Salesforce Trial Discounts: What’s Negotiable

Salesforce Trial Discounts: What’s Negotiable

• Extended trial duration
• Discounts for first-year subscription
• Flexible payment terms
• Bundled add-ons for free
• Waived onboarding or support fees
• Custom pricing based on usage

Timing Is Everything

When it comes to negotiating discounts, timing can be your best friend. Salesforce’s fiscal year ends on January 31st, and their quarter-end periods are also key negotiation windows.

Sales teams are under pressure to meet targets at these times, which makes them more open to discussions on pricing.

Key Times to Negotiate:

• Fiscal Year-End (January 31st): This is a high-pressure time for sales reps as they work to close out their annual numbers. Discounts are often easier to secure in this period.
• Quarter-End Periods: The end of each quarter is also critical, as sales reps aim to meet quotas.
• After Quarterly Earnings Announcements: The time following earnings announcements can also provide leverage, as the company focuses on showcasing strong customer acquisition numbers.

By aligning your negotiations with these key times, you can put yourself in a stronger position to ask for better deals.

Volume and Commitment Matter

Salesforce tends to reward customers who commit more extensively. For example, demonstrating a willingness to commit to longer contract terms or purchasing licenses in bulk can lead to deeper discounts.

Opportunities for Discounts Include:

• Multi-Year Contracts: Committing to multi-year agreements can often result in better pricing and more significant discounts. If you can commit to licenses upfront—even if they’re not immediately needed—Salesforce is more likely to offer discounts.
• Bundle Opportunities: If planning a growth phase, consider bundling multiple licenses. Negotiating bundles of 5-10 licenses can qualify you for “growth-license” discounts. For enterprises with multiple departments adopting Salesforce, consolidating these into one large purchase can yield considerable savings.

Product Flexibility

One of the attractive features of Salesforce contracts is their flexibility in handling different products. This flexibility can be leveraged to your advantage:

• Product Switches: Salesforce allows product switching while maintaining the same overall contract value. If you initially buy licenses for one feature but later realize it’s unnecessary, you can switch to another product without increasing the contract cost.
• Reallocation of Licenses: Licenses can be reassigned to different products, which is valuable if your company’s priorities change.
• Replace Unused Products: At renewal time, unused products can be swapped out for other, more relevant tools without incurring extra costs.

These options provide room for negotiation to ensure you’re getting the best possible value based on your company’s evolving needs.

Support and Add-On Negotiations

Salesforce offers different levels of support plans, often trying to push customers towards higher-tier packages known as Success Plans.

These, however, can be negotiable.

Negotiation Strategies for Support Plans:

• Question the Necessity: If you don’t need the premium support package, don’t hesitate to push back. Many companies find they can make do with lower-tier support options.
• Negotiate Add-Ons: Sometimes, you can negotiate to include support as part of the overall package—even securing free licenses for your power users as a value-add.

Additional Considerations for Support Plans:

• Customized Support Options: Salesforce may be willing to offer a customized support package tailored to your specific needs. For instance, if only a subset of your users requires premium support, you could negotiate a partial premium support plan rather than covering all users. This can lead to significant savings.
• Alternative Support Providers: Remember to explore third-party support options. Several certified Salesforce partners offer lower-cost support, which you can use as leverage during negotiations. These third-party services often provide similar, if not superior, support levels at a fraction of the cost.
• Success Plan Negotiations: Salesforce sales reps often consider the Success Plan a non-negotiable item. However, by demonstrating your internal capabilities or third-party support arrangements, you can negotiate the Plan’s cost or remove it altogether.

Advanced Negotiation Tactics

It’s important to take a more strategic approach to get the best deal. Here are some advanced tactics that can help.

1. Data-Driven Approach

Salesforce is more inclined to negotiate when you present them with data. Consider documenting your historical usage patterns and usage forecasts:

• Historical Usage: Document how much of Salesforce’s functionality you have actually used, and bring up any underutilized features.
• Projected Growth: Present growth projections that demonstrate realistic future use. This helps counter any overestimated usage Salesforce may have pitched initially.
• Licenses and Actual Utilization: Break down the specific licenses you have and map these against actual utilization. If you identify licenses that have consistently been underutilized, you can either downgrade or negotiate additional value for these licenses.

2. Competitive Leverage

Gathering competitive bids from other CRM vendors, such as HubSpot, Microsoft Dynamics, or Zoho, can be a powerful tool. The competition for CRM solutions is fierce, and Salesforce knows it.

• Competitive Bids: Get quotes from alternative CRM providers. These can be used to demonstrate that you have options and to push Salesforce towards a better deal.
• Research Market Alternatives. Knowing the strengths and weaknesses of different CRM solutions will help you make better-informed demands during negotiations.
• Benchmarking Against Competitors: Leverage your research on the standard pricing and discount rates offered by Salesforce competitors. Having a sense of industry benchmarks can give you the upper hand in understanding a reasonable ask and what might be pushing beyond the norms.

