You don’t get what you don’t ask for. . . .

You don't get what you don't ask for. . . .

You have just revised your annual budget for the third time and are looking for opportunities to further reduce expenses. From purchasing replacement bulbs to landscape maintenance, a large portion of your operating budget is likely tied up in purchasing products and services. Rethinking how you approach procurement in 2017 could have a profound impact on your budget performance.
 
In supporting national REITs, institutional investors, and private real estate portfolios, we have seen great diversity in how organizations approach procurement. From negotiating national vendor contracts to managing relationships with local vendors, there is no single approach that ensures competitive pricing. However, we have identified a few common procurement strategies that can be applied at both the property and portfolio levels to significantly reduce expenses.

Have you negotiated a good deal?

Many real estate companies leverage their purchasing power to negotiate contracts with regional or national vendors, who typically provide a percentage reduction from list prices and/or your current product pricing. The value proposition is quite compelling; availability of most everything you need, automated financial tracking, next day shipping. . . How do you know if you are getting a good deal?

  • First, understand your baseline. Are you currently purchasing products in volume? How much are you paying for convenience? What do you believe your competition is paying? Are the vendor list prices inflated?
  • Second, benchmark your costs. Identify the most commonly purchased products at your property or portfolio and compare your pricing with the open market. Start with a simple web search. If you are buying 1,000 or 20,000 air filters annually and are paying the same price as a-la-carte purchases at most online retailers, there is likely room for improvement.

It is a buyer’s market and vendors need your business. Take what you have learned and see if there is an opportunity to renegotiate. Even small pricing reductions on your most commonly purchased products can have a profound impact on your operating budget.

For volume or recurring purchases, pick up the phone

When reviewing your annual budget, identify volume and recurring purchases. Whether you need 200 LED bulbs for an upcoming retrofit or plan to replace a 100 R-22 HVAC units in 2017, pick up the phone and call your local or national vendor. Ask for more competitive pricing based on your anticipated volumes. And you do not need to move into the warehousing business. While discounts on single purchase volumes are typical, vendors will often extend discounts for anticipated purchases so they can retain your business. 

RFPs provide value for large and SMALL projects

Request for Proposals/Pricing (RFPs) send the message that you are seeking competitive pricing and others are bidding. They help ensure an apples-to-apples comparison of products and services, prevent scope creep, and can save you time and money in the long run. Although RFPs are typically reserved for large capital projects, they can provide significant value for smaller projects where vendor pricing is most volatile. In our experience, RFPs typically reduce project costs by 10-30%.

The business case

Whether building the value of long term holds or positioning properties for purchase, increasing NOI is a game of inches. Developing a strategic procurement plan and taking action can have a profound impact on budget performance and asset value. Picking up the phone, negotiating with your vendors, and embracing the RFP process are proven strategies that can help improve your financial performance in 2017. You don't get what you don't ask for.

114 thoughts on “You don’t get what you don’t ask for. . . .

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  • The Zune concentrates on being a Portable Media Player. Not a web browser. Not a game machine. Maybe in the future it’ll do even better in those areas, but for now it’s a fantastic way to organize and listen to your music and videos, and is without peer in that regard. The iPod’s strengths are its web browsing and apps. If those sound more compelling, perhaps it is your best choice.

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  • Sorry for the huge review, but I’m really loving the new Zune, and hope this, as well as the excellent reviews some other people have written, will help you decide if it’s the right choice for you.

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  • The Zune concentrates on being a Portable Media Player. Not a web browser. Not a game machine. Maybe in the future it’ll do even better in those areas, but for now it’s a fantastic way to organize and listen to your music and videos, and is without peer in that regard. The iPod’s strengths are its web browsing and apps. If those sound more compelling, perhaps it is your best choice.

  • The Zune concentrates on being a Portable Media Player. Not a web browser. Not a game machine. Maybe in the future it’ll do even better in those areas, but for now it’s a fantastic way to organize and listen to your music and videos, and is without peer in that regard. The iPod’s strengths are its web browsing and apps. If those sound more compelling, perhaps it is your best choice.

  • Zune and iPod: Most people compare the Zune to the Touch, but after seeing how slim and surprisingly small and light it is, I consider it to be a rather unique hybrid that combines qualities of both the Touch and the Nano. It’s very colorful and lovely OLED screen is slightly smaller than the touch screen, but the player itself feels quite a bit smaller and lighter. It weighs about 2/3 as much, and is noticeably smaller in width and height, while being just a hair thicker.

  • I’ll gear this review to 2 types of people: current Zune owners who are considering an upgrade, and people trying to decide between a Zune and an iPod. (There are other players worth considering out there, like the Sony Walkman X, but I hope this gives you enough info to make an informed decision of the Zune vs players other than the iPod line as well.)

  • I’ll gear this review to 2 types of people: current Zune owners who are considering an upgrade, and people trying to decide between a Zune and an iPod. (There are other players worth considering out there, like the Sony Walkman X, but I hope this gives you enough info to make an informed decision of the Zune vs players other than the iPod line as well.)

  • Zune and iPod: Most people compare the Zune to the Touch, but after seeing how slim and surprisingly small and light it is, I consider it to be a rather unique hybrid that combines qualities of both the Touch and the Nano. It’s very colorful and lovely OLED screen is slightly smaller than the touch screen, but the player itself feels quite a bit smaller and lighter. It weighs about 2/3 as much, and is noticeably smaller in width and height, while being just a hair thicker.

