Trends and Future Outlook in Salesforce Negotiations
Trends and Future Outlook in Salesforce Negotiations examines how the dynamics of Salesforce contract negotiations are evolving and what enterprise buyers can expect going forward.
It covers rising Salesforce pricing (following years of stability), the impact of new product offerings (such as AI add-ons and acquired products) on deal structures, and how current economic conditions are altering negotiation strategies.
This matters now because Salesforce has begun increasing prices and bundling new features (e.g., AI) into deals, meaning CIOs, procurement, and finance leaders must adapt their Salesforce renewal strategy to control costs and mitigate risk in future contracts.
Rising Salesforce Pricing and Its Impact on Negotiations
Insight:
Following a period of stable pricing, Salesforce has begun to significantly raise its list prices. In mid-2023, Salesforce announced an average 9% increase – the first hike in seven years. Another increase of about 6% is slated for August 1, 2025, affecting core cloud products. Even Slack (now owned by Salesforce) saw a 20% price jump for its Business+ plan.
These moves reflect Salesforce’s push to boost revenue and fund innovations, but they create budget pressure for customers. The pricing approach is also changing: Salesforce is justifying higher rates by touting new features (especially AI capabilities) as added value. However, not all customers will fully utilize these features, raising questions about ROI.
Real-World Scenario:
A global manufacturer approaching its Salesforce renewal found that its projected costs were nearly 10% higher year-over-year despite no increase in user count. The Salesforce account team pointed to the updated price list and new “AI-powered” product enhancements as the reason.
The customer, caught off guard, had not budgeted for such a jump. In response, they had to engage in tough negotiations – questioning which new features they needed and pushing back on the price basis.
Salesforce initially held firm, citing industry-wide inflation and its first price rise in years. Ultimately, the customer secured a moderate discount to offset part of the increase, but only after making clear that they would otherwise consider scaling back licenses.
Practical Takeaway: Enterprise buyers should anticipate price increases as the new normal and prepare accordingly. When Salesforce announces list price hikes, don’t assume you must accept them at face value.
In negotiations, cite your historical spend and user adoption to argue for offsets or discounts – Salesforce’s list prices are a starting point and are highly negotiable for large customers. Additionally, negotiate price protection terms: if you sign a multi-year deal, insist on clauses that lock in pricing or cap annual increases (e.g., no more than 0–3% per year).
This guards against sticker shock at renewal. If Salesforce is introducing new features as justification for higher costs, demand the option to pilot those features first or exclude them if they don’t add value.
The key is to avoid being caught unprepared by a sudden cost spike – start internal budgeting and vendor discussions early once you hear about upcoming Salesforce pricing updates.
AI and Bundling Redefine Salesforce Contract Negotiations
Insight:
Salesforce is heavily promoting new products and bundled offerings – especially those infused with artificial intelligence – which is reshaping how deals are structured. For example, Salesforce’s recent “Agentforce” AI add-ons provide generative AI capabilities but at a steep price (starting at $125 per user/month) and are being packaged into premium editions.
Salesforce is retiring older standalone AI options in favor of these bundled AI-centric plans. At the same time, acquisitions such as Slack and Tableau are being integrated into the Salesforce product family, often presented as integral parts of the Customer 360 platform.
The trend is toward bundling multiple products (Sales Cloud, Service Cloud, Slack, analytics, AI, etc.) into one unified proposal. Salesforce pitches this as simplification and better value, but it can complicate negotiations – bundles may obscure the costs of individual components and potentially include products the customer didn’t plan to buy. Analysts warn that these complex bundles risk unexpected cost spikes and confusing renewals if customers aren’t prepared.
In short, Salesforce contract negotiations now frequently involve navigating “take it or leave it” package deals centered on new features, such as AI.
Real-World Scenario:
A multinational retailer reported that during its last renewal, the Salesforce sales team proposed an “all-in-one” Customer 360 bundle, comprising core CRM products, Slack, and an AI add-on, all under a single three-year contract.
The offer touted an attractive overall discount, but the pricing lacked transparency – the retailer couldn’t tell how much they were paying for each piece. Salesforce positioned the bundle as the future of the platform and pressed that buying everything together would ensure the best price. However, the retailer was wary.
In a previous negotiation, they had agreed to a Marketing Cloud package that included far more messaging capacity than they used (resulting in expensive shelfware). Remembering that lesson, they pushed back and requested itemized pricing for each cloud product. The initial bundle quote also assumed a 20% annual growth in licenses – essentially locking them into paying for future expansion upfront.
