Congratulations, you’ve gone through the process of selecting the perfect learning management system vendor for your learning and development organization! All that stands between you and that beautiful piece of learning technology is the vendor contract, and the associated price tag.
During one of my conference sessions this year, I was asked whether it’s possible to negotiate the price of an LMS. And the answer is – absolutely you can! Buying technology is somewhat similar to buying a car. It’s a big investment, and you can negotiate many elements of the contract with your vendor, particularly the cost.
As the video states, it’s important to know exactly what you are paying for. If the vendor gives you a “lump sum” for your three-year contract, have them break it out so you see the line items that contribute to the overall cost. You may be able to strike features and services you don’t need, or negotiate a lower cost for some of the line items. Also discuss payment schedules. Can you get a lower overall price if you pay more up front, for example?
Most importantly, don’t be afraid to ask questions and propose changes to the contract! It’s a critical part of your LMS selection process, and your learning technology vendor should be willing to collaborate with you. Contract negotiation is the exciting last step of your LMS selection process, and it signals the beginning of your LMS implementation!