Last month’s CRN report, which is a periodical which provides technology news and updates for technology providers, had a startling article on how Value Added Resellers (VAR’s) are breaching ethics as a standard operating procedure to win deals in this highly competitive business environment.
We have all known of individiuals (and some companies) who endorse and embrace this behavior as the normal course of business. It goes without saying my opinion on this approach.
However, I am eager to hear what you think about this. Have you seen an uptick in this behavior in your field? What is the cause of this? What can leaders do to deter and prevent these approaches? Weigh in!
Anyway, the article touts poaching sales representatives from their competitors and urging (and in some cases making this a stipulation of the hiring contract) to bring their accounts with them. There were other examples of selling used equipment under the auspices that it was new and allowing partners to build the entire solution/proposal and then sweep in and undercut on price at zero hour – basically eliminating any cost of sales for the engagement. Finally, there were examples of spreading falsehoods about their competitors to instill fear, uncertainty and doubt (FUD), about their competitors. Apparently when things are tight, companies are doing anything they can to make their numbers, including crossing ethical and legal lines.