As a department head, a business owner, or a property manager, combing through monthly invoices to make sure you’re not overpaying vendors likely doesn’t rank high on your list of priorities. With everything else there is to do day in and day out, there’s rarely time to check up on payments that should be status quo. After all, why fix something that isn’t broken?
But what if it is broken? What if you are overpaying for your paper goods, your trash and recycling service or your maintenance calls?
A quick price check of your current vendors could easily save you thousands of dollars annually.
Here are the top 5 things you can do to make sure you are not overpaying:
1. Make price checking part of your internal processes
Creating an internal evaluation of your existing vendors can help automate the process. It can be done as often as you like, but should be done at least annually.
2. Ask the right questions
Are there monthly discounts or deals you can take advantage of? Do your vendors have occasional promotions that you are not aware of? How can you rearrange orders to maximize your dollars – bulk orders, bulk mailings, etc.? Work with your vendors and ask what opportunities they offer that make the most sense for your business.
3. Get competitive bids
It is worth the time to get other bids. Not only will it give you an idea of what others are charging and if you can get better deals, but you can also use it as leverage with your current vendor. A lot of vendors will price match other quotes you find.
4. Get input from your colleagues or competitors
Ask other companies what vendors they use, and if they’re happy with them. If you’re comfortable, ask them about their rates. You could even inquire within your groups on LinkedIn. Recommendations can go a very long way.
5. Partner with experts to save your internal resources.
Don’t have time or the manpower to spend on price checking? Working with a team of expense reduction consultants can save you both time and money. At Silverback, we do all the heavy lifting to minimize using your valuable resources. Since our team has worked in many of the expense categories we serve, we know the right questions to ask, how to get competitive bids, and how to negotiate with your vendors respectfully.
Whether you make price-checking part of your internal processes, or partner with a team like Silverback, remaining diligent about your vendor contracts and relationships can ensure you’re getting the quality service you’re paying for.
Want to know more about how a second pair of eyes on your operating expenses can put money back in your pocket? Check out our many case studies to see how we boost our clients’ bottom lines.
