5 Ways Businesses Overspend on Technology

Spending money is not the problem. Overspending on things your company does not need is where the issues start.

1) Canโ€™t Print Money

Printer ink is expensive enough. There is no need to go overboard and buy too much or too little. Try something called a “Reservoir Printer.” The ink lasts a long time. You can purchase replacement bottles for $13 a piece. You can also buy a full set for $52. The printer is going to be expensive, but it saves you money in the long run. You also might want to leave the printer on. Every time you turn your printer off you trigger the maintenance cycle. That costs you an extra $100 a year.

You can also save money by buying ink products from a third-party or special delivery service. They can give you some great discounts.

2) Head in the Clouds

Your company might not be ready for the cloud. However, that does not stop companies from spending money on it. They spend money on something they do not need and are not ready for. Sometimes using the cloud does not make sense, in terms of functionality.

3) The IT Crowd

Paying for IT support is one thing. Spending too much on something you do not need is another. Some companies pay way too much money on something that is draining the budget. A recent study concluded that a lot of companies spend between 8-25% more than they need to with IT support. Make sure you are hiring the right vendors or the right people so that you don’t continue to waste money on unnecessary things.ย 

Two Things To Keep In Mind:

  1. A) Vendors use their annual renewal to increase their rates.
  2. B) A lot of companies still insist on buying a premium package when they are better suited for lower level packaging or using outsourced personnel.

Do you realize how much money you are throwing away by doing that? The negotiation process works better when you are making a large purchase or renewing a package you already have.

4) The Price is Right?

A lot of companies pick their vendors too early in the negotiations. They find someone they like and want to make a deal. That sounds great, in theory, but only in theory. You need to give them an incentive to lower their prices or to strike a bargain. Early commitments mean no competition. That is hardly an incentive for them to do business with you. Learn how to deal and negotiate with vendors for the best prices.

5) Resell your reseller

Your reseller is not your best friend. They are there to do business. This misplaced logic is costing you a lot of money in the process.

Yes, it costs money to save money. Sometimes though, you need to know where to draw the line. Dealing with your IT support team is like anything else, it takes some tough negotiations. Sometimes you need to be smarter than the technology to get the job done. You also need to pick the right time to close the deal. Otherwise, your spending will not be the only thing out of control.

Does the thought of negotiating for a better price sound like too much work? Want someone else to handle it so you can get back to focusing on growing your business? Contact me now and find out how I can help you.

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