The contract renews itself every year. The notice window closed in March.

Automatic renewal is not an administrative detail. It is a pricing mechanism, and it works quietly in favour of whoever wrote it.

By Steve 5 min read
Abstract bridge artwork for The contract renews itself every year. The notice window closed in March.

A finance director decides in September that the software contract looks expensive. The renewal is in December, so there is time. Then someone finds the clause: ninety days’ written notice, or the term rolls for another twelve months. The window shut in the first week of September. The decision was made by the calendar, and nobody was in the room. This is one of the most common ways a business loses margin without anyone making a bad call. No one approved the increase. No one compared the market. The cost…

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