If a supplier pushes auto-renew with a 7% annual uplift, I counter with a 90-day renewal window, 3% cap, and QBR-based performance gates tied to co-marketing commitments. If they balk, I secure mutual termination for convenience and a 30-day cure period to preserve leverage. Anyone else tying renewal rights to partner KPIs rather than just price?
I’ve had good luck adding a 120-day renewal notice with teeth: if they miss it, the deal flips to month‑to‑month at current rates and no “7% annual uplift.” It pairs well with your QBR gates, but some vendors push back to 90 — have you gotten anyone to accept that missing notice voids auto‑renew?
I tie the uplift to execution: if they miss the QBR deliverables (e.g., one joint webinar and a case study by day 270), renewal defaults to 0% instead of your “3% cap,” and the mutual termination-for-convenience with a “30‑day cure” stays intact. Ever tried converting unused co‑marketing funds into renewal credits?
evergreen with a baked‑in 7% drives me nuts — if they push it, I swap to “CPI‑U or 3%, whichever is lower” and require a utilization + roadmap pack 60 days before your 90‑day window; miss it and the uplift freezes with a one‑time 60‑day extension to renegotiate. I also add KPI audit rights so the QBR/co‑marketing claims are provable, and if they demand a floor I’ll only accept 1% in exchange for mutual termination for convenience after a “30‑day cure period.” @OP, have you tried CPI‑based caps like https://www.bls.gov/cpi/?
Example: I pair KPI-based renewal with a simple benchmark rider: “if price > peer median by 5%+, supplier must match or waive uplift,” and make renewal opt-in only when adoption and SLA targets are met. Have you tied uplift to earned service credits instead of rate changes? Benchmarks can get squishy, so I name the data source up front and split fees 50/50 to keep everyone honest.