The larger the company you are buying from and the more complex the products, services and agreements, the more difficult it has become to track and understand the cost structures of each purchase.

Large companies seem to know and/or have figured out that the average business has reduced staff and the typical business is  unable to study each purchase, invoice, agreement, relationship and achieve even reasonable pricing in all areas.

Most businesses do a great job in some areas and get very confused in purchasing other items.

It seems that the large profits made by certain companies is dependent on pricing structures that at times seem dishonest, unfair and/or inappropriate.

The courts will uphold most contracts if they are entered into by businesses who are presumed by the courts to be sophisticated enough to understand contracts even if they are written in legal terms that attorneys have a difficult time explaining.

Most large companies have no mercy.  What you agree to in writing is what you are financially responsible for.

Automatic renewals, expirations that revert to extremely high rates and just plain unfair practices are prevalent throughout the business world.

What must be done:

All companies must validate all invoices at least every other month to make sure they are in compliance with existing contracts.  Rates charged must comply to agreed to pricing.  This step is missed at many companies causing overcharges to be overlooked.

Other competitive information must be obtained at least quarterly to make sure pricing conforms with current market conditions.

Systems, spread sheets, data bases and contact management systems must be installed to compare and remind staff members to check market conditions and to start the renegotiations of contract terms and conditions.  If negotiations are started early enough time and professional negotiations will enable the business to obtain the best possible terms and conditions.

A trick to negotiations is that price is only one important element.  Special terms and  conditions are critical to maximize the benefits available to a business.  Also, knowing the market price, terms and conditions is critical.

ATI:

ATI has just moved to a much larger facility and is now able to services its clients in a newly decorated more efficient environment.

The move went very well and with ATI's  negotiating skills ATI was able to complete a very favorable lease.

ATI has developed a risk free process of saving money.  Our clients never pay for services without savings being generated to support the project. There are no out of pocket expenses.  ATI has developed systems, templates, databases, and trained personnel to implement cost effective price controls.  ATI's cross industry experiences have enabled ATI to save its client's lots of money and to become a leader in the cost reduction and profit recovery services industry.  Our programs are based on contingent fees that enable our clients to save money without having to budget for ATI’s services. All ATI fees come from savings.  Our unconditional promise to you is "no savings - no fees are due ATI." 

Please email comments to dc@auditbills.com