Feeling the bundle was too bloated, the customer negotiated to remove unused components and got Salesforce to reprice each product separately. They accepted some AI capabilities on a trial basis but refused to be forced into the entire expensive bundle.
Ultimately, the deal was unbundled into a more flexible agreement, allowing the customer to avoid paying for several unwanted extras.
Practical Takeaway:
Be cautious with bundles. If Salesforce presents a big unified deal covering multiple products or new AI features, break it down. Request transparent, line-item pricing for each component, allowing you to see exactly what you’re paying for each product or feature. This prevents a scenario where a “discount” on one part (e.g., core CRM) masks an inflated cost on another (e.g., an AI addon or extra Slack licenses). Only include products you truly need – don’t let the excitement of “latest and greatest” features sway you if they’re not in your roadmap.
If Salesforce is bundling AI into your contract, consider negotiating it as an optional add-on or pilot: for instance, agree to a smaller AI trial with an option to expand later, rather than a ful,l expensive deployment from day one.
Also, be cautious of Salesforce attempting to incorporate assumptions about your growth or usage increases (such as the 20% yearly growth example) – push back so that you pay for actual needs, not overestimated projections.
In summary, approach Salesforce contract negotiation in the era of AI bundles with a fine-tooth comb: insist on clarity, keep flexibility to drop or scale back components, and don’t pay for what you won’t use.
Economic Climate Shaping Salesforce Renewal Strategies
Insight:
The broader economic environment is directly influencing how both customers and Salesforce approach negotiations. In recent years, many enterprises face tightening IT budgets and cost-cutting mandates due to economic uncertainty (e.g., inflation, higher interest rates, or slower growth in their industries).
At the same time, Salesforce has been under pressure from investors to improve its profitability and growth. In early 2023, multiple activist investors urged Salesforce to boost its margins, prompting the company to reduce internal costs and increase revenue from its existing customer base.
This means Salesforce may be less inclined to offer generous discounts without a fight – they are looking to maximize account revenue.
They’ve even increased list prices (as noted) and could start enforcing contract terms that were previously overlooked (for example, some contracts allow Salesforce to raise fees by ~7% annually, a clause that was historically rarely enforced but could now be on the table).
On the flip side, if the economy is weak, Salesforce also worries about customers downsizing or defecting, which can give buyers more leverage. The vendor’s quarter-end or year-end sales targets, especially in a challenging economy, can make them more flexible to close a deal.
In essence, the negotiation climate is influenced by external economic forces: tough economic conditions make customers more price-sensitive and vendors more eager to secure committed revenue.
Real-World Scenario:
Consider a large financial services firm in a year where the market is down and all departments are slashing costs. As its Salesforce renewal approached, the CFO set a mandate to reduce SaaS spend by 15%. The procurement team signaled to Salesforce that the status quo was unaffordable and that they might even consider alternative CRM solutions if needed.
Salesforce, aware of the firm’s importance as a reference customer, had concerns about losing the account or seeing a major downsell. At the same time, Salesforce’s own sales leadership was under end-of-quarter pressure to hit targets. Sensing an opportunity, the customer timed its negotiation for late in Salesforce’s Q4 and hinted at delaying or reducing the renewal.
This economic backdrop led Salesforce to relent on some demands: they dropped a proposed price uplift and extended a larger discount on a multi-year deal than initially offered.
Conversely, in boom times a few years prior, the same firm struggled to get meaningful discounts because its Salesforce representative knew the company had an ample budget and fewer credible alternatives at the time. The contrasting outcomes illustrate how the economic context shifts the balance of power between buyer and seller.
Practical Takeaway: Use economic context to your advantage. If your company is facing budget pressures or if IT spending is scrutinized, be transparent (to a strategic degree) with Salesforce about your constraints – it sets the stage for why you need concessions.
Salesforce would rather retain a customer at a lower revenue than lose them entirely, especially in a downturn. Leverage timing: vendors have critical periods (quarter-end, fiscal year-end) where booking revenue is crucial, and in a soft economy, they will be even more keen to close deals.
Plan your Salesforce renewal strategy around these timelines to maximize negotiation leverage. Also, monitor Salesforce’s financial signals: if the company is missing growth targets or dealing with market skepticism, they may be more flexible to avoid bad news (like customer losses). However, be cautious in good economic times – when companies are spending freely, Salesforce may hold a harder line, knowing that switching costs are high. There’s less organizational pressure to save.
