This year more than ever, Thomson is approaching firms with 3, 4 or 5 year extensions in return for 0% or 1% increase. The messaging, “Extend now because your contract pricing is so good; you won’t be able to get these great pricing and terms when your contract is up.”
This is a red flag. If there is an offer for 0% or 1% increase, consider whether your current contract pricing and terms are fairly priced. If your firm or organization has not had a price adjustment since 2008, it is likely you are overpaying.
If indeed your pricing and terms were good in the eyes of the vendor, then it is likely they would wait and offer the standard 3% to 5% increase.
Consider having your contracts benchmarked by Feit Consulting to ensure best pricing and terms. Confidence in your pricing adds great value to the bottom line. Click here to connect with Feit about benchmarking your contracts this week.