A large health insurance company was renewing support on existing software and upgrading that software for Office365 compatibility. Seems simple enough. However, the initial quote from the vendor for the upgrade was over $150,000. While this may seem like a drop in the bucket compared to some bigger software contracts, the client knew they could still achieve significant savings.



Upgrade the software for Office365 compatibility for a reasonable price.



Based on intel from negotiating similar upgrades, Seprio knew the initial proposal from the vendor was outrageous. The vendor simply expected the client to pay the $150,000 rather than spend time in negotiations. However, the team stood firm and let the vendor know the price was unacceptable and that the client would not upgrade for that price or any other unreasonable price.



The client ended up paying $20,000 for the upgrade, originally priced at $150,000! When combined with the implementation fee the total cost to the client was $44,000. Additionally, this let the vendor know they can’t nickel and dime the client on future agreements. Moral of the story: A relatively small price tag still has some room for negotiating significant savings.