Always align your negotiation approach with the current economic climate: tighten demands and consider alternative options when belts are tight, and insist on locking in favorable terms before conditions improve (and Salesforce potentially becomes stricter). In any economy, doing your homework – e.g., gathering competitive quotes, understanding Salesforce’s quarter cycles – will strengthen your position.
The Shift Toward Multi-Year Commitments and Enterprise Deals
Insight:
A clear trend in Salesforce negotiations is the push toward multi-year commitments and broader enterprise license agreements. Salesforce often incentivizes customers to sign 2- or 3-year contracts (or longer) by offering larger upfront discounts for longer terms. From Salesforce’s perspective, multi-year deals secure future revenue and reduce churn risk, which is particularly attractive when growth is slowing.
Customers are also drawn to multi-year contracts to lock in pricing. For instance, after the recent list price hikes, many enterprises are considering agreements now to avoid the next increase.
However, these long-term deals come with a trade-off: reduced flexibility. Once you commit, you typically cannot reduce your license counts or costs until the end of the term.
Another emerging element is the Salesforce Enterprise Agreement (SELA), or unified contracts that bundle multiple products under a single master agreement. While these can simplify vendor management and sometimes yield a better package deal, they can also introduce “all-or-nothing” risk – if you want to drop a product, it might affect your pricing on others in the bundle.
Additionally, if not carefully negotiated, multi-year contracts might include built-in escalators (e.g., 7–10% price increases in years 2 or 3) or leave you exposed to higher renewal rates later. The future outlook is that Salesforce will continue promoting longer and larger deals, so enterprise buyers need to approach them strategically.
Real-World Scenario:
A European telecom company recounts how Salesforce strongly pushed a 3-year renewal instead of their usual annual renewal. Salesforce dangled a 25% discount if they agreed to three years upfront. The deal sounded great in year 1, but by year 3, the company had undergone restructuring and no longer needed as many Sales Cloud users – yet they were locked into paying for them. Worse, their contract had a 5% per year built-in price uplift after the first year, which the company hadn’t fully noticed in the fine print.
By the final year, the unit price per license was higher, eroding much of the “discount” advantage. On the other hand, another enterprise customer, who negotiated carefully, managed to secure a multi-year contract with price caps and flexibility. They secured a clause allowing for a one-time reduction of licenses (up to 10%) at the end of year 2, if needed, and no automatic price increases during the term.
Practical Takeaway: If you opt for a multi-year Salesforce contract, negotiate it on your terms. First, ensure you forecast your needs accurately – don’t sign up for three years of licenses you might not use. Seek flexibility clauses, such as the right to adjust volumes mid-term or at least the right to drop unused products at renewal without penalty. Negotiate out any automatic uplifts in the later years; a multi-year deal should ideally have fixed per-unit pricing for its duration (or very minimal increases). Salesforce often will agree to this if it means securing a longer commitment – they state that multi-year contracts often come at lower per-user costs, so hold them to that. Also, be mindful of the end of the multi-year term: without price protections, you could face a big hike when it’s time to renew again.
It’s wise to negotiate a renewal price cap or extension option as part of the deal. For example, stipulate that if you renew for a fourth year, the price will not increase by more than a certain percentage. Lastly, for enterprise agreements that bundle products, maintain the ability to swap or drop components as needed. You don’t want a situation where you’re stuck with an underperforming product because it’s tied into a discount for other critical products. In summary, multi-year deals can yield great savings and predictability, but only if you build in safeguards to avoid future pitfalls.
Focus on Value Realization and License Optimization
Insight: With Salesforce costs rising and product portfolios expanding, enterprise customers are increasingly focused on maximizing value and eliminating waste in their contracts. A key trend is rigorous license optimization before and during negotiations. Rather than blindly renewing the same quantities, companies are analyzing usage data to find shelfware – unused or under-utilized licenses and features – and using that knowledge as leverage. Salesforce has recognized this customer mindset and has introduced measures like Flex Credits (launched in 2025) to offer greater flexibility. Flex Credits allow enterprises to convert unused license entitlements into other capabilities (specifically, into AI usage capacity). The idea is to provide a way to repurpose spending on underutilized software toward new features, acknowledging that customers dislike paying for unused software. However, these schemes are new and come with skepticism – will they truly benefit the customer or just encourage the purchase of more AI capacity? At the same time, Salesforce is pitching the “value” of its products more than ever, trying to align pricing with outcomes. For example, Salesforce representatives might now discuss cost per lead or revenue impact to justify the price, rather than just per-user costs. The future outlook is a more value-driven conversation: enterprises will demand to see ROI for every dollar spent on Salesforce, and they will negotiate contract terms that tie into that value (like opt-out clauses if promised outcomes aren’t met, or shorter trial periods for new tech).
