Vendors Poaching Your Clients?

By Joshua Oakes, IT Glue

Ever had a vendor reach out to your client as a contract was expiring, trying to get the business for themselves, cutting you out in the process? As an MSP, you’re often the intermediary between a vendor and the end client—a necessary role that’s beneficial to all parties. You have the relationships and the capacity to implement the vendor’s product and ensure ongoing satisfaction. It’s a symbiotic relationship that benefits all, but sometimes the vendor can’t resist the temptation to sidestep your MSP and go directly to the client, thereby capturing the margin that you once claimed. There’s no value in pointing the finger at vendors that do this or sitting around venting, so what can you do?

Don’t assume; diversify

You may currently enjoy the added revenue derived from reselling third-party tools but it’s a precarious revenue source. Have you modelled what it would look like if that revenue disappeared? How would it impact your current pricing scheme and ability to cover ongoing expenses? The greater percentage of your revenue should be from stable and reliable sources. Reselling SaaS doesn’t always make the cut, but selling time and expertise does.

Focus on your value

The benefit of having the client-facing role can’t be understated. You don’t just implement and maintain IT services, you provide a relationship and assurance that you’ll be there to support the client on an ongoing basis. This emotional connection and trust that’s nurtured over the years is worth more than the minor savings the vendor might offer the client, so focus on establishing this.