When reviewing proposals and quotes for new (or replacement) office furniture, facility, asset managers and some others are often inclined to choose the most inexpensive solution that addresses all the needs and function.
At face value that can seem sensible: Why pay more than you must for workstations, desks, benching, conference room and seating? Why not choose the least expensive product as long as there is a belief it will meet requirements.
In a world of budget limitations and cost containment, financial extravagance is seldom appreciated by Executive Management or, the CFO.
Demonstrating an ability to be cost effective when implementing a fit-out or refurbishments can be perceived as an indicator of smart negotiation skills and managerial competence.
Yet, counter intuitively, investing more upfront can actually deliver long term financial and productivity benefits
The true Total Cost of Ownership (TCO) must also consider items such as freight charges, taxes, special handling, packaging, delivery, installation and set-up. Even the term “Delivered Price” can mean many things.
Will the shipment be drop shipped at your loading dock? Will you require inside delivery? Are the installation services union or, non-union? Are there special insurance requirements? Is the delivery or installation performed on overtime? It is important to factor all of these items into the total cost when making a purchasing decision.
Be sure to review and compare Warranties as well. Hopefully, you’ll never need them but if you do, its smart to know upfront what is covered and for how long.