3. Negotiating Across Multiple Products

If you are using several Salesforce products—such as Sales Cloud, Marketing Cloud, or Service Cloud—you should leverage your position across these multiple products to secure better discounts.

• Bundle Products for Discounts: Request a discount for bundling multiple Salesforce products. Often, Salesforce provides greater flexibility when customers commit to using several solutions.
• Unified Discount Strategy: Work towards negotiating a unified discount across all products to maintain consistent pricing as you grow your use of Salesforce solutions.

Price Protection and Contract Terms

To avoid price increases in the future, you can negotiate clauses in your contract to lock down certain pricing elements.

Price Protection Strategies:

• Cap on Price Increases: Ensure your contract includes a clause limiting future price increases. This will ensure predictability and protect you from unexpected cost spikes.
• Unified Price Protection: Aim to secure unified price protection across different Salesforce products you use. This ensures consistency in your future costs.
• Flexibility Clauses: Where possible, include flexibility clauses for adjusting the licenses quarterly based on your changing needs.
• Future Pricing Reviews: Propose quarterly or annual pricing reviews to reassess costs. Including a provision for such reviews can ensure that your pricing remains aligned with your usage and any changes in Salesforce’s pricing models.

Negotiating Favorable Terms:

• Pre-Agreed Rate Increase Caps: It’s not unusual for Salesforce to attempt rate increases during renewal. Including a pre-agreed cap on these increases can shield you from unexpected financial exposure.
• Extended Rate Locks for Renewals: To ensure stability in the cost structure, it is also a good strategy to lock in the current rate for an extended period, such as three years or more.

Usage Optimization

Optimizing how you use Salesforce licenses before negotiating can lead to substantial cost reductions.

Conduct a detailed audit of your Salesforce instance.

License Optimization Tips:

• Audit Your Usage: Analyze which features are being used and which are not. Identifying underused premium features can help you negotiate better terms or downgrades.
• Identify Seasonal Patterns: If your business usage varies seasonally, document these patterns and consider negotiating terms that accommodate such fluctuations.
• Reduce Inactive Licenses: Often, licenses are left active for users who no longer need them. Identifying and eliminating these can lead to significant savings.
• Role-Based License Allocation: Instead of assigning full-featured licenses to every user, consider role-based license allocation. For example, power users may need full access, while casual users might only need limited features, which can reduce your total cost.
• Feature Downgrade Analysis: Sometimes, Salesforce licenses come bundled with features your team doesn’t need. Analyze whether all the premium features are necessary and consider downgrading those licenses that aren’t fully utilized.
• Internal User Categorization: Separate users into categories based on their usage needs. For instance, users can be categorized into light, moderate, and heavy users. This segmentation helps ensure each user has only the license type that fits their usage level, thus avoiding unnecessary expenditure on premium licenses for users who don’t need them.

Collaborate with Department Heads:

• Department-Wise Usage Assessment: Collaborate with department heads to understand their teams’ exact Salesforce usage. This assessment helps plan license needs more accurately, avoiding over-purchasing and reducing costs.
• Shared License Pools: Consider creating shared license pools for teams that do not need continuous access. For instance, seasonal teams or departments with shifting resource needs could share licenses instead of each user having a dedicated license.

Aligning With Salesforce’s Fiscal Calendar

Salesforce’s fiscal calendar creates natural pressure points that can benefit you.

Strategic Timing for Negotiations:

• Start Early: Begin negotiations six months before renewal. This will allow you to prepare thoroughly and exert less last-minute pressure on yourself.
• Leverage Fiscal Year-End: Major purchases should coincide with Salesforce’s fiscal year-end or quarter-end. This is when reps are most willing to offer discounts.
• End-of-Month Pushes: In addition to fiscal year and quarter ends, the end of any month can also create opportunities. Salesforce reps are often pressured to close deals to meet their monthly targets, which could lead to a better offer.

Building Your Negotiation Leverage

Having strong documentation can build leverage in negotiations.

Key Documents to Prepare:

• Usage Analytics: Prepare a detailed breakdown of your current and past usage to show what value you’re getting from Salesforce.
• Growth Forecasts: Outline your growth trajectory to show where you may need more licenses and, more importantly, where you do not.
• Competitive Discounts: Research industry-standard discounts and Salesforce’s market positioning to understand what is reasonable to request.
• Budget Constraints Documentation: Sometimes, simply showing that your budget is tight can yield concessions from Salesforce. A realistic overview of your financials might convince them to offer better terms.
• Expansion Plans: If you have expansion plans, communicate them clearly but link these plans to discount requirements. For example, indicate that you plan to roll out additional Salesforce modules or extend use to new departments, but only if favorable pricing is extended.

Preparing a Strong Business Case:

• ROI Focus: Build a strong business case focusing on the ROI you expect from Salesforce. Reps are more willing to negotiate if they understand how their product is integral to your business success.
• Benchmarking Data: Collect data on similar organizations and their Salesforce expenditures. If you can show that other companies of your size are paying less for similar services, Salesforce is more likely to agree to a discount.

