CHAMPION MINDSET
Vendor Vetting : How To Avoid The Hidden Costs Of A Bad Choice
Don ’ t get burned by a relationship that goes nowhere . Discover essential criteria for selecting vendor partners that will invest in your success with great account management , marketing assets , training , and more .
BY ESTHER SHEIN
Getting untangled from a relationship can be time consuming , costly , and angst filled . That ’ s why it ’ s so important to choose wisely when it comes to a vendor partner . You ’ re not just adopting their product or service ; you ’ re banking on their commitment and expertise to help you optimize those solutions and grow .
“ We should be choosing vendors judiciously because they offer a service that we really need ,” says Ed Correia , president and CEO of Sagacent Technologies , an MSP in Santa Clara , California .
Beyond product fit and cost-effectiveness , there are some intrinsic parts of “ partnership ” that can lead to mutual success and should not be overlooked when you ’ re vetting a vendor .
Here are some key considerations to help you make the right choice .
Lean On Me : Can You Count On Your Account Managers ?
For Michael Goldstein , president of Fort Lauderdale-based LAN Infotech , the ability to form a relationship with a vendor is a key criterion , and that starts with account management . “ When we ’ re vetting vendors , we make sure we ’ re getting the proper support ,” he says .
Goldstein expects his vendor representatives to help him clearly understand their contracts too : “ I think it ’ s important to make sure you understand what you ’ re getting .”
Account managers should act as “ an advocate , knowledge source , people / resource connector , and obstacle remover / smoother ,” says Dawn Sizer , CEO of 3rd Element Consulting , an MSP in Mechanicsburg , Pennsylvania . “ I would also expect them to be honest , have integrity , and be personable . While they may not be able to accomplish everything you ask for or want , they should know what is within the realm of what can be accomplished in their organization .”
They should also be setting quarterly business reviews ( QBRs ) with you , she adds .
Wanted : Marketing Materials And MDF
The availability of marketing materials is also very important to Correia . “ You should be able to create white-labeled marketing material I can take content from ,” Correia says . “ If you don ’ t have that , it ’ s a big negative for me .”
The availability of market development funds ( MDF ) ranks high for Goldstein , although it ’ s not the primary qualifier .
“ If a product solves a problem , has great support , and a good representative , yes , it ’ s important to have MDF .”
While MDF gives LAN Infotech the resources to run events , Goldstein knows that comes at a price . “ My grandfather always said , ‘ There ’ s no such thing as a free lunch ,’” he notes . “ I understand most MDFs require you to sign a small client ,” while some vendors have stricter guidelines .
This has prompted Goldstein to try and be more creative and bring in the vendor to demo a product to clients rather than make an overt sales pitch . “ For every dollar they invest in us , we hope to turn that around to a 20 % return ,” he says .
Sizer , on the other hand , considers MDF to be essential to an MSP ’ s strategy . “ There should be a conversation around [ funds ] before you sign up for any product or service ,” she stresses . “ Don ’ t have the conversation after the fact .” This should include what you need to do to qualify , for what amount , and how to increase that amount if some type of return on investment can be established .
Nuts And Bolts : Contract Flexibility And Tech Support
Contract terms vary , but Goldstein likes it when there is some flexibility . However ,
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