Real-World Scenario: An Asia-Pacific manufacturing conglomerate prepared for its Salesforce renewal by conducting a thorough internal audit of all Salesforce usage across its business units. They discovered, for instance, that 15% of their Sales Cloud users hadn’t logged in for over 90 days, and a Marketing Cloud add-on for advanced analytics was being used by the marketing team at a rate of barely 1%. Armed with this data, the company approached Salesforce with a plan: they would right-size their licenses to match actual needs and remove the unused add-ons, expecting a significant cost reduction. Initially, the Salesforce account team resisted the drop in license count (which would lower their contract’s value), instead suggesting the company keep the licenses “just in case” and try out a new AI feature that could utilize them. The customer, however, was firm and used the threat of non-renewal of those licenses as leverage. In the end, Salesforce conceded to eliminate the unused licenses, but as a compromise, offered the company a small pool of Flex Credits to experiment with an AI sales assistant. This way, the customer didn’t pay extra – they simply redirected a portion of the saved cost toward a controlled trial of a new feature. Over the next year, the company closely measured the results of that AI assistant pilot. When Salesforce later attempted to upsell a full Agentforce AI package, the customer had real data to either justify the investment or decline it due to lack of ROI.
Practical Takeaway: Do your homework on usage before every negotiation. Scrutinize how each Salesforce product and license is being used in your organization. Identify unused licenses, redundant functionality, or more cost-effective alternatives for specific features. This data gives you a powerful fact base to negotiate reductions or swaps. Rather than automatically renewing all licenses, tell Salesforce exactly what you will drop if it’s not needed – and follow through if they don’t accommodate you with a fair offer. Consider negotiating for value terms: for example, if Salesforce is eager to sell you an AI add-on, request a pilot period or a pay-for-performance model (perhaps, “if we don’t see X improvement in six months, we can cancel without penalty”).
Contract Terms and Risk Mitigation for the Future
Insight: As Salesforce negotiations become more complex – with higher stakes spend, new tech like AI, and multi-product bundles – the fine print of contract terms is more important than ever. We’re seeing enterprise customers put greater emphasis on risk mitigation clauses in Salesforce contracts. These include things like: explicit caps on future price increases, protections against product deprecation (what if Salesforce replaces or retires a product you’re using?), data privacy and usage terms (especially for AI features that might use your data), and service level agreements (SLAs) with remedies if Salesforce’s services go down or underperform. Salesforce, for its part, will often use its standard MSA (Master Subscription Agreement), which tends to favor them. Future-minded customers are now pushing back on those terms, customizing agreements to safeguard their interests. Analysts recommend demanding transparency on Salesforce’s product roadmap and even AI model governance as part of the negotiation. In essence, the trend is that negotiations are no longer just about price and volume – they’re about contractual safeguards that ensure a fair and predictable partnership with Salesforce over the long term.
Real-World Scenario: A global bank negotiating a Salesforce deal for a new Customer 360 rollout didn’t just focus on the pricing of licenses; they also thoroughly examined the contract terms. Remembering a painful incident with a different vendor, the bank’s procurement team was keen to avoid any “gotchas.” They negotiated an upfront agreement that if Salesforce introduced a new product that replaced a capability they were paying for, the bank would have access to it at no additional cost. They also added a clause stating that if Salesforce’s AI processing of their data ever violated certain compliance requirements, the bank could suspend use without incurring a financial penalty. Moreover, given the mission-critical nature of Salesforce, the bank negotiated enhanced SLAs – if the CRM had outages beyond a certain threshold, Salesforce would provide service credits and a dedicated support response. On Salesforce’s side, some of these terms were not standard, but the vendor agreed to win the large deal (and likely because the customer’s requests were reasonable risk mitigations). Contrast this with another company that treated the Salesforce contract as boilerplate – they later found that at renewal, Salesforce invoked a contract clause allowing a price uplift. Since they hadn’t negotiated it away, they had little recourse. The lesson: those who negotiate contract terms upfront fared significantly better when unforeseen issues (such as product changes, outages, or price revisions) arose.
