Take Advantage of Competition to Lower Law Firm Communication Expense

Admin — Tue, 18 Jul 2006 17:43:29 GMT

There are some law firm expenses that can be lowered just by calling your existing vendor and asking for a lower price. Usually you can lower the cost further by changing vendors—vendors, I might add, that are virtually indistinguishable. Your phone service and other communication cost are at the top of that list.

If you haven’t re-negotiated for these services lately, do it now. With cutthroat competition in the communication industries, law firms can lower cost every time they return to the negotiating table.

Most providers require you to sign up for a certain amount of time for the best rates, but contracts beyond two years (three years absolute max) should be avoided. Some contracts now pass the savings to you if the vendor subsequently reduces their prices. In the cell phone industry, vendors start offering more minutes for the same price. Ask for that deal.

Regarding contract expiration or anniversary dates, vendors do not tell you when the minimum term has expired. Many count on their customers forgetting about the date so that the vendor can continue to charge older (higher) prices. Smart customers track contract dates and go back to the market with every opportunity.

Changing providers is no longer difficult, but you can get big savings without changing vendors. Don’t wait for your minimum period to expire. Simply tell the vendor’s representative that you are going to start shopping for lower rates unless they upgrade your current contract to give you more competitive rates now. That conversation will open negotiations for lower costs and a contract term renewal.

Communication cost can be significant in a midsized law firm. Look for opportunities to consolidate your wireless, long distance, high speed services, etc. under a single vendor who will give you the best price based on the consolidated volume. Firms with multiple locations may find it cost effective to connect those locations through dedicated links, eliminating long distance charges and providing clients with a single phone number for reaching attorneys and staff regardless of location. In addition, voice-over IP has reached a level of quality that is nearly indistinguishable from traditional voice services. For firms with heavy long-distance traffic, moving to voice-over IP may be worth it. At a minimum, begin experimenting with voice-over IP to determine its suitability in your environment.

Morepartnerincome.com is sponsored by Juris, Inc. For information about Juris® products and services for increasing law firm performance and partner income, go to www.Juris.com.

Make More Rain : disaster recovery, expense control

Take Advantage of Competition to Lower Law Firm Communication Expense