Implementation and Support Considerations

Often, Salesforce deals involve more than just software—you might also need an implementation partner to get your solution off the ground.

Implementation Partners:

• Compare Partners: Compare quotes from multiple implementation partners to ensure you get the best deal. Salesforce-approved partners can be costly, and sometimes third-party providers are a better fit.
• Negotiate Implementation Costs Separately: When negotiating a Salesforce deal, separate out implementation costs from the software cost. You may have more flexibility to lower these costs.
• Consider Third-Party Support: If Salesforce’s support costs are too high, you can also consider third-party options, which are often more affordable and provide equivalent value.

Additional Implementation Considerations:

• Fixed-Price Implementation Contracts: Seek fixed-price implementation contracts to avoid potential cost overruns that are common with variable pricing.
• Use Pre-Negotiated Rates: If you’ve worked with a particular implementation partner previously, consider negotiating pre-set rates for Salesforce projects. This familiarity can lead to better pricing due to established trust.
• Staggered Implementation: Depending on the complexity of your Salesforce environment, you may benefit from a phased implementation rather than an all-at-once approach. Staggering implementation can allow you to allocate budget resources more effectively over time, possibly leading to negotiation leverage with Salesforce.

Support Levels:

• Evaluate Support Tier Requirements: Salesforce offers multiple support tiers, and not all of them may be necessary. Carefully evaluate what your organization truly needs in terms of support and negotiate accordingly.
• Third-Party Support Alternatives: Similar to implementation, certified partners provide ongoing support for Salesforce. Using a third party for support can also help drive down total costs compared to Salesforce’s direct support plans.
• Negotiate Support Costs Independently: Negotiating support costs separately from license costs can sometimes yield better results. The flexibility of adjusting support based on actual demand ensures that you only pay for the support level you truly need.

FAQs: Salesforce Trial Discounts: What’s Negotiable

What’s typically negotiable in a Salesforce trial?
During a Salesforce trial, businesses can negotiate extended trial periods, discounts on the first-year subscription, waived onboarding fees, and access to additional features or add-ons. For example, you might ask for Marketing Cloud features to be included while testing Sales Cloud.

Can I get a longer trial period to evaluate the platform?
Yes, Salesforce often extends trial periods for potential long-term clients. If your organization needs more time to test integrations or specific use cases, explain your reasons and request an extension. Companies testing enterprise solutions usually find this request granted.

Is it possible to get discounts on subscription fees?
Discounts are possible, especially if you’re committing to a multi-year contract or a large user base. For instance, agreeing to a two-year term upfront may lower the cost per user from $100 to $85 per month.

How can onboarding fees be waived or reduced?
Waiving onboarding fees often depend on your organization’s potential as a customer. To strengthen your case, highlight future growth plans or a large user base. A small business onboarding 100 users may find this fee negotiable.

Are premium features included in trial periods?
Salesforce is open to including premium features temporarily for evaluation. For example, if you’re trialing Service Cloud, request Einstein AI for free to understand its value during testing.

Can Salesforce offer flexible payment terms?
Yes, flexible payment schedules are often negotiable. If paying annually upfront is challenging, you can ask for quarterly or monthly payment plans to ease cash flow concerns.

Is it possible to negotiate a bundle of multiple Salesforce products?
Salesforce encourages bundling, which can reduce costs. For instance, combining Sales Cloud and Service Cloud may result in a discount compared to purchasing them separately.

Can I leverage competitor pricing to negotiate better terms?
Absolutely. Presenting quotes from competitors like Microsoft Dynamics or HubSpot can encourage Salesforce to offer better pricing or added benefits. However, always ensure that the competitors’ offerings are comparable to Salesforce’s.

Does Salesforce offer unique benefits to startups or small businesses?
Yes, startups can access tailored pricing through Salesforce’s Accelerate program or similar initiatives. These often include discounted licenses, extended trials, and free training sessions.

What can nonprofits negotiate during trials?
Nonprofits have significant leverage, as Salesforce supports them through its Power of Us program. This typically includes ten free licenses and substantial discounts on additional licenses or products.

How does user volume impact negotiation potential?
The larger your user base, the better your negotiating position. For example, businesses purchasing 500 licenses can secure much lower per-user pricing than those needing just 10.

Are training and support services negotiable during the trial?
You can request free or discounted training and support as part of the trial negotiation. This helps your team get started without additional costs.

What if I need more time after the trial ends?
Salesforce often grants extensions or grace periods, especially if you’re actively evaluating the platform. A common ask is for two additional weeks to finalize internal approvals.

Can future upgrades be negotiated during the trial?
Discussing future needs during the trial can lock in favorable terms for upgrades. For instance, if you plan to scale from 50 users to 100 within a year, ask for a commitment to apply current discounts to the expansion.

Do enterprise clients have better negotiation opportunities?
Enterprise clients often receive custom pricing, dedicated account managers, and greater flexibility. If your company falls into this category, emphasize your organizational scale and future growth projections.