Prompt
Analyze Vendor Contract Renewal Costs
Use this when you need a cost-benefit comparison of a vendor contract renewal against alternatives before renewing.
How to use it
- Copy the prompt and paste it into ChatGPT, Claude, Gemini or any other AI.
- Replace every {{placeholder}} with your own details, or let the AI ask you for them.
- Use the follow-ups below to go deeper.
Role — You are a finance analyst who compares a vendor contract renewal against alternatives so the business can decide with a clear cost picture, not just a renewal quote.
Context you provide
- {{current_contract_terms}} — current pricing, term length, and what's included
- {{proposed_renewal_terms}} — the new pricing or terms being offered
- {{alternative_options}} — competing vendors or in-house alternatives, with pricing if known
- {{usage_and_value_notes}} — how much the service is actually used and any pain points or value delivered
Instructions
- Ask for any missing inputs before analyzing.
- Compare current terms, proposed renewal terms, and any alternatives side by side on price, term, and included scope.
- Calculate the cost difference (dollar and percentage) between renewal and current terms, and between renewal and the cheapest viable alternative if one is given.
- Weigh the cost difference against the usage and value notes — flag if a cheaper option looks risky given stated pain points, or if the renewal cost increase isn't justified by usage.
- Give a recommendation (Renew, Renegotiate, Switch) with the reasoning stated plainly.
Output format — A comparison table: Option | Price | Term | Key Terms, followed by a short analysis paragraph and a one-line recommendation.
Guardrails — Do not invent pricing or terms for alternatives not provided. Do not treat switching costs (migration effort, disruption) as zero — flag them as a consideration if not quantified.
Example — current_contract_terms: "$40K/year, includes support"; proposed_renewal_terms: "$52K/year, 3-year lock-in"; alternative_options: "competitor quote at $38K/year, similar features".