11/27/2017

3 Tips for Contract Renewal Season

‘Tis the Season for…Equipment Maintenance Contract Renewals

Are you approaching the renewal season for your financial equipment maintenance? We’re highlighting three ways for you to gather information that will increase your accuracy in estimating costs and in aligning expectations with reality.

#1 INVOICE MANAGEMENT & CONSOLIDATION

  • For any contracts coming up for renewal, take the time to really know your expenditures for equipment maintenance by analyzing invoices from the past year. Is your annual spend in line with expectations and your budget?
  • Are you receiving multiple invoices from the same vendor? Look for areas of consolidation to simplify the tracking of your maintenance expenses. Can service on multiple pieces of equipment or at multiple locations be invoiced at the same time?
  • Multiple contract expiration dates can make it challenging to know what you are truly paying for equipment maintenance. Taking a yearly audit can help you compare your year-to-year costs, verify invoicing accuracy, and reveal whether you are receiving fair pricing based on industry standards.

#2 SEEK VENDOR INPUT

Reach out to each service provider to get information on:

  • Equipment nearing the end of its useful life
  • Pending obsolescence of any of your equipment or their parts
  • Recommending upcoming preventative maintenance to extend useful life

Having this information as you approach contract renewals can help you plan your annual budget and minimize surprise expenses. These insights will also inform your decisions about replacing equipment that is obsolete and give you time to explore options for obtaining replacement parts. You will also have the chance to possibly shift over-used equipment to lower volume branches to extend useful life.

#3 VENDOR REVIEW/AUDIT

Prior to contract renewal is a perfect time to take the pulse of your branch staff to gauge their satisfaction with the service they receive from various vendors. Some questions worth exploring include:

  • Does the service provider respond in a timely manner to service requests?
  • Are on-site technicians dressed professionally?
  • Does the service provider treat branch staff with respect?
  • Is the quality of service meeting expectations both in terms of diagnosing issues and making repairs in a timely and effective way?

To budget and plan effectively, you need the right information. Reviewing maintenance invoices, learning from your service providers, and assessing their value can go a long way to ensuring you are making informed decisions during the renewal process. Equips experts can help streamline this information-gathering process. Learn how by connecting with one of our industry experts.

 

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