Practical Takeaway: Don’t treat the Salesforce contract as “paperwork” – it’s a critical part of the negotiation. Identify key risks and document their mitigation strategies. At a minimum, enterprise buyers should negotiate caps on price increases (both during the term and at renewal – e.g., “no more than 5% increase at renewal”). Consider a clause that locks in discount levels for additional purchases, so if you expand usage, you get the same negotiated rate. If you’re adopting new or unproven products (like a new AI feature), build in performance clauses or exit ramps (for example, a one-year term for that add-on, with an option to renew only if it meets expectations). Ensure your data usage rights are clear – if Salesforce’s AI will use your data, can it be stored offshore? Is it aggregated? You may need custom terms to stay compliant with regulations. Additionally, push for transparency obligations: require Salesforce to notify you of significant changes to product strategy or packaging that may impact your deployment. Finally, strengthen the SLA if Salesforce is mission-critical for you. Get commitments on uptime, support response times, and consequences if those commitments aren’t met. Negotiating these terms may take time, but it significantly mitigates risk over the life of the contract. Below is a quick comparison of common contract risks and how to mitigate them:
| Contract Risk | Mitigation Strategy |
|---|---|
| Surprise price hikes at renewal | Multi-year price locks; cap percentage increase in contract; negotiate renewal pricing in advance. |
| Shelfware and unused licenses | Include flex-down rights or swap options; conduct regular usage true-ups and adjust entitlements accordingly. |
| Forced product bundling/lock-in | Insist on modular pricing (separate SKUs); negotiate “swap” rights to replace a product if not used or if a new alternative emerges. |
| Performance or uptime issues | Add enhanced SLA with service credits; include right to terminate or get refund if outages exceed a threshold. |
| Changing technology or compliance risk | Add clauses for new technology (AI) governance – e.g. compliance with data laws, notification of changes; “new product protection” ensuring access to successor products if current ones are retired. |
By embedding these kinds of protections, you transform your Salesforce agreement from a one-sided vendor contract into a balanced partnership document.
This forward-looking approach will pay off as Salesforce’s offerings and pricing evolve in the future.
Recommendations
- Start Early and Plan: Begin your Salesforce negotiation preparations at least 12 months before renewal. Early planning gives you time to audit usage, gather requirements, and engage stakeholders without last-minute pressure.
- Benchmark Aggressively: Leverage external benchmarks and independent pricing data to know what discounts and terms similar enterprises are getting. This arms you with facts to challenge Salesforce’s quotes.
- Prioritize Your Needs: Identify which Salesforce products and features are truly mission-critical vs. nice-to-have. Invest in negotiation capital to secure the best terms for your top priorities, and be willing to walk away from less essential elements.
- Use Competitive Leverage: Even if you don’t intend to switch vendors, evaluate alternative CRM or cloud solutions to stay competitive. Having a credible Plan B (or at least showing that you’re exploring options) strengthens your position when asking Salesforce for concessions.
- Demand Transparency: Insist that Salesforce provides clear, itemized pricing and doesn’t hide costs in bundles. Ask questions about what’s included, and get commitments that you won’t be charged for extras you didn’t explicitly agree to.
- Negotiate Governance and Flexibility: Beyond price, negotiate governance into the contract – e.g., regular executive business reviews, usage reviews, and flexibility to adjust the contract if business needs change. Make Salesforce a long-term partner for your business, delivering ongoing value, not just a hard sell upfront.
- Document Everything: When negotiating, ensure that all promises are in writing, preferably included in the contract or an addendum. Verbal assurances (e.g., “we typically don’t enforce that clause”) mean little later – if it matters, put it in the contract.
- Maintain a United Front: Align IT, procurement, finance, and business unit leaders on your objectives and walk-away points. Salesforce’s sales team often tries to find internal champions to push their agenda; a united front ensures they must address your terms, not end-run around them.
- Learn from Past Deals: Analyze your previous Salesforce contracts for lessons – what clauses caused pain, where did you overcommit, and did you leave value on the table? Use those lessons to drive a tougher, yet smarter, negotiation this time.
- Consider Expert Help: For particularly large or complex Salesforce negotiations, consider bringing in third-party experts or advisors. Firms specializing in software licensing can provide benchmark data, negotiation tactics, and an outside perspective that keeps Salesforce honest.
Checklist: 5 Actions to Take
- Audit Your Current Usage: Collect data on how each Salesforce product is used in your organization. List the number of active users vs. licenses, storage used vs. limits, feature usage, etc. Identify any clear excess (e.g., unused licenses, modules no one uses). This is your fact base.
