By Raymond Vrabel, Director, Technical Account Management, Continuum
Part 4 of a monthly blog series examining tips on how MSPs can work to break “bad” business habits that they might unknowingly fall into as a result of just wanting to get things done.
In the previous installment of “Breaking Bad,” I discussed how to maintain a healthy work/life balance. In this month’s blog, I offer tips on what MSPs need to look for when identifying and establishing vendor relationships. At first, researching and picking the correct vendor to mesh with your business model might sound like a daunting task – if you follow these steps, however, and watch out for the potential “red flags” that I outline below, you can find a vendor relationship that will be mutually beneficial for both of you.
1.) Make Sure your Vendor is Forward-Thinking. The last thing you want is to work with a vendor that’s just going to sign you up and then treat you as a SKU. No one wants to have the type of relationship where you hear from your vendor once or twice a year when they have something to sell you, or worse, when they need to raise their fees. Look for a vendor that’s not out to “nickel and dime” you every time a product upgrade is released. You want someone who is already building everything into a value stack, and understands how the channel, and more importantly how you, as an MSP, are conducting your business to best-serve your SMB clients. No one wants to eat into their margins or say to their client: “I have to charge you more because my vendor is up-charging me!”
Another thing to be certain is that your vendor is 100% committed to the channel. There are many vendors in our space who say this, but the reality is that they also sell direct and might just be telling you what you want to hear.
Ultimately, you don’t want to partner with a vendor that’s going to be competing with you for the same business.
Red Flags to Watch for:
- The vendor seems like they are not listening to you during the initial meeting, and just putting on a big “dog and pony show.”
- They aren’t taking the time to understand your business, your goals and your clients.
- They seem to be selling themselves so that they can add another number to their roster.
- Bottom line: You want to partner with a vendor that understands both your business and your goals.
2.) Is your Vendor Aligned with You? Vendors should share the same philosophy as you in knowing that as long as you are making money, they will as well. Their motto should be: “Your success is our success.” Are they only concerned with hawking product or how many licenses they can sell? Are they in tune with your sales training? Will they be able to help you gain a solid ROI, and leverage sales tools that are in tune with your business model? Also, will they work with you on figuring out new offerings and packages for your clients?
The biggest complaint I hear from MSPs who have experienced negative vendor relationships is that they only hear from their account manager when a quota needs to be met. If that’s the only time you hear from your vendor, then they are not a true partner. The right vendor will work with you in such a way that you are almost part of their internal company or advisory board. Vendors should think of you as a trusted advisor, in the same way that your clients feel about you, the MSP.
Some of the other ways to tell if the vendor is aligned with you: Are they looking to integrate with other vendors to make your life easier? Do they ask how they can help focus on your efficiency to improve your overall experience? It’s important to choose a vendor that has friendly relationships and alliances with other vendors as it improves efficiency. Are they listening to your product and business needs?
Red Flags to Watch for:
- Their pricing model doesn’t align with yours, and their products and services are difficult to use or frequently experience issues.
- They don’t understand how the MSP’s end user is using the product, which is one of the most important components of the vendor-MSP relationship.
- You have spoken to other MSPs who have worked with the vendor, and their negative experiences outweigh the positives.
3.) You Refer to them as “Your Partner,” not “Your Vendor.” As the MSP, you want a vendor that’s going to be with you every step of the way, and will adapt, change and overcome with you, no matter the situation. A vendor is someone who is basically selling SKUs out of a kiosk; a true partner is someone who understands your business and what you want and need. They care about your business, and are not just giving you lip service, and saying: “Yes, sir,” or Yes, ma’am.” They are being proactive and are acting on what they are saying instead of just telling you what you want to hear to keep your business. Are they looking to grow the partnership by attending industry events? This is another way to see if they are fully invested in the channel and the partners who support it. It’s definitely not a good sign if your vendor doesn’t show up to most of the main industry events.
Red Flags to Watch for:
- The vendor isn’t visible within the partner community.
- They frequently are absent from the major industry events.
- They aren’t making regular upgrades/improvements to their products; they are sitting idle
- They aren’t forward thinking, and don’t have a clear, innovative focus for their partner programs.
It’s pretty clear in the steps and red flags I’ve outlined; as the MSP, you need to do your research and find out which vendors will be the right fit for your business model, goals and vision. Remember that your success is their success, and should always be conveyed in every interaction that you have with your vendor partners.
Raymond Vrabel is Continuum's Director of Technical Account Management and participates in product and service growth initiatives. He manages Continuum's Technical Account Management team which supports more than 3,500 partners worldwide. Vrabel has more than 15 years of experience in the IT industry, specializing in managed IT services, disaster recovery and cloud solutions. Follow him on Twitter: @rayvrabel.
