I work for a software company.
In the business world, companies like mine are often referred to as “vendors”. This gets under my skin.
Why? Because rather than simply categorizing a business for what it does, it’s often delivered in a pejorative way, as if the business providing the product or service is somehow subservient or inferior to the businesses they serve, or perpetually in the role of being lower in the proverbial food chain.
A “vendor” really has two definitions, according to the dictionary:
1. A person or agency that sells.
2. A machine that dispenses products.
I think the negative connotation I perceive comes from labeling the first thing like the second (and those who probably give good businesses bad names because they behave like the latter themselves). In the supply chain sense of the word, a vendor used to mean a property seller. Over time, it broadened to mean anyone who supplied to other businesses, mostly in the realm of tangible goods like manufacturing, but eventually services as well.
Here’s the thing, today more than ever.
We’re all providing something to someone.
Whether we do so valuably or not is another post altogether. But whether you’re making cogs or bearings, writing copy, consulting, or selling research, you’re effectively a vendor to someone, too.
Language and Perception
We have a hard time obsolescing words and terms that don’t fit our business models anymore. But every relationship is contextual. If I provide a service to your business, that puts our relationship in one context, and my accountability is according to that supplier-investor cycle. If you in turn provide to another business, suddenly you find yourself on the other side of that coin. If you’re in the business of advising, that doesn’t exempt you from the fact that you’re still selling something to someone else, even if its your brain.
Maybe I’m reading into this too much.
But I can’t help but note the analysts or the pundits or even the consultative types sometimes referring to their “vendors” with nearly a sneer on their face, as if they wouldn’t deign to put themselves in the same business category. But we’re an ecosystem, fellow business people. We’re all buying, selling, needing, providing. It doesn’t work otherwise.
And if you pay attention to my conversations, you know how much I think words matter and how much I value conscious communication. Language is important, as is the intent with which we use it. And in an ever more complex, networked, and nuanced business world, I admit that I eschew the kinds of generalizations that label a business as merely a “vendor” as much as I do the notion that all “consultants” are of the same ilk (and singular, one-dimensional profile). Because the labels we give one another sure set the tone for how our relationship begins or evolves, don’t they?
So this started for me as a single example of a term in business that I think is not about the actual definition, but rather the perception or judgment it carries. And now I’m wondering what other words we might be using that are limited in their nuance, have taken on definitions or implications that are outside their original intent, or that might simply start to become obsolete as the shape of business changes around us.
And I’m thinking really hard about how the words we use in the context of our business relationships can have a profound effect on the way we perceive ourselves, one another, and the value of the work we do.
(As for what I’d rather be called, instead of a “vendor”? I think I’d just like to be a company, who happens to be in the software business. But I’m still thinking.)
What do you think?
As a former cofounder of a tech company I never thought of our company as a vendor. I thought of it as solution to people’s problems. As an innovative company improving peoples lives – while steering clear of the revolutionary (since that’s been overused and often misplaced in context)
Amber, definitely agree that the connotation with being called a “vendor” is usually not positive. Statements are more along the lines of:
– “oh, you are just a vendor”
– “oh, you are one of the vendors in the space”
– “oh, you aren’t a consumer or an enterprise but rather a vendor”
There is a dismissive tone to the comment that, as you say, has a connotation of being inferior in some way to the “real” companies that are the consumers of your products. I do understand why some analysts speak that way – they are seeking to understand the experience of the people actually using the products, versus the messaging from the companies making the products. Still, “vendor” does seem to trivialize.
As far as an alternative, I prefer the simple “software company” or just “company”. I’ve heard some use “manufacturer”, but “manufacturer” seems to harken back to a more mechanical age than our information age.
You’re right, though… language *does* matter.
It’s rarely a good idea to put labels on anything or anyone: Republican/Democrat, Smart/Dumb, Rich/Poor, Conservative/Progressive, Old/New…..it separates us from one another and from ourselves. Not a good recipe for creating a world that works for all.
Amber, Very thoughtful…
One problem that I think we all have when we’re marketing or “selling” our services to others is using the words and terms that our customers are using to refer to what we’re selling. For example, while I feel that social media marketing or social media optimization really is just part of the overall marketing strategy for a company, I find that customers are specifically seeking out services by those names. I think of myself as a digital strategist, so do I use my words or what my customers are using? Marketing strategy would point to the latter.
I actually try to strike a balance because I think just using words like “social media marketing” put me into a pigeonhole that I don’t want to be in, but at the same time, those words are needed for online marketing since customers are searching for those words.
