Question

Ethical Dilemma #1

For many months your prospective ERP customer has been analyzing the hundreds of assumptions built into the $800,000 ERP software you are selling. So far, you have knocked yourself out to try to make this sale. If the sale goes through, you will reach your yearly quota and get a nice bonus. On the other hand, loss of this sale may mean you start looking for other employment.

The accounting, human resource, supply-chain, and marketing teams put together by the client have reviewed the specifications and finally recommended purchase of the software. However, as you looked over their shoulders and helped them through the evaluation process, you began to realize that their purchasing procedures – with much of the purchasing being done at hundreds of regional stores – were not a good fit for the software. At the very least, the customizing will add $250,000 to the implementation and training cost. The team is not aware of the issue, and you know that the necessary $250,000 is not in the budget.
What do you do?

Answer 1

You should be honest and inform the client about the issue that the ERP will need some customizing and this will add to the initial amount of $800,000. You should also inform the issue to your boss to determine any alternative course of action that can be pursued in the situation.

However, at the outset, the client will have to be informed about the situation. The client should not be kept in dark. This approach is ethical and honest. It will also help the organization in the long run. Selling on the basis of a false proposition will prove to be detrimental to the organization's business in the long run.