“Wit” or “Wit-out”?

In Philadelphia, we order our cheese-steaks “wit” or “wit-out” onions. 

Is your click rate “wit” or “wit-out”?  Paper that is.  Do you have paper included in the per click rate of your outsourced copier agreement?  Or do you purchase paper on your own for use in the outsourced copiers? 

When an outsource vendor includes paper in their per click rate, firms do not have to manage their paper inventory for duplicating.  The click rate is all inclusive; service, maintenance and supplies. The outsourced vendor will reconcile the monthly usage against the inventory and charge the firm for any excess paper as a line item.  

When paper is not included in a vendor’s click rate, it allows the firm to “shop around” for paper. Firms can purchase paper directly from paper houses or from their office supply vendor.  When adding the paper volume to the firm’s office supply annual spend, the firm can benefit from deeper discounts based on increased annual spend.

There are benefits to both scenarios. Weigh your options before you order, “wit” or “wit-out”.

Can Your Outsourcing Contract Grow With Your Firm?

Is your Facility Management contract structured to address the needs of your firm as it grows?  Or are you at the mercy of your vendor to provide pricing when the time comes to grow?  Do you know today what the cost will be to add labor and/or equipment in subsequent years of your outsourcing vendor Contract?  Structuring your FM contract to include pricing to add equipment or labor as you grow is important in knowing what your cost will be in the future.  Pricing should be structured to keep any additions to your contract coterminous. Your outsourcing contract can be structure to meet the needs of your firm today as well as the future.

For assistance in structuring your FM contract to grow with your firm, contact Mattern & Associates.

Review Your Contract

When was the last time you reviewed your contract with your equipment and/or outsourcing provider?  Have you conducted an audit to verify that you are being charged correctly?  Have the standards of performance been updated as your requirements have changed?  Take some time and make sure your contract reflects the equipment, services and supplies being provided by your vendor.  When conducting these types of audits, Mattern has found:

• Incorrect invoice prices
• Service levels that are no longer required and/or being met – for example hourly mail sweeps, or delivery of hardcopy incoming facsimiles
• The equipment listed on the invoice did not match the equipment actually being utilized

If you don’t have the time or resources, the professionals at Mattern & Associates can assist you with the review of your contracts.  Please feel free to call us at (610) 459-7750.

“Can I Get That in Writing?”

That is a phrase we use with regard to many different areas, however we may be overlooking one very important area — contract escalators.

Often, annual escalator provisions are not executed by both parties, formally in writing. In many cases they just go into effect on a specific anniversary date.

We should be receiving formal documentation regarding pricing changes. In fact any pricing change should only be enacted when it is presented as an amendment/addendum and signed by an authorized member of the firm.

Revisiting Support Services Contracts Can Cut Costs

By Rob Mattern

Let it be. The Beatles certainly thought that was a good idea. However, given the state of today’s economy, shaking things up instead of maintaining the status quo can be a great financial decision for a law firm. That’s what you should do with your facilities management operation — shake things up — it can pay off in a big way.

Since the economy has been struggling, many firms are realizing that they might get more favorable pricing and terms if they investigate all the options available to them; because vendors are hungry for business and their current providers want to keep them as clients.

Click here to read the entire article published May 3, 2010 on Law.com.