Commercial
How to protect margin in contract renewals
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Many B2B companies struggle to protect margin when contracts come up for renewal. This video shares insights on how proactive planning and clear value documentation can shift negotiations from pure price talk to value focused dialogue, helping teams secure stronger outcomes.
Understanding the renegotiation challenge
Many companies lose margin during contract renewals due to late engagement and aggressive price pressure from competitors and procurement. The video outlines why sales teams often enter negotiations unprepared and how this reactive approach limits their ability to influence outcomes.
Why a new approach is needed
Procurement defaults to price when suppliers fail to present clear value. By documenting and communicating delivered benefits early in the contract period, companies can strengthen their position and avoid unnecessary discounts. This proactive mindset also prevents last minute upgrades that rarely shift procurement priorities.
A framework for better renewals
The solution highlights three components. Start renegotiation planning from the moment the contract begins. Build solid evidence of the value created throughout the partnership. And ensure leadership actively coaches account teams to focus on winning renewals with the same discipline as acquiring new customers.