THE IMPORTANCE OF CONTRACT NEGOCIATION

by Caleb Schmitz in March 30th, 2024

Getting to purchase your ERP solution or even an ecommerce solution requires more than just a simple evaluation of the software itself. If you want to get the best deal possible and know how to navigate pitfalls of enterprise software licensing, its important to have a specialized consultant alongside you.

Pelican Select is a NetSuite and BigCommerce consulting company that has additional specializations in contract negotiations. This team has team members have have been through over 500 customer engagements to know the common licensing pitfalls and the way for you to navigate it.

Ways to Navigate Enterprise NetSuite Licensing

There are a number of ways to navigate the enterprise NetSuite licensing.

Initial Purchase of NetSuite

If you are in the first sales cycle, this is where you can maximize the benefits of an independent consultant like Pelican Select. We help you know how to structure the licensing deals and how to avoid issues with getting major markups during your contract renewals. This is through years of experience in NetSuite sales cycles in addition to listening to over 500 NetSuite customers needs.

  1. Get renewal caps
  2. Don't buy licensing for things you don't need more than 1 month in advance (you can always co-term licensing, but you can never remove total value without voiding your renewal cap)
  3. Don't buy NetSuite premium support right away (we will tell you how to navigate this strategically)
  4. Don't buy NetSuite Advanced Customer Support right away (we will tell you how to navigate this strategically)
  5. Don't buy the number of users you will eventually need right away (we will tell you how to navigate this strategically. Pelican Select has services to help you manage users getting out of control. Its worth every penny!)

Contract Renewal of NetSuite

Most of your initial leverage has been lost so if you did not navigate the initial purchase well, you will need to give the same or higher dollar spend to keep your renewal cap. If you remove things, it might be best to just replace with users. Don't buy things you might need in the future but aren't totally set on. It's higher probability you will need more users so use that if you are replacing value spend to keep your renewal cap in place.

This is tricky to navigate well. Reach out to Pelican Select to help you through this process!


Pelican Select is an independent NetSuite advisory and ecommerce advisory company.

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