CRMs are Expensive: Here's your Guide to Successfully Negotiate with Them

I remember the first time it happened. Late 2023 or maybe early 2024. I was on a call with a finance leader at a growth-stage SaaS company and we were talking through their CRM renewal strategy.

Naturally, I was making the case for engaging early. Six months out, get ahead of auto-renewals, run a utilization audit, and explore alternatives. What I believe needs to be standard best practice.

But then he said something I didn’t expect. He said, “Yeah, that makes sense, but honestly I’m not sure we’re going to renew.”

At first, I thought he was joking. Not renewing? Really? But he wasn’t. And that moment stuck with me. Not because it was dramatic, but because it was different.

Here was a company that wasn’t just pushing for a better rate. They were rethinking whether the system they’d been building on for years was still the right foundation. And over the months that followed, I started to hear versions of that same conversation again and again.

Now, let me be clear: this wasn’t some great CRM exodus. But it was a shift. A realization that CRM renewals aren’t set in stone. And they shouldn’t be treated like they are.

Because today, you have options. The CRM landscape has evolved. So have your tools, your team, your go-to-market model. What used to be a rubber-stamped renewal is now a moment to pause, assess, and re-architect if needed.

At Tropic, we’ve helped hundreds of companies do just that — not just negotiate better CRM contracts, but approach them with the strategic rigor they deserve. 

What follows is the playbook we believe every finance and procurement leader should have before their next CRM renewal hits their inbox.

First, a Reframe: CRMs Aren’t Just Software

Before we talk tactics, we need to reset how we think about your CRM investment.

Your CRM isn't just sales software. It's your go-to-market backbone:

• It's where marketing tracks campaign performance
• It's where sales builds pipeline and closes deals
• It's where customer success manages relationships
• It's where executives get the data they need for reporting
• It's where revenue forecasts live or die

When you "just renew what we had last year," you're not making a software decision, you're making a go-to-market infrastructure bet that will shape how your revenue team operates for years to come.

The stakes are higher than price-per-user. The question isn't "Can we get 10% off?" It's "Is this still the system our team should be building on?"

This reframe changes everything about how you approach CRM renewals. The conversation shifts from tactical (how do we pay less?) to strategic (how do we get more value?).

The CRM Market Isn’t a Monopoly Anymore

The landscape shift means you have more viable options than the last time you evaluated CRMs. This competitive pressure can be leveraged even if you ultimately plan to stay with your current vendor. 

Salesforce is still dominant no question. Around 62% of Tropic’s customers use it in some form. But it’s no longer the default for everyone, and it shouldn’t be treated like one.

• HubSpot has rapidly grown in the SMB and mid-market with faster onboarding, integrated marketing, and more transparent pricing
  
• Zoho is gaining share in companies with 100–250 employees, especially internationally
  
• New players like Apollo are bundling CRM + sales intelligence in a single platform, and Pipedrive is expanding as well

The competitive pressure has also changed how vendors structure agreements:

• Contract Length Variations: Salesforce agreements now average 23 months, while HubSpot trends toward 17 months and Zoho around 12 months.
• Pricing Model Evolution: Many vendors now offer usage-based components alongside traditional seat licenses, creating both opportunities and risks.
• AI Integration: Every major CRM now offers AI capabilities and are launching conversation intelligence, forecasting tools, and automation modules that encroach on what used to be separate line items. Sometimes that creates value. Sometimes it creates overlap.

This is your chance to rethink your CRM’s role in your GTM stack. Ask:

• Do we want a single platform to rule everything?
  
• Or are we better off stitching together best-in-class tools?
  
• What systems are we already paying for that duplicate CRM functionality?
  
• Which integrations are working and which are technical debt?
• How many licenses do we really need? 

You don’t have to switch to get leverage. But you do have to ask what’s changed since you signed that last contract.

These are the exact questions smart finance and procurement leaders are asking before their next CRM renewal shows up.

Because the real leverage isn’t in the discount. It's in the decision-making upstream of the contract. Once you start thinking like that, the renewal stops being a rubber stamp and starts becoming a strategic inflection point.

Insight: The traditional wisdom that "you start with HubSpot, then graduate to Salesforce as you grow" is becoming outdated. Some mature companies are finding that HubSpot's expanded enterprise capabilities now meet their needs at a fraction of Salesforce's cost. The competitive landscape also varies by industry and company size. Real estate firms, for example, often encounter a "long tail" of CRM options that aren't as visible in other sectors. This industry-specific fragmentation creates additional leverage points for procurement teams willing to explore alternatives.

