Farmers Mutual Hail Insurance Company of Iowa (FMH), an insurance company providing peace of mind to American farmers and their families, had their data storage evaluation narrowed down to a pair of finalists: their current vendor and another well-established provider. They decided to engage Seprio to evaluate the proposals and help with negotiations, as they had done in the past with great success.
“We engage Seprio on all major expenditures. Their independent but empowered position, coupled with their deep industry knowledge makes them a valuable asset in any negotiation.”
From left to right: Pat Boucher, Seprio Sr. Negotiator and Client Lead; Curtis Swain, FMH General Counsel; Randy Roth, Seprio President; and Larry Casey, FMH Sr. VP and CIO
Objective
Analyze and leverage competing proposals from two major data storage providers to get FMH the best deal possible and lead negotiations for final terms.
Approach
Seprio reviewed and analyzed the vendor proposals and developed a comprehensive, “apples-to-apples” comparison. After evaluating proposals and a comparison summary in collaboration with all FMH stakeholders, final negotiations ensued.Seprio used a ready-made baseline established by the previously completed deal and current proprietary insights on market data to negotiate advantageous pricing and contract provisions.
Results
Seprio was able to lower the incumbent’s initial proposal by an additional $300,000, bringing total cost savings on the purchase to almost $10,000,000.
Both vendors acknowledged Seprio’s “tough but fair” approach to negotiations. This approach creates additional value because it also fosters positive relationships ensuring that vendors will fight for FMH’s business again in the future.
