By Robert C. Mattern
Mattern & Associates LLC
Over the years, a law firm will procure millions of dollars of technical hardware for the benefit of its employees and physical plant. These technical items can range from multifunctional devices to cost recovery systems to vertical lifts for 34-story office buildings - quite a diversity of purchasing decisions. Given the complexity, importance and variety of these purchases, we propose the following suggestions to ensure your firm benefits most from what you buy.
Some of the things you should do:
1. Examine total cost of ownership
When procuring equipment, the bottom-line purchase or lease price is normally the number everyone is scrutinizing. Yes, this number is important, but equally as important are the supply and maintenance pricing requirements that support the procurement itself. Know what each component of the total cost of ownership costs at the projected volume. For a simple example, an inkjet printer costs initially much less to purchase than a laser printer, but not when you add supply costs at certain volume levels.
2. Try before you buy
Everything looks great in the showroom. Insist on an on-site trial as part of any procurement process - with no strings attached. If the vendor won't allow it or wants to charge you for it, then you have the wrong vendor. As a component of the on-site trial, develop a checklist containing every possible situation or process this piece of hardware may encounter during its life cycle.
Make sure the end-users verify that the piece of hardware on trial was exposed to these processes and was able to handle them effectively. A few years ago, we were placing a very high-end color unit at one of our clients' offices. We followed the above process but there was certain cover stock they ran for projects with a cutout window. You guessed it: that wasn't on the checklist and when they did run it after the unit was procured, the machine couldn't handle it.
3. Determine and check your specs
Based on your initial specifications, make sure you have stipulated detailed performance criteria in the contract (and the associated Request for Proposal). Having this detail incorporated into the contract, and having both parties agree on it, will only make it easier to address the situation if and when something doesn't work.
4. Build flexibility into every deal
Make sure you build flexibility into any type of maintenance pricing based upon volume. Before you commit to any type of monthly or annual volume, make sure you are going to reach it, and that there are credits if you don't. Some ways to approach this is a zero-based plan, where you only pay for the volume completed, or negotiate for an underage credit for under-usage.
On the procurement side, if it is a multi-unit deal, make sure you build some type of flexibility to upgrade, downgrade or "walk away" from a certain percentage of the units. Obviously, if you purchase the units, this term does not apply, which is one reason we do not advocate purchasing hardware. To illustrate, if a law firm merges with another firm, there will be redundant machines. If you have negotiated 100 percent flexibility on equipment under your outsourcing contract, you can return all of your equipment with no penalties or early termination charges.
5. The lemon out-clause
Have language in the contract that addresses what happens if the unit or units do not work to the specifications detailed in the contract. Hopefully this will not happen, but if it does, make sure you can walk away from the obligation if the equipment does not perform as promised or specified in the contract.
6. Specify the after plan
Be very specific about what happens at the end of the deal. Do you own the equipment? Is there a buyout? If so, how much is it? Who is going to support it after this point and what will it cost you?
Some of the things you don't do:
1. Don't forget to get it in writing
Do not count on the same person who sold you the products to be there next year. In other words - have everything in writing. Chances are the person who sold the product will not be there next year. Memories tend to fade when the going gets tough.
2. Don't fall in love until you are walking down the aisle.
My mother used to say this about any type of purchase or commitment until everything was signed and complete. In other words, do not be afraid to walk away from a deal or a purchase until everything is signed and the deal is done to your satisfaction.
Too many people fall in love with a tech purchase and stay in love with it even though the deal is turning out not to be in their best interest, or the product has not been proven through the trial to do everything they need it to do.
In these economic times, the power is in the hands of the buyer. By following these tips, your chances of success for any tech hardware purchase will improve dramatically.
Rob Mattern is the president of Mattern & Associates LLC, a firm of consultants who work with law firms to improve their support services and the realization of their soft cost recoveries.