Service provider contracts could hold key to cost savings

service provider

Companies may be able to cut costs by reviewing the contracts they have with service providers, according to researcher, entrepreneur and business coach Ed Richardson.

“In my own case I reviewed the contract our company has with a provider of voice over internet protocol (VOIP) telephonic services.

“What prompted the review was a sudden jump in the rates being charged, despite the fact that data costs have come down.

“Hidden in the small print is the promise that the provider ‘will be cheaper than the main opposition’.

“It took a few minutes to search for other prices, and I was able to prove to them that they were not the cheapest. Our monthly bill has been substantially reduced,” says Richardson, who has launched ‘Streetwise Guru’, a growing collection of practical courses for business and life in general.

“The lesson, for me, was to review any contracts involving recurrent payments to determine whether the provider is in breach of contract.

“We have also been able to negotiate reduced rates with other service providers.

“Similarly, we have ‘payed it forward’ by reducing costs to our clients where we can, and we have paid our bills.

“As business owners I believe our priority should be to support our own supply and customer chains.

“Even if we do not think it is the right thing to do, the truth is that we cannot survive without them”.

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