The Platform Decision: All-in-one or Best-of-Breed? 

One of the most consequential strategic decisions is whether to pursue an all-in-one CRM platform or a "best-of-breed" approach using specialized point solutions.

The platform approach promises integration, consistent data, and simplified procurement. The point solution approach offers best-in-class capabilities for specific functions at the cost of potential integration challenges.

What many teams miss is that this isn't just a technical decision, it's a financial one with implications far beyond the initial contract:

The Total Cost of Ownership factors often overlooked:

1. Admin Costs: Full-time Salesforce admins earn $100K+ annually
2. Integration Maintenance: API connections require ongoing management
3. Training & Enablement: Complex platforms require more training resources
4. Technical Debt: Over-customized CRMs become difficult to update or replace
5. Opportunity Cost: Budget allocated to CRM is unavailable for other investments

This is where many companies go wrong — focusing exclusively on per-seat costs while ignoring the operational expenses that often dwarf the license fees.

The platform decision should reflect your organizational reality. A complex, highly customizable platform like Salesforce makes sense for organizations with dedicated admin resources and complex processes. A more streamlined solution might be better for teams that need simplicity and can't invest in specialized technical talent.

Pricing Isn’t Everything, Timing Is 

You don't “win” CRM deals in the negotiation. You win them before the negotiation even starts. with preparation, stakeholder alignment, and real optionality.

Starting early isn't just helpful — it's the single most important factor in your success.

Why The Extra Time Matters So Much

The strategic advantage of starting early isn't about better discounts,  it's about having time to properly evaluate what you actually need. As your company evolves, so do your CRM requirements. The features you prioritized three years ago might be irrelevant today. CRMs in particular don't like contraction. Starting early gives you the runway to overcome this resistance.

Early preparation also allows you to build consensus among stakeholders. Nothing derails a CRM negotiation faster than sales leadership undermining your position by telling the vendor directly how essential their product is.

Timing + Preparation, Also Helps with Pricing 

Here's the data to prove it:

Tropic's analysis shows companies that start 180+ days ahead of renewals save 39% more than those that wait until the final 30 days. Every week you delay costs you leverage.

Your leverage starts evaporating the moment your renewal deadline appears on the horizon. Here's your timeline for maximum leverage:

• ‍9-12 Months Before Renewal:
  
  • Complete a full utilization audit (more on this in next)
  • Identify actual needs vs. current contract state
  • Begin preliminary conversations with stakeholders about business requirements
  • Research alternative options if appropriate

• ‍6-9 Months Before Renewal:
  
  • Establish negotiation team and strategy
  • Set clear decision criteria (not just price)
  • Explore the competitive landscape for your direct use case
  • Initial outreach to account executive to signal you're evaluating options

• ‍3-6 Months Before Renewal:
  
  • Request first renewal proposal
  • Present exaggerated reduction numbers (aim higher than your target)
  • Get competitive quotes if appropriate
  • Start building back licenses strategically during negotiations

• ‍1-3 Months Before Renewal:
  
  • Leverage budget constraints in discussions
  • Involve executives if needed to break stalemates
  • Finalize terms and prepare for implementation

Reminder: Remember that timing is different for vendors too. Salesforce's fiscal year ends in January. HubSpot's on a traditional calendar year. Aligning your negotiations with their schedules can unlock additional flexibility as reps push to hit targets.

Audit Like You Mean It

Most companies are sitting on a shocking amount of CRM waste. Across Tropic's customer base, the average organization discovers they can reduce CRM licenses by 25-40% after a proper utilization audit.

The audit process requires looking at three critical numbers:

1. Purchased Licenses: What you're paying for
2. Provisioned Licenses: Accounts that have been created
3. Active Licenses: Users who have actually logged in within the past 30 days

The gap between these numbers represents pure waste, dollars flying out the window for software nobody is using. 

Further, a lot of suppliers will recommend that you have a 10-15% buffer in licenses so that if you do grow, you have them available. But, the reality is you're better off purchasing licenses as you need them rather than paying for "growth insurance" that often goes unused. 

Most vendors allow you to add licenses at your contracted rate throughout your term — make sure this is explicitly included in your contract.

Beyond Login Data: Utilization Isn’t the Same as ROI

But, don't stop with just login data. Someone logs into Salesforce twice a month? That’s not ROI. That’s barely hygiene.

Instead, you need to dig deeper. What are people doing with the tool? Are those actions aligned to revenue-driving work? Can the same outcome be achieved in a simpler, cheaper, or more integrated system?

