This post was inspired by a September 8, 2009 InfoWorld article titled Dirty Vendor Tricks. The article talks about unscrupulous software vendors and mentions six dirty tricks they employed to separate you from hard earned company funds. The six dirty tricks listed in the article are as follows:

1. The Magic Demo – a canned demo that does magical things but doesn’t actually represent what the vendor can deliver

2. Underbid, then Overcharge – pretty self-explanatory

3. The Customer Headlock – once some vendors have you as a customer they will do anything to keep you, even if it crosses unethical lines

4. The Billing Mistake – billing you for services never rendered, or for more than you contracted

5. The Forced Upgrade March – requiring costly upgrades to keep you current even when what you purchased is relatively new

6. The Clueless Customer – This isn’t really a dirty trick, but is what happens when the customer puts too much trust in their vendors

If you’d like to read some of the specific horror stories that help drive their point, you can find the article here.

After reading the article I had two thoughts. My first thought was caveat emptor, buyer beware. It’s unfortunate that there are people and companies in this world that are more concerned about collecting money by any means than by acting with integrity.

However unfortunate this business model is, it is a reality of doing business and the customer must take the responsibility to ensure that they aren’t being taken advantage. This means taking the time to read the fine print of contracts and agreements as well as making sure that expectations, exceptions and assumptions are clearly communicated in writing. The larger the project in terms of business impact or cost, the greater the requirement to have a clear, written contract that can be reviewed by both parties. Ask your vendor to provide written expectations, exceptions and assumptions before you accept the terms of an agreement or give your authorization to allow work to begin. It can be as simple as a several line email or as complex as a multi-page document. It’s amazing the clarity that such a practice provides for both client and vendor and can save both parties time and money.

The second thought I had was that it really helps to know as much as you can about the companies you’re doing business with. I realize this thought seems a bit obvious, but it is often overlooked. Ask for referrals and actually talk with the reference accounts. Ask questions like, “Did their invoice match their proposal and if not why?” or “Was the level of service delivered equal to their promises?” If a company you’re doing business with treats a previous client unscrupulously what makes you think that it would be different for you?

Don’t take me wrong, I don’t believe all or even most businesses behave poorly. The vast majority of firms conduct business in a professional manner and try to take care of their customers. It only takes one unscrupulous vendor, though, to put your own firm in jeopardy. Take the time to read the contract and get a clear, documented understanding of what products and services you are contracting. In the long run, the enhanced clarity will improve the client-vendor relationship.

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