Slack serves as a powerful collaboration platform that offers a faster and more efficient way for teams to communicate. It plays a crucial role in streamlining workflows, enhancing productivity, and fostering collaboration across the entire organization. This blog aims to help you understand the appropriate price you should pay for Slack Business+, whether it's possible to negotiate a discount, and how to get your quote approved by your CFO. We will also explore strategies and tips for reducing your SaaS costs with Hudled.
Understanding Slack pricing is essential for evaluating whether the platform is a good fit for your organization. Slack offers four main plans, each catering to different needs and budgets:
Slack's billing is based on active users, ensuring that you only pay for the users who actively sign in and use the platform. This approach allows organizations to better manage their subscription costs and avoid overspending.
There are several discount paths available for organizations looking to reduce their Slack Business+ subscription costs. These discounts can make the platform more accessible and affordable for different types of organizations, from startups to non-profits.
Standard discounts: Slack offers a 17% discount on the Pro plan for organizations that commit to an annual subscription. This standard discount can help companies save on their Slack subscription costs, making the platform more budget-friendly.
Negotiated discounts: For Business+ plans, you can typically negotiate a 5-15% discount directly through your sales representative. If you're looking to unlock discounts of up to 50%, you'll need to be purchasing hundreds of licenses or have sign-off from a high-ranking executive such as the CRO. For more information on negotiation strategies, you can request access to Hudled's Slack pricing benchmarks.
Startup discounts: Slack has run various startup offers where new users can get 50% off a paid plan in the first year. However, startups don't typically purchase Business+ plans, so this offer may not apply to all companies.
Non-for-profit discounts: Slack offers special discounts for non-profit organizations, ranging from 20% to 50%. These discounts can make Slack more accessible to organizations with limited budgets, enabling them to benefit from the platform's powerful collaboration features.
Negotiating a discount on your Slack Business+ subscription can help your organization save on costs. Here are some strategies to improve your chances of securing a discount:
Commit to increase volume: Give confidence to the sales rep that your account is high value. If you can commit to increasing your ACV by 5-20% in year 2 and 3, the liklihood of unlocking higher discounts increases materially.
Timing of negotiations: Starting your negotiations at the end of the financial year, quarter, or month can increase your chances of getting a higher discount. Utilize the urgency factor and try to close the deal faster to improve the deal terms.
Show benchmarking data using Hudled's pricing benchmarks: Leverage Hudled's pricing benchmarks to show you have the best price for Slack and have evaluated other competitors using strategies such as a Request for Proposal (RFP). This information can give your internal stakeholders confidence that you've done your research and are making an informed decision regarding your Slack subscription.
Build a strong relationship with your sales rep: Developing a mutually beneficial partnership with your Slack sales representative can lead to better pricing and ongoing support. A strong relationship can help you negotiate more effectively and secure a favorable discount on your subscription.
Convincing your CFO to invest in Slack Business+ can be challenging, but with the right approach, you can demonstrate its value and potential impact on your business. Here are some strategies to help you gain approval:
Present a comprehensive cost-benefit analysis: Outline the costs associated with Slack, such as subscription fees and onboarding expenses, alongside the expected benefits and potential return on investment (ROI). A well-presented cost-benefit analysis can help your CFO understand the financial implications and the value of investing in Slack.
Demonstrate ROI and potential impact on business growth: Highlight Slack's role in improving operational efficiency and enhancing communication within the company. Provide concrete examples and case studies, if possible, to illustrate how the platform has positively impacted businesses like yours.
Show benchmarking data: Leverage Hudled's Slack pricing benchmarks to show you have the best price for Slack and have evaluated other competitors like Microsoft Teams. Sharing this information with your internal stakeholders will give them confidence that you've done your research and are making an informed decision regarding your Slack subscription.
Slack is just one of many tools that a company may use. Unfortunately, it's difficult to track who is using what. SaaS management is often overlooked because determining the return on investment (ROI) on your time is challenging. Luckily, Hudled can simplify this process without the overhead.
Reducing your SaaS costs goes beyond just negotiating a discount on Slack. With Hudled, you can track, manage, and optimize your entire software subscription portfolio from a single dashboard. If you want to find out where you're overspending and streamline your SaaS management process, get started with Hudled for free and request a SaaS audit.