Here’s how to approach understanding utilization: 

• Request detailed usage reports from your CRM vendor
  
• Map actual usage against user roles
  
• Pull in department heads to score whether each user’s access is “necessary,” “nice-to-have,” or “no longer relevant”
  
• Cross-reference that against current GTM goals

This exercise can determine if you need to cut licenses, increase them, or keep the status quo. 

It gives you organizational consensus because you’ve included department heads - not a directive to “cut licenses because we need to save money.” And you have a clear narrative tied to ROI.

It helps to run a stakeholder sprint before renewal. Ask each department:

• What are you using this tool for?
  
• What are the workarounds?
  
• If we didn’t renew tomorrow, what would break?
  

If You Go The Platform Route, Think Like a Portfolio Manager

Sales Cloud. Service Cloud. Marketing Cloud. AgentForce. CPQ. Slack. Tableau. It’s a lot. And every time a vendor bundles more in, the risk of underutilization goes up.

That’s why we push teams to treat CRMs like a portfolio — with distinct components, terms, values, and risks.

For instance, consider this scenario: 

Your CRM renewal includes a brand-new AI add-on. It sounds great. But when you ask for certain things like for usage-based pricing, a POC clause, or even separate billing, the vendor pushes back. You get told - the only way to access the AI feature? Lock in a 3-year commitment.

That’s not partnership. That’s pressure.

Here’s how you could respond:

• Agree to the 3-year base. Because you’ve done the homework and you know this is a key part of your GTM strategy, so you’re going to comply  
• But, always get something in return. Ask to co-term new features separately on 12-month terms
• Build in opt-out language tied to usage of the new feature 
• Preserve flexibility by creating a checkpoint for future performance

Tip: Separate “core” and “experimental” spend. Lock in the core. Keep the rest agile.

Smart Contracting Beats Hard Negotiation

With your strategy established, it's time to focus on contract structures that protect your interests. This is where many procurement teams leave money on the table.

Term Length Strategy

The conventional wisdom says longer terms equal better discounts. But this logic has eroded in the current market:

• For Core CRM Functionality: 2-3 year terms may still make sense for established products
• For New Features (Especially AI): Shorter 1-year terms provide flexibility as the market evolves
• For CRM Expansions: Consider co-terming new products with existing contracts

Uplift Protection

Salesforce has implemented a standard 9% uplift at renewal, while HubSpot recently introduced a 5% standard increase. These aren't inevitable though, they're negotiable.

Strategies for combating uplift:

1. Uplift Cap Language: Include explicit language capping future increases at 3-5%
2. Growth Commitments: Salesforce typically waives uplift for 15-20% growth
3. Multi-Year Terms: Lock in current rates for longer periods
4. Pricing Schedules: Include contractual volume discounts for future growth

The most effective approach is including specific language in your order form that limits future increases. While vendors typically start with the cap at their standard increase (9% for Salesforce), the floor they've accepted can be as low as 5%.

Payment Terms

Don't overlook the financial impact of payment scheduling:

• Monthly vs. quarterly vs. annual payments
• Net-30 vs. net-60 payment terms
• Upfront vs. anniversary billing

While vendors prefer upfront annual payments, this isn't always optimal for your cash flow. During growth periods, securing quarterly billing can significantly improve your working capital position with minimal impact on overall cost.

When it comes to CRMs, It’s not just a Contract. It’s a System-Level Decision

If your CRM disappeared tomorrow, what else would break?

That’s the question we leave teams with. Because this isn’t just a renewal. It’s a reflection point. A moment to ask:

• Is this system still serving us?
  
• Do we know how it’s being used?
  
• Are we getting the value we thought we were paying for?
  
• Is this the right stack for the next stage of our GTM motion?
  

The greatest challenge in CRM procurement isn't technical or financial — it's human. Sales teams become emotionally attached to their tools. IT teams resist change. And executives often have relationships with vendors that complicate objective evaluation.

Effective CRM procurement requires balancing technical requirements, financial constraints, and organizational politics. It's not enough to secure a good price — you need stakeholder buy-in, successful implementation, and sustained adoption.

You're not just saving money on licenses. You're ensuring that the technical foundation of your revenue engine is optimized for your business's unique needs.

And that's worth far more than a 10% discount.

Need help doing all of this? Tropic helps companies evaluate, rightsize, and renegotiate CRM contracts with data, benchmarks, and real-world tactics that actually work. Get in touch with a complementary savings assessment.