Why auto-renewals cost more than they should
Many business agreements include an automatic renewal clause, sometimes called an "evergreen" clause. If nobody gives notice in time, the contract rolls into a new term, often at the same rates you signed years ago, or higher. Meanwhile, new customers are offered better pricing for the same service.
The catch is the notice window. Many contracts require written notice 30 to 90 days before the end date. Miss it and you may be locked in for another full term.
The checklist
- Find the end date and the notice window. Search the agreement for "auto-renew", "evergreen", "renewal term" and "notice". Write down the exact date notice is due.
- Set a reminder well ahead. About 120 days before the end date gives you time to compare options without rushing. Our free renewal reminder can do this for you.
- List what you actually use. Lines, seats, circuits and features. Things nobody uses are the easiest savings.
- Check your invoices against the contract. Pull a few recent bills and compare them to the rates you agreed to. Billing errors are more common than most people think.
- Get real alternatives, even if you plan to stay. A credible option from another provider is the strongest leverage you have with your current one.
- Choose the term that fits your plans. One year or five, it should be your call. Longer terms can lower the price, but only make sense if you're confident about where the business is headed.
- Send notice in writing before the window closes. Even if you're still negotiating. Check the contract for exactly how notice has to be delivered.
Staying can be the right answer
Sometimes the provider you have is still the right fit. The point isn't to switch, it's to decide on purpose. If you stay, you should stay on current pricing and terms that suit you.
How we help
We'll benchmark your current pricing, line up alternatives that truly fit and handle the negotiation, at no cost to you. Providers pay us the same whichever one you choose, so we have no reason to push a switch.