Womeninsales

SAE (Senior Account Executive)

Renewals... 10%, 7% or 5%?

Hey everyone-

I am working on adding in a standard increase on renewals...(inflation, cost of software increase, updates, etc.)

What is the norm we are seeing this year? I have been doing 7 percent, but I was wondering what most AEs who do renewals/upsells are doing or what Account Managers on here are doing.

Also, when you go into these conversations, and someone is asking why there is an increase, what are you saying that works well?

Thanks!

😁 renewals

😍 upsell

😜 contracts

17 comments

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CuriousFox

WR Officer

🦊

What works is the truth. Everyone knows you ain't lying. 🤷‍♀️

TennisandSales

Politicker

Head Of Sales

yes just tell the truth. trying to make some excuse never works

Womeninsales

Good Citizen

SAE (Senior Account Executive)

I am always honest so that’s a given.

SaaSam

Politicker

Account Executive

We constantly evaluate our costs when it comes to renewals and increase by an equal amount. Very transparent about it and haven't had any issues.

Notmyrealname

Politicker

THIS. If you can't honestly point to why you're price needs to increase, then it doesn't need to increase. Remember that your competitors have new biz AEs who are authorised to sell at a discount to win your customers.

DungeonsNDemos

Big Shot

Rolling 20's all day

What's your messaging around increases?

SaaSam

Politicker

Account Executive

We're up front from the beginning that when it comes time for renewals, we evaluate our costs to see if a price increase is warranted. Never any surprises over here.

boredAnti

Tycoon

That One Guy

Tell them straight up why and what it will be.

Kosta_Konfucius

Politicker

ERP Sales

we are 5%

tightlines

Tycoon

Account Executive

7% is what I’ve been seeing with some 10%

But straight up is best!

Diablo

Politicker

Sr. AE

GDO

Politicker

BDM

Last few years we did 7,9,7,10 at one of our orgs. Now we’re back at par with the competitors

Womeninsales

Good Citizen

SAE (Senior Account Executive)

And par with competitors is what?

jefe

Arsonist

🍁

5% for single year, 10% for multi.. Keep the numbers round like that.

And listen to @CuriousFoxand just tell the truth

CuriousFox

WR Officer

🦊

A simple yet effective concept.

SirAlex

Valued Contributor

Account Executive

It depends on the term of previous contract. If it was a 3 yr contract, I typically say 10-15% and fall in around 12%. On a one year, as others have stated, around 5%.

Womeninsales

Good Citizen

SAE (Senior Account Executive)

Thanks this makes a lot of sense