategic alignment" meetings between their own executives and their peers at SAP, Jones wrote. "Not only will this help clarify stakeholders' opinion of SAP, it will also enhance SAP's opinion of you as a potential enabler rather than merely a negotiation adversary."

10. Get ready for next year

It's important for customers to get a real handle on how important SAP is to the business overall, according to Jones. He cited the example of a consumer goods company that used SAP as its main set of back-office applications but hardly had any SAP running at all in remote offices. "Getting clear consensus on SAP's role enabled the commercial team to define appropriate negotiation strategies for the future," he said.

 

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