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Ask the Experts: Vendor/Client Relationships

April 2008
1

But on the face of it, I’d say good riddance. How hard does one have to work to meet the needs of a bad customer?

For the nonprofit to end the relationship on these terms means the VP didn’t value the relationship anyway, and it was likely about to end. The DM company saved 1,500 bucks.

And if I wanted to be a smartass about it, I would compute the value of the revolving loan based on late payments and write back and suggest that I’d be willing to donate the value of the loan as an ‘in kind’ service.
— Thomas W. Hurley, partner/president, Non-Profit Group, DMW Worldwide

The ethics side of this issue isn’t my turf, but the communication side is. My feeling is that, from the nonprofit’s point of view, this was a real failure to communicate effectively. Despite the ease of e-mail and other (often faster) ways of communicating, we always counsel nonprofits to communicate bad news of any kind by voice. This nonprofit should have called, requested a meeting and expressed their appreciation of the corporation’s past support. Then they should talk about the level of commitment they’ve experienced previously from the corp. and others, and discussed why the giving was cut.

Ideally, they want to up the gift now or in the future — and that only happens by learning and building understanding. If they chastise a supporter, they’re only going to alienate them and reduce the likelihood of future support.
— Sarah Durham, principal, Big Duck

For more expert responses to this question, see next week’s Advisor.
 

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COMMENTS

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Most Recent Comments:
Jeff Dobkin - Posted on April 01, 2008
On the face of this, it sounds a lot like "pay for play." We in Philadelphia are especially familiar with this concept - and you only had to look at the ex-mayor's office to see this in action.
However, the number you didn't mention might come into play. If the vendor was churning out $400,000 worth of work a year the donation figure requested might have been more realistic; although what gall to ask for it, no matter how elegantly initially phrased. And talk about an ungrateful way to accept?
On second thought, "pay for play" sounds like it fits, no matter the amount. I know I look past the dollar figure from our own vendors. While bids must be competitive, value and service weigh in more heavily in our vendor equation.
Click here to view archived comments...
Archived Comments:
Jeff Dobkin - Posted on April 01, 2008
On the face of this, it sounds a lot like "pay for play." We in Philadelphia are especially familiar with this concept - and you only had to look at the ex-mayor's office to see this in action.
However, the number you didn't mention might come into play. If the vendor was churning out $400,000 worth of work a year the donation figure requested might have been more realistic; although what gall to ask for it, no matter how elegantly initially phrased. And talk about an ungrateful way to accept?
On second thought, "pay for play" sounds like it fits, no matter the amount. I know I look past the dollar figure from our own vendors. While bids must be competitive, value and service weigh in more heavily in our vendor equation.