This also brings up a “standard marketing practice” of trying to put labels on people for purposes of segmentation…..
Amber,
I applaud your focus on paying attention to choosing our words intentionally. Too often we use words without much thought and are surprised by the unintended consequences. Here’s a quote that I share to prompt a bit of reflection on the impact of the words we use:
“Watch your thoughts; they become words.
Watch your words; they become actions.
Watch your actions; they become habits.
Watch your habits; they become your character.
Watch your character; it becomes your destiny.” – Patrick Overton
Thanks for raising the issue.
Cheers,
Andrew
I love this. More to the point: Watch your thoughts, because they create your reality. But that’s a whole other blog post.
Great points Amber. I’m an “in-house designer” and have been told on many occasions that I need to be more conscious of how I manage my role because I am a service provide. Yes I provide a service to my co-workers, but don’t we all? Why do I have to be more aware of my interactions with my “customers” when they are full time employees just like me. Aren’t we all on the same team?
Absolutely agree with you that these words matter, and that “vendor” has a pejorative quality in today’s business – more like a machine than a human. But to transition from a “vendor” to a “partner” takes more than just awareness of the words we use – there’s a level of effort, insight and relationship required to make that leap.
A “vendor” becomes a “partner” to me when they get in FRONT of my work – when they’re steps ahead of me and answering my business needs before I get there.
A “vendor” becomes a “partner” when they demonstrate the value of their solutions – when we’re no longer talking about pricing and we’re talking more about outcomes and results.
It’s a good topic to riff on, but I won’t abuse your comments field. 🙂
As an independent observer of the industry, I use “vendor” to distinguish the companies that sell social media analysis products from the other companies who buy them (also tricky to label). I know it can have negative associations, but I don’t mean it that way. Calling everybody “company” just gets confusing in a B2B market–sort of like sentences with too many pronouns.
I think it’s mostly a matter of perspective. Buyers think about vendors because of their job, but sellers think of themselves as company. It’s like the ad agency relationship. How many advertisers would describe their companies as clients (or themselves as “client-side”)? Only in an agency discussion.
More questions than answers, I know. Maybe the point is not to take offense where none is intended.
Looking forward to meeting you in Boston. 🙂
Interesting view. And I think .. it depends.
I don’t really see the issue however as are you not a ‘woman’. That is a label and also fact. Yes we all sell something, but labels are more definition and titles and can be important.
While working in a corporation I dealt with business units, sales, support services, and vendors. It was important to designate, due to budgeting, so others knew which group was referring to, and as vendors are external. Why does that matter? As we do not work for the same company. We do not have the same vision necessarily. There is some information the company cannot share with the vendor. There is information that the vendor cannot share with their customer the company.
Is it important as far as describing what you do, or what type of business? Maybe it helps some people understand, as the word vendor also has a definition as supplier. I also have worked for software companies that are vendors – but I usually described as supply/sell software to X Industry. And explained what the software accomplished.
So to be – it is not really about labels as much as who we are talking to, that matters 🙂
A lot of companies try to get around that by calling themselves “partners” or “solutions providers” or something similar. The intent is noble, but it’s all semantics. I’ve been on all sides of the fence. I’ve worked at software companies where my role was primarily internally-facing and I had people (“vendors”) pitching me all the time. I’ve worked at software companies where I was externally-focused, and I was the vendor. And I’ve worked as a consultant and for an agency where I was, well… I was the guy who was always selling. I think one key to developing a positive relationship among all parties is in recognizing the humanity of the person on the other end of the phone or email. We’re all doing our jobs, and most of us are doing the best we can. It also helps when the “vendor” has something valuable to offer and provides it to the best of their abilities. That’s when you really become partners.
David you said this so much better than I could – excellent!
I agree with David on this being semantics. As a corporate-side marketer, I have frequently called people and companies “vendors” but it’s never been in a way where I associate that term with anything negative- that’s the farthest thing from my mind. Obviously the companies that I choose to pay to work with me and my organization have significant value to me, otherwise I wouldn’t use them.
For me to call all those who I work with as “partners” seems to almost stretch some relationships too far. A “partner” to me is someone who is strategically and monetarily invested in the success of the organizational outcomes as predefined at the start of the partnership. There are many “vendors” I work with that are amazing and important to me, however very few have the shared risk and stakes that I would consider a “partner” to have.
