TELECOMMUNICATIONS
Some cost-control experts caution that fancy promotions are simply "red herrings," distracting too many customers from rates, fine print and restrictions.

"They're a waste. There are loss leaders that pull people in," warns Arleen Kahn, president of AMK Associates, a Manhattan-based cost consultant to businesses on products and services. "They say '500 free miles, wow.' Then, you're locked into their rates. The important issue is rates–not percentage discounts or promotions."

Another important issue is whether the carrier bills in six-second increments or not. If it does, that means a fax or a brief message left on an answering machine will be billed for its length, not for a full minute.

EQUIPMENT LEASES
To derive the greatest benefits from leasing, Arleen Kahn, cost management specialist and president of AMK Associates, says business owners should limit the terms of the agreement to three years. Monthly payments will be higher, but the strategy will be to the business owner's advantage in the long run.

"If you have a five-year lease and after two years, you want to upgrade, downgrade or are dissatisfied, the balance of your lease would be too long and, hence, too costly for you or a vendor to buy it out." Ms. Kahn says. "That's why it's most advantageous to keep the terms of the lease as short as possible."

TRAVEL
A WELL-WRITTEN TRAVEL POLICY IS ESSENTIAL. It should tell employees whether they travel in business class or coach, whether the rental car is a sedan or a subcompact, and whether the hotel room is deluxe or a no-tell motel. It should also require that employees charge all expenses to a corporate credit card. The cards provide a spending summary that shows whether discount rates are being booked, plus volume information for future price negotiations and budget forecasting.

To be effective, though, the policy must be communicated to employees–and enforced. "If management is not committed to enforcing the policy, it doesn't matter what's said. Word gets around (that) it's loose," says Arleen M. Kahn, president of AMK Associates, a Manhattan-based cost management firm.

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