All of 125 organisations interviewed in a recent survey by
analyst firm Ovum had fallen foul of pushy sales techniques over
the last year, and many had been persuaded to spend more than they
wanted and faster.
"Many software companies claim they have become customer-centric
and that they have left the world of questionable sales tactics
behind them. However, these often return when vendors are under
sales pressure," contends David Mitchell, Ovum's software practice
leader.
The report identifies two key stings: the 'puppy dog' approach and
'gunmetal in the mouth'.
The puppy dog tactic exploits basic human nature. Vendors will
offer customers free software for a trial period before they start
charging. By this time, the customer will have built up a strong
bond with the company and be reluctant to back out.
It's a tactic pet retailers have used for years to sell puppies. IT
directors can avoid problems by agreeing purchasing costs before
the trial begins and by setting up metrics to properly evaluate the
trial.
With the gunmetal in the mouth tactic, the vendor will patiently
wait for an organisation to become dependent on its software before
hiking up its prices.
To avoid this risk, you should always have a commercial alternative
to mission critical software. You could also sift through the
contract for any ambiguities in the key terms and call the
supplier's bluff.