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Printing Services

You can standardize most forms, no matter how customized they seem. 
This will reduce costs and maintain the consistency of your materials.

Points to consider:

  • Make sure you understand the processes, materials and equipment 
    needed to produce your job. It is not enough to get 2 or 3 quotes.
  • Planning and better management of inventory reduces the amount 
    of material that will become obsolete and allows buying at better prices. 
    If you buy under time pressure, you will have less flexibility in choosing 
    suppliers and will end up paying more.
  • Charges for storing and releasing materials are negotiable.

Capital Equipment / Major, One-Time Purchases

You have the money. When it seems like there is only one way to meet your needs, dig deeper. You will become a more effective negotiator if you can create a viable alternative.

Points to consider:

  • In addition to negotiating price, consider financing and contract terms carefully. You may be in a better position to negotiate price if you negotiate financing with your primary lending institution.
  • If you sign a lease, make sure you revisit terms -- maintenance charges, equipment buyout, termination and equipment return fees -- after you have established a usage history.

Temporary Staffing

Pay attention to the skills you need, not by the qualifications of the people the temp agency has available. Don't pay for an accountant when you need a billing clerk.

Points to consider:

  • Agencies make a markup on the temporary employee's hourly wages. 
    The markup includes taxes and the agency's profit margin. 
    Taxes are not negotiable, but margins are.
  • After three months, the markup should decrease because the agency 
    has covered its up-front costs.
  • If you are doing significant repeat business, consider making temporary staff permanent.

Information Technology

No matter how tight the IT labor market may seem, don't underestimate your purchasing power - negotiations take place in this area, too.

Points to consider:

  • Don't specify more than you really need. It is easy to be sucked in by the next, best thing. 
  • Be careful about paying a premium for the first products on the market. 
    "First movers" often don't last, and adjusting to competing standards may add costs in the long run.
  • IT is not just computers and software. Consulting services, training, and installation can all be negotiated.

 

 

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