2008 the year of renegotiating long term contracts

If you are in a long term contract, or about to enter one, think about reopening pricing. A few things:
1) retainer companies are losing clients as clients take a closer look at overhead
2) with the emergence of startup activity in 06-07 and outsourcing overseas, there is a lot of price competition in the service industry
3) you’d be surprised what a company with high fixed costs (ie staff) is willing to do to keep some semblance of a retainer

I signed a 12 month contract with webex.com because I just assumed the sales rep was selling me the right sized product. Turns out they had a cheaper product available online that the rep was not allowed to sell on the phone. I am trying to cancel the contract, and they are trying to keep me as a client. The conversation has been fascinating.

I’m not saying to try to nickel and dime your outsourced firms because they need to survive, too. But all is fair when you simply do your homework on what the current environment is yielding. Your partners need to stay competitive, and you shouldn’t be funding their other clients who may be getting a better deal.