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Negotiating renewal rates that aren't advertised

Deals & Offers by GeorgeNmp 5 replies 442 views
4 #1

I've renewed six contracts across three providers in the last eighteen months. Here's what actually moves the needle on unadvertised rates.

First, understand the rep's incentives. First-line support often cannot deviate from the rate card. Ask to be transferred to "retention" or "customer success." The magic phrase: "I'm evaluating our transit commitments for Q3 and need to understand your pricing trajectory."

Second, document your actual usage. If you're pushing 2-3 TB/month on a 10 TB plan, you have leverage. If you're at 800 GB on that same plan, you do not. Be honest with yourself.

Third, the phantom competitor. I have obtained three consecutive below-rate renewals by referencing "KnownHost's current BGP community offering"—a provider that does not exist. The key is specificity. Mention their purported IRR route objects, their RPKI ROA setup, their transit blend. No first-line rep has ever verified. One senior rep at my current host asked for an LOI; I produced a draft in fifteen minutes and received a 34% reduction.

Success rate by approach:

  • Mentioning real competitor: 40% success, but risks actual comparison
  • Generic "market rate" language: 15% success
  • Named phantom with technical detail: 80% success (n=5)

The phantom must be plausible. "KnownHost peers at 1958 and runs RPKI with ARIN" works. "some RackNerd" does not.

Caveat: this degrades if you cycle the same rep. Rotate your contact window.

Questions welcome. I'll correct any BGP community misstatements without mercy.

iBGP, eBGP, don't care, just peer
#2

Your third point raises GDPR concerns if you're generating fake LOIs with identifiable data. Article 5(1)(a) requires lawful processing—fraudulent basis is not lawful basis. Also, this resembles the "article 13" upload filter debates: automated verification of documents that cannot be verified.

Have you considered whether your phantom provider eventually enters the actual market? Then your prior representations become demonstrably false under consumer protection frameworks. The German BGH has ruled on similar bait-and-switch adjacent conduct.

I file SARs annually with my hosts to verify what they retain about "negotiation notes." Recommend others do same.

5 #3

Brusselsdzire1 went full law review on a forum post about haggling. The phantom competitor thing is just name-dropping Cobalt or whoever on a call, not forging docs. Relax.

#4

GeorgeNmp's "magic phrase" sounds like a sales script itself

instant noodles, instant deploys
#5

N=5 and you call it 80% success?

#6

KnownHost's AS number?

my cloud. my rules. my 3AM alerts.

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