  • This is getting a bit more subjective, but I much prefer the Zune Marketplace. The interface is colorful, has more flair, and some cool features like ‘Mixview’ that let you quickly see related albums, songs, or other users related to what you’re listening to. Clicking on one of those will center on that item, and another set of “neighbors” will come into view, allowing you to navigate around exploring by similar artists, songs, or users. Speaking of users, the Zune “Social” is also great fun, letting you find others with shared tastes and becoming friends with them. You then can listen to a playlist created based on an amalgamation of what all your friends are listening to, which is also enjoyable. Those concerned with privacy will be relieved to know you can prevent the public from seeing your personal listening habits if you so choose.

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  • I’ll gear this review to 2 types of people: current Zune owners who are considering an upgrade, and people trying to decide between a Zune and an iPod. (There are other players worth considering out there, like the Sony Walkman X, but I hope this gives you enough info to make an informed decision of the Zune vs players other than the iPod line as well.)

  • Between me and my husband we’ve owned more MP3 players over the years than I can count, including Sansas, iRivers, iPods (classic & touch), the Ibiza Rhapsody, etc. But, the last few years I’ve settled down to one line of players. Why? Because I was happy to discover how well-designed and fun to use the underappreciated (and widely mocked) Zunes are.

  • Hands down, Apple’s app store wins by a mile. It’s a huge selection of all sorts of apps vs a rather sad selection of a handful for Zune. Microsoft has plans, especially in the realm of games, but I’m not sure I’d want to bet on the future if this aspect is important to you. The iPod is a much better choice in that case.

  • Zune and iPod: Most people compare the Zune to the Touch, but after seeing how slim and surprisingly small and light it is, I consider it to be a rather unique hybrid that combines qualities of both the Touch and the Nano. It’s very colorful and lovely OLED screen is slightly smaller than the touch screen, but the player itself feels quite a bit smaller and lighter. It weighs about 2/3 as much, and is noticeably smaller in width and height, while being just a hair thicker.

  • The Zune concentrates on being a Portable Media Player. Not a web browser. Not a game machine. Maybe in the future it’ll do even better in those areas, but for now it’s a fantastic way to organize and listen to your music and videos, and is without peer in that regard. The iPod’s strengths are its web browsing and apps. If those sound more compelling, perhaps it is your best choice.

  • The new Zune browser is surprisingly good, but not as good as the iPod’s. It works well, but isn’t as fast as Safari, and has a clunkier interface. If you occasionally plan on using the web browser that’s not an issue, but if you’re planning to browse the web alot from your PMP then the iPod’s larger screen and better browser may be important.

  • The Zune concentrates on being a Portable Media Player. Not a web browser. Not a game machine. Maybe in the future it’ll do even better in those areas, but for now it’s a fantastic way to organize and listen to your music and videos, and is without peer in that regard. The iPod’s strengths are its web browsing and apps. If those sound more compelling, perhaps it is your best choice.

  • Hands down, Apple’s app store wins by a mile. It’s a huge selection of all sorts of apps vs a rather sad selection of a handful for Zune. Microsoft has plans, especially in the realm of games, but I’m not sure I’d want to bet on the future if this aspect is important to you. The iPod is a much better choice in that case.

  • Zune and iPod: Most people compare the Zune to the Touch, but after seeing how slim and surprisingly small and light it is, I consider it to be a rather unique hybrid that combines qualities of both the Touch and the Nano. It’s very colorful and lovely OLED screen is slightly smaller than the touch screen, but the player itself feels quite a bit smaller and lighter. It weighs about 2/3 as much, and is noticeably smaller in width and height, while being just a hair thicker.

  • The new Zune browser is surprisingly good, but not as good as the iPod’s. It works well, but isn’t as fast as Safari, and has a clunkier interface. If you occasionally plan on using the web browser that’s not an issue, but if you’re planning to browse the web alot from your PMP then the iPod’s larger screen and better browser may be important.

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  • En cuanto a aparatos de aire acondicionado el sistema invertir de ahorro energetico es ya una tecnología habitual en la climatización de los hogares tanto en aires de tipo splits conductos. Como siempre en Electro Asistencia como servicio técnico de electrodomésticos Madrid y Toledo nos gusta mencionar las características de los electrodomésticos que mencionamos de cara a su durabilidad como hacer frente a posibles averías.

  • Nuestro servicio técnico de lavadoras, servicio técnico de frigoríficos, servicio técnico de lavavajillas, servicio técnico de cocinas y hornos, servicio tecnico de aire acondicionado servicio tecnico de termos, están disponibles de lunes a viernes de 9:00 a 19:00 h y sábado de 9:00 a 14:00 h en la reparación de electrodomésticos. Nosostros somos servicio técnico de lavadoras y estamos listos para la reparación de sus electrodomésticos en Madrid y alrededores el mismo día de la solicitud. La reparación de electrodomésticos en Madrid se realizara en el domicilio del solicitante del servicio, realizando previamente un analisis del aparato y luego decirle lo que le costará para su aprobación.

  • I currently am running 2 blog sites, one is for layout & development as well as I have a pagerank of 4 on it and I have lots of good posts. As well as I have an additional blog site where I have rants, wellness pointers and photography … Should I merge them or should I maintain it seperate?.

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