Vendors take heed–savvy managers are starting to scrutinize their operating expenses with a narrowed eye. The big ticket items such as benefits and human resources went under the knife long ago. But, in the flurry of cost cutting, many smaller expenses went unchecked and these little things add up.

Enter Arleen Kahn, president of AMK Associates, a Manhattan–based cost management consulting firm. Kahn cannot tolerate waste, over– spending, or not getting the best deal. After performing an assessment, in a variety of areas, she has helped companies save as much as $300,000 per year by carefully evaluating both current vendors and alternative sources.

She saved Levy, Sonet & Siegel, a New York-based law firm, more than $6,000 a year simply by examining the value of its service contracts on office equipment. After all, she asked, how often does the equipment break down? And how much does a technician charge for an office visit? She estimated the law firm might spend an average of $150 annually to service a computer for which it was paying $275 per year for a service contract. Kahn also pointed out that because equipment becomes obsolete, it may be possible to put service contract dollars toward the purchase of new equipment. She says it is critical to analyze the importance of each piece of equipment to daily operations before even considering dropping a service contract.

Columbia Association, a recreations facilities management firm in Maryland, like many companies, had developed a comfortable relationship with the representative of its long distance carrier. It was happy with the carrier, its service and the price–until Kahn went shopping. She found another long distance carrier that bid the job at a savings of $2,400 per year. Once the current carrier was faced with the prospect of losing the account, it bettered the outside bid with a savings of $2,700 per year. It turned out that the vendor had not passed along its internal cost savings program to the trusting customer, who was only able to get the "deal" by actively pursuing it. Other areas Kahn recommends examining for potential cost savings include:

Office Supplies. People have a tendency to reorder what they know. Consider taking a risk on generic products. Generics, whether in drugs or in office supplies, can be identical in quality to the name brands. In fact, some of the Trademark brands produce no-name versions of their own products.

Printing Jobs. One new associate joins the firm and you order business cards. A week later, another associate puts in a request for more business cards. How many times a month do you order individual sets of printing supplies? "Bundling" these jobs will give you bargaining power to get lower printing prices.

Vending Machines. Are you getting reimbursed from the vendor for the rental of your floor space for these machines? Guess what? The vendor may be providing a service to your employees, but at your expense. You could be foregoing a fee that is rightly yours, and which can amount to $4,500 a year for soda and snack machines that are used by 100 employees.

Kahn knows that your in-house staff does not always have the time to examine every office expense area. Expertise plays a big part in knowing when the vendor is giving you the best deal possible. This is when you should think about contracting a firm like AMK Associates, who can reduce your overhead, thereby increasing your profits–and that's the "bottom line."

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