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Warning Sign #2: Asks for a Discount (With No Reason) The funny part about this one, is I always ask for a discount for no real reason. Even if I am only buyin
by kls 16y ago
Warning Sign #2: Asks for a Discount (With No Reason)
The funny part about this one, is I always ask for a discount for no real reason. Even if I am only buying a single piece of software. Why, because it lets me know up front if a vendor is going to be flexible with large volume purchases and OEM arrangements.
Funny story, I was evaluating some screen capture software for OSX not too long ago for a client of mine. I was building a web app for them and part of the work flow for their content was screen capture. Anyway, I emailed a company that had a reputable product and basically told them that I had no need for the pro version, would not be using the pro version for any commercial work but that I would like to use the pro version to teach my daughter about video editing. I then asked if they would consider selling me the pro version at the basic software packages rate. I framed the story in this fashion for several reasons. I had just told the developer/owner that I would be using it for non-commercial and educational purposes both of which usually get some form of pricing plan that is below the commercial mark-up lack of having a plan to deal with either tells me that they do not have a competent pricing structure, and quite possibly that they lack a formal sales organization and negotiating deals later on would be difficult due to lack of attention to pricing structure for the various fringe purchasing needs. Dealing with companies that do not have flexible pricing policies can be difficult when you are dropping large purchases in which no one realistically pays full price per seat.
Anyways, point is be careful of putting earmarks on customers, this small developer lost a $75,000 purchase (what we set aside for a site license) for seats on his product due to the fact that he showed that he was not flexible in his pricing structure. Allowing me to purchase the pro version at the basic version price would have cost him nothing and given the purpose it was purchased under "non-commercial and educational" there was a need to reduce price to be competitive. Instead, I got a dismissive response that the basic version was good enough for my needs and that if I wanted the pro version I would have to pay full price. Needless to say, his competitor was very happy with the $75,000 purchase order.
I guess, long story short, bargain shoppers are not always bad, some people negotiate over what seem to be inconsequential amounts because rather than haggling over dollars they are finding out up front whether a relationship with your company will be tenable.
- Monkeyget 16y agoSo you turned down a product because you failed to lie your way into getting a pro version? I fail to see how turning down a one-off for a personal request makes a company bad at handling corporate customers.
- kls 16y agoI like your choice of words "lie" as if there is some moral dilemma with framing a hypothetical situation to evaluate the response of a potentially critical piece of infrastructure. As well, for the record, before you jump to conclusions with charged and disingenuous position slanting words like "lie" It just so happens that that single purchase was going to be used to teach my daughter video production. I took it as an opportunity to feel the vendor out pre-purchase. As for failing to see that lack of pricing structure is indicative of immaturity in a sales organization I can only assume that that lack of sight comes from the fact that you either have little experience with enterprise and OEM purchasing or have never been in charge of contract negotiations, a inflexible vendor can be soul sucking. Negotiation is a big part of volume purchasing and flexibility in pricing structures is mandatory when dealing with such if there is any hope of creating a long term and mutually beneficial arrangement. To spell it out, a organization that treated a one off request for a discount due to non-conventional circumstances is a company that shows attention to detail, and a willingness to work with even the smallest purchaser to make them happy. If I told him hey I have 75K would he have responded differently? sure he would have, but where is his breaking point when will he decide that it is not worth supporting me due to the money being in the rear-view. Conversely a guy that supports even the smallest customer is going to treat a volume purchaser very well. Judging by this particular vendors response, I saved myself years of headaches by making a small simple request and I am glad I did. It is even more important when you deal with a small development house, I cannot tell you how many times I have seen large companies held hostage by a small vendor due to lack of maturity in their sales and customer support process. Ensuring that a potential vendor is not one of those shops is imperative to the happiness of my client and is therefore good business on my end. Vendors are free to have as crappy of sales and support organizations as they see fit, but when it comes to my organization I bend over backwards to make my clients happy and I chose vendors that align with that core philosophy. This particular vendor was within his right to not give me a discount, I hold nothing against him and I don't hold him account for it but I am also within my right to see that as a sign of lack of maturity in his organization and take my purchasing elsewhere. The purchase reflects on the solution that I was providing for my client, and my ability to support the solution is only as strong as the weakest vendors support. I'm not betting my companies reputation on a vendor that can't even put together non-commercial or educational licensing packages much less an OEM arrangement.