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Are You Getting Nickel-And-Dimed By Your Vendors?

17 June, 2021

Are you experiencing unexpected charges and feeling “nickel-and-dimed” by your vendors? This popular phrase, originating in the 19th century, refers to additional charges for services within a larger purchase. When it comes to the relationship between small and medium-sized businesses (SMBs) and vendors, being nickel-and-dimed means spending more on extra services than agreed upon, potentially impacting your business’s profitability.

As a business owner, it’s crucial to determine the level of IT support that suits your needs. Many small businesses operate under the “break-fix” model, where issues are addressed only when something breaks, resulting in costly hardware, software, downtime, outages, and lost revenue. Managed Service Providers (MSPs), like us, offer a monthly service agreement that covers all IT support needs. However, not all managed services are created equal, and it’s important to choose wisely to avoid being nickel-and-dimed.

Working with Vendors

When working with vendors, finding a solution that aligns well with your business is paramount. Opting for vendors that offer comprehensive solutions tends to benefit both the client and their revenue and profitability. Choosing a vendor that provides a complete solution eliminates the risk of being nickel-and-dimed. While the option to pick individual solutions may seem appealing, it often complicates matters and makes revenue and cost projections challenging. Efficiency is vital for SMBs, and a turnkey solution that offers a single comprehensive package is preferable, preventing unnecessary spending on unbundled features and minimizing the need to work with multiple vendors.

SMBs expect vendors to understand their role in supporting their businesses. Vendors should listen to their clients and assist in building their businesses. If you suspect you’re being nickel-and-dimed, it’s not a partnership worth pursuing. Don’t settle for an easy option or compromise on finding a vendor that meets all your requirements. A good vendor will prioritize lowering costs and continuously improving their solutions without upselling additional services.

Future-proofing your business

Future-proofing is crucial when selecting a vendor. New features should be seamlessly integrated into existing offerings without being treated as separate offers or stand-alone services. A reliable vendor will earn your business by delivering a complete, fixed-price solution and continually enhancing their offering without requiring extra payments.

Final thoughts

It’s essential to seek a vendor solution that meets your needs without hidden costs. Look for a turnkey solution that satisfies your requirements, offers reasonable pricing, incorporates new features at no extra charge, and demonstrates a genuine commitment to your and your customers’ interests. If you’re experiencing challenges with your vendors, please don’t hesitate to contact us. We’re here to ensure you receive the value you deserve.

17 June, 2021