LongtermIs your current vendor attempting to lock you into long term agreements with a costly or non-existent cancellation clause? Yes, there may be the benefit of price certainty, but these kinds of agreements should raise many red flags. If you’re in an agreement or considering an agreement like this, you should be asking yourself “What is my vendor afraid of?”

This is an age old strategy for companies who are unable or unwilling to consistently perform at quality levels. Many times there is a core team or a few core teams who are very experienced and deliver great service. Although this team might provide good service, they are usually re-assigned or spend significantly less time on your account shortly after the execution of a long term, rigid contract. This can stick you with subpar service for years before you are able to do anything about it, placing a large burden on your team who has to pick up the slack.

And of course, the last part of this strategy is for them to “improve” a few months before your renewal comes up, convincing you that their organization has “gotten things together” as a whole. Often times the reality is you’re being buttered up for another irreversible commitment.

The best course of action to take in preventing this type of phenomenon is to focus on long-term past performance before renewals, place performance guarantees in your contracts, engage in shorter term agreements or cancel with your vendor if they insist on locking you in like this. Even though we are the largest privately held company in the unemployment industry, we take pride in our ability to bend over backwards when it comes to the flexibility of our contracts. Our agreements are laden with performance guarantees, simple cancellation options and fixed pricing (without long term commitments) because, with a 99% client retention rate, we are confident that the quality of our service alone will keep our clients with us.

Contact CCC to see how we can save your organization time and money. Contact our Sales Team (800) 207-6926

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