- Define Your Future Requirements: Engage business owners and IT to forecast what you need from Salesforce for the next term. Will you grow your user base, add a new Cloud (e.g., Marketing, CPQ), or can you scale down? Clarify needs and nice-to-haves – and document what’s not needed.
- Set the Negotiation Strategy: Outline your must-win points (e.g., “No price increase above X”, “We need Premier Support included”, “Remove Y product fees”). Also, decide on your walk-away alternatives (e.g., consider a smaller renewal or alternative vendor for a module if Salesforce won’t budge). Get leadership buy-in on this strategy.
- Engage Salesforce (on Your Terms): Kick off discussions with Salesforce well before the contract ends. Share that you’ve assessed your usage and needs. Present your expectations (volume, budget, key terms) early. Push for an itemized proposal. If their initial quote is too high or inflexible, don’t hesitate to counter with data-backed demands. Keep conversations at a high level until they align with your framework.
- Negotiate and Close Deliberately: When formal negotiations begin, manage the timeline effectively. Use end-of-quarter deadlines to your advantage, but don’t let Salesforce rush you into a subpar deal. Methodically work through pricing, then terms. Each time Salesforce makes a concession, ensure it’s reflected in an updated proposal/contract draft. Before signing, double-check that all agreed terms (discounts, caps, flex rights, etc.) are captured. Only sign when the contract fully meets the negotiated agreement and future-proofs your interests.
FAQ
Q: Are Salesforce’s price increases negotiable, or do we have to accept them?
A: Salesforce’s announced list price increases (e.g., the 2023 and 2025 hikes) set an anchor, but enterprise customers do not have to simply accept them. In practice, everything is negotiable. You can and should push for discounts to offset increases. Many large customers still pay below the list price, even after price hikes, thanks to negotiated discounts and concessions. Use your leverage – volume, strategic importance, timing – to get a better deal than the sticker price.
Q: How can we negotiate Salesforce’s new AI and add-on products?
A: Treat new AI features or add-ons like any other optional component – with healthy skepticism and a demand for value. Request trial periods from Salesforce to test AI solutions (such as Einstein or Agentforce) before committing to a long-term commitment. If they propose an AI bundle, negotiate it as a separate line item that you can drop if it doesn’t deliver results. Always link the cost to clear ROI metrics. It’s also wise to address AI usage terms in the contract (who owns the data, what happens if results are poor, etc.). In short, don’t pay a premium for AI until you’ve validated it in your environment on favorable terms.
Q: What is the best time to negotiate a Salesforce renewal for the most leverage?
A: Ideally, begin talks months in advance, but align detailed negotiations with Salesforce’s end-of-quarter or fiscal year-end if possible. Salesforce has strong sales incentives to close deals by these deadlines, which can make them more flexible on price and terms. For example, engaging in final negotiations in Q4 (typically January for Salesforce, since their fiscal year ends January 31) or even Q3 can yield additional concessions. Just ensure you’ve done your homework beforehand, because waiting until the eleventh hour without preparation could backfire. Early start, late finish (near their deadline) is a common strategy.
Q: Should we consider a multi-year Salesforce contract or renew annually?
A: It depends on your situation. Multi-year deals can provide price stability and larger discounts, which is valuable if you expect consistent usage and want to avoid annual price surprises. However, they also lock you in, so you lose flexibility to downsize or switch solutions for a few years. If your requirements are stable and the discount is significant, a multi-year contract can be worthwhile – provided you negotiate out any hidden escalations and include adequate protections. If your business or the technology is in flux, a one-year term with annual negotiations might be safer despite being a bit more work each year. Sometimes, a middle ground is a 2-year deal with an option to extend, giving a balance of discount and flexibility.
Q: What can we do if we discover we overbought Salesforce products (shelfware)?
A: First, quantify it – determine how much value of licenses or features is underused. Then, bring this up in your negotiation with Salesforce. You have a few options: negotiate to remove or reduce those licenses in the new contract (preferred if possible), or ask to swap their value towards something more useful (for example, converting unused parts of Marketing Cloud spend into additional Sales Cloud users or vice versa). The recently introduced Flex Credits system is one way Salesforce is addressing this; it may allow you to repurpose some unused software spend into other areas, such as AI credits. The key is not to continue paying for shelfware. If Salesforce is resistant to reducing licenses (they often are), use it to get other concessions (“Okay, we’ll keep these 50 unused licenses for now, but you need to give us a bigger discount on them or throw in Premier Support for free”). Always plan to correct course at the next renewal by aligning your purchase with actual usage.
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