SI’s Cup Of Woes Overflows

The systems integrators (SI) are an important link in the channel chain and
their cup of woes is overflowing. On the one hand, they have to work hard to bag
orders from corporates and enterprises, and on the other, they have to labor
tirelessly with vendors to get that ‘special price’.

The first task, the SIs take it on their stride, because it is their job, but
the second, they love to hate. The SIs have begun questioning the tendencies of
vendors and principals, who instead of acting as enablers of business for them,
try to draw their own pound of flesh by remaining inflexible on the price front.

Prices have indeed become a key factor in difficult market conditions. Both,
vendors and partners have to answer tough market calls and respond. But in doing
this, they can’t be moving in opposite directions. If they do, then it will be
at their own peril.

For instance, for an SI to say that he/she has to pamper the principal to get
the ‘special price’, does show that all is not well in the relationship
between the two. Or for example, if an SI gets the feeling that the vendor
manifests monopolistic tendencies when it comes to pricing, then the vendor is
certainly twisting the arm of the partner to draw blood out of the deal.

What the SIs find most galling, is the human factor involved in deciding the
‘special price’. The situation is akin to ‘controlling principals’ to
get the ‘special price’ rather than getting a ‘special price’ based on
an objective analysis of the value and volume of a particular contract.

Perhaps the SIs are expecting too much. And why not? It is they who slog it
out in the marketplace, provide the necessary reach to the vendors and bring in
the business. So, naturally, they look for that ‘special price’ as a reward
for their efforts.

But, in the process if they are stonewalled by principals, then the latter
are not creating an environment that is conducive to business. The tendency to
move in opposite directions when it comes to pricing, needs to be curbed
urgently for a cordial relationship to continue between SIs and principals.

At the same time, SIs have to look at the aspect of cultivating their
principals in such a manner that they facilitate their business and not come
across as stumbling blocks. SIs cannot shirk off their responsibility of
maintaining good relationship with their principals.

One of the ways of doing this would be to organize regular meetings across
the table where views are exchanged formally or informally. This is crucial
because only a personal touch and a continuous interaction alone would help in
understanding and meeting each other’s expectations.

sylvesterl@cmil.com