Cutting Costs not Corners

Office supplies encompass everything from cheap consumable items to expensive equipment. Regular replenishment of the former and occasional negotiation for the latter requires different amounts of cash and time; nevertheless considerable cost reductions can be obtained from both.

Brochure or broadband?

Buying on line can mean big savings in consumable items and offers three distinct advantages:

1. Saves money. Lower overheads mean that buying on line can cost as little as a quarter of the price of a similar item bought from the high street or through a brochure.



2. Saves time. Electronic search engines throw up dozens or even hundreds of suppliers all offering cut price deals, while a well-designed website can be much quicker and easier to navigate than a catalogue.



3. Reduces hassle. You don't need to store brochures or wait for reps to call and can source and order supplies whenever is most convenient.

Around 50% of businesses buy at least some office supplies online. PAs who do a lot of buying might find software useful which compares different potential purchases and analyses savings opportunities. I-SAVE (Independent Savings Analysis Verification and Evaluation) for example, is approved by the Chartered Institute of Purchasing & Supply (CIPS) and available free of charge to UK companies from http://www.oracle.com/uk/start/isave/intro.html

Independent high street shops are often more flexible about their pricing and so are willing to negotiate additional discount or take trouble to find exactly the item you need. Many firms have a minimum price guarantee, but that's no reason why you can't play one supplier off against another to reduce the price further for high-value or bulk orders. Providing you're accurate and open about what you're doing (sales reps often know each other and may compare notes) such competition can reduce the price by as much as 15%.

When buying or replacing equipment consider not just what the machine will do but how much things like replacement cartridges cost and how easy they are to obtain. One PA was highly delighted that a new laser printer was bundled with her replacement PC only to be frustrated when she learned how expensive and difficult to obtain replacement cartridges were.

Buying bulk

Bulk orders usually carry automatic discounts, although you must decide whether the discount is worth tying up your firm's capital earlier than strictly necessary. Ordering larger quantities increases your purchasing and therefore your negotiating power but leaves you with a larger quantity to use up before its shelf-life expires.

Buying office supplies in bulk means having suitable storage. Paper naturally absorbs moisture and this can lead to equipment jams as the paper becomes fractionally thicker and stickier. Make sure that you keep paper at room temperature, flat and wrapped unless actually in use. Not only will you ensure that it isn't wasted, but you'll reduce the amount of time you spend ferreting in the depths of machines trying to untwist jammed and shredded sheets.

With inexpensive purchases you need to weigh up the potential savings of finding a lower price against the cost of your time. Even so, don't automatically re-order from the same supplier every time you're running low. Most PAs receive a bewildering number of sales catalogues and comparing one or two prices for items you commonly buy can be salutary. Particularly don't forget to compare catalogue prices with those on webpages: prices can differ even for the same supplier. Prices and standard of service change over time and familiarity with at least two or three rivals ensures that you're getting the best for your needs. If a new supplier quotes a lower price, try them out. If its delivery arrangements are acceptable you make an almost instant saving.

The timing of large purchases is often very important, particularly if the price can be offset against tax. You might need to seek the advice of your finance department in order to arrange for the invoice to arrive within the most appropriate annual reporting dates. Many buyers also forget to check invoices when they're presented. Reputable firms will not deliberately charge more than agreed but mistakes can happen, particularly if you have negotiated a special price.

Everyone wants to save on office supplies. While there will probably be few opportunities for huge savings, a determination to gain the best deal combined with a little vigilance could save PAs significant savings over the year.

Dont Buy It

• In a hurry. Make sure that you have time to consider all the angles before you commit yourself - and certainly don't do so if a sales rep is pushing you.



• Because you like the firm's representative. Salespeople are paid to be friendly and helpful and often have very little to do with the quality of merchandise or service.



• Ignoring the small print. Yes, I know it's obvious, but one high-street printer recently estimated that almost 80% of its contracts were not read by the signatories.



• Because of a free gift. Even if it appears to benefit your firm, the gift is almost certainly either built into the price or something the supplier is trying to get rid of. That doesn't necessarily make it bad - the supplier could have over-ordered and need the space - but it shouldn't affect your decision.



• In a bad mood. If salespeople believe you to be pleasant as well as efficient they'll be much more willing to negotiate.