My point after this rambling: not all people associate “vendor” with negative connotations. An important distinction must be made with how the term is used in context. If said with disdain, it obviously can sting. Focus on the value you are offering, and you will maintain a positive relationship with your client no matter what they call you.
I agree with David on this being semantics. As a corporate-side marketer, I have frequently called people and companies “vendors” but it’s never been in a way where I associate that term with anything negative- that’s the farthest thing from my mind. Obviously the companies that I choose to pay to work with me and my organization have significant value to me, otherwise I wouldn’t use them.
For me to call all those who I work with as “partners” seems to almost stretch some relationships too far. A “partner” to me is someone who is strategically and monetarily invested in the success of the organizational outcomes as predefined at the start of the partnership. There are many “vendors” I work with that are amazing and important to me, however very few have the shared risk and stakes that I would consider a “partner” to have.
My point after this rambling: not all people associate “vendor” with negative connotations. An important distinction must be made with how the term is used in context. If said with disdain, it obviously can sting. Focus on the value you are offering, and you will maintain a positive relationship with your client no matter what they call you.
Amber, when I saw your tweet I knew I had to read this. I’ll never forget the first time I heard someone use the term “vendor”. I looked around for the guy with the snack boxes on a dolly, only to realize with horror that they meant ME. As a creative person working with highly creative people, who bend over backwards to constantly come up with fresh ideas that hit the ball out of the park for our clients, I was floored and insulted. But a sense of humor can be invaluable. I would laugh and ask if they wanted concept F3 or B2. They got it. It’s usually the accounting/finance people who use those labels, and as long as they pay on time, they can call me asteroid if they want.
I was working with a large retailer that was moving into a professional service kind of business in their stores and hired me to consult. When I arrived at their head office for a meeting, I was ushered into the “Vendor Waiting Room”, full of guys sitting there waiting for their turn to pitch the company on selling their brand of snack food, cleaning products or widgets. We all waited our turn to get our 5 minutes with the important people – it was insulting.
Rick – that does sound insulting, and doesn’t sound like that company understands how to treat people, regardless of what they name the room or people waiting.
I’ve never liked the term “vendor” either. @Natalie wisely suggested that you are a solution to people’s problems. Really, great brands are all solutions to people’s problems… and there is no reason why a software company can’t be a wonderful solution to a serious problem. Vendor, however, does carry a negative connotation.
Labels make it easier for consumers to navigate the market,; for highly saturated markets, however, more definitive labels are necessary.
The negative connotation comes from bad salespeople. I don’t sell a tangible product on the internet. I’m selling me. I get that Amber. So often (too many to count) I get bombarded by sales people who only engage to sell. THAT’S the FAIL in this for me. Don’t comment on my blog post (usually in a sales-y way) or start a brief conversation with me if your final intention is to get me to buy something. It’s false, I know it’s coming, and I can’t stand it. If you make yourself interesting, and provide good content then people WILL come to you. So yeah bad social media sales people ARE called vendors. Good ones are called people.
If you come up with something better let me know. I went through the same thought process when we launched http://investinsocial.com, where Radian6 is one of our best-most-complete vendor profiles. My biggest issue with the “vendor” term was not a positive/negative end user feeling. Instead there is a conflict in that vendor was the best term we could find for accuracy and yet is not used very much to define the category we were defining (software and non-agency service providers). Meaning, there is little SEO use in the term. That being said, I don’t have a better option yet, so hopefully we can help the positive end of the definition gain some steam.
Vendor is a commoditizing word. For me, that’s why it’s one to be avoided in a buyer/seller relationship. When I worked at IBM I didn’t want to be thought of, or referred to, as a “vendor.”
To me, use of the term like vendor and buyer means the relationship value is low, and the interaction is mainly about a transaction. And sometimes, that’s all it is. I don’t always want a consultative relationship with the companies I buy from.
Come to think of it, I wonder if buyers (outside of purchasing) want to be referred to as “buyers” when they think of themselves as a business leaders or something else.
In the software industry, the “vendor” is used more generally to mean the companies building the software. In this context, it’s more descriptive, so I’m not sure it’s good or bad.
I write about software vendors from time to time, and certainly don’t mean it as a putdown. What terms should be used instead?
Bob Thompson
http://www.CustomerThink.com
I can absolutely, 100% relate. I too market a software product for an IT firm and know all too well how easy it is for our product to be thrown into the pot with all the world’s CMS’s & how much more frequently we strive to “prove” ourselves – though our product is different, in a prospect’s eyes, we’re just another content management system.
Holy crap this was the world’s longest run-on sentence.