On Feb 6, 2008, at 12:01 AM, RECMGMT-L automatic digest system wrote:
> Date: Tue, 5 Feb 2008 16:27:15 -0600
> From: "Allan, Liz" <[log in to unmask]>
> Subject: Re: Avg. Cost offsite storage vs. onsite
>
> Doug -- well, that's my point. If I'm off in my calculations, please
> tell me where. And if I'm not off, then the statement regarding the
> cost to image 300 boxes is misleading. If it cost only $40 a box, I
> could finally get my husband to clean out his files in the garage and
> park my car there again!
>
> re: 2600 pages per box, I'm figuring 175 pages/inch and a standard
> storage box of 15" - usually boxes sent to storage are packed pretty
> full.
>
> Liz
I merely used Pat's number of 2,000 pages per box which I think is
based on past discussion on the Listserve about what is reality on
offsite storage.
I also used Pat's numbers for imaging even charging for imaging both
sides of a page. I personally never type on the back page of any
document but to be consistent I kept that calculation in the mix.
> Storage:
> 10,000 boxes @ $0.15 per box = $1500 per month x 12 months =
> $18,000 per
> year
If you publish an RFP and state you are going to deliver 10,000 boxes
to someone then you will see this rate.
You will not actually pay this rate, as there are all sorts of fees
and the rate will jump up next year considerably but what can you do?
You let them put in a Hostage Fee so you are stuck. If you examine
the contracts you will find the $7.60 divided up in 7 different fees
so you need to read carefully. (Data Base Close Out Fee, Final
Inventory Fee, Palleting Fee, Shrink Wrapping Fee, Final
Administration Fee, Account Reconciliation, and then Permanent
Removal Fee.) They all amount to what was known years ago as
Permanent Out Fee but by breaking it up you can in some cases really
dumb companies find it as high as $15.00 per box. If you are a
hospital give yourself a pat on the back, you lead the league and
then in the Silver Medal is banking and legal firms follow as the
bronze. There is a direct correlation in the total fees to the
dumbness and or arrogance of the client.
Pull out your contracts now and start counting and you can check your
IQ versus your national contract players IQ? Feeling low? Might be
time to check out the Contract Guideline form that Larry Medina keeps
alerting everyone to. It is available from ARMA before you sign your
next contract.
But you are missing the point that whatever the rate is for
digitizing a document you don't need to do it, if it was born
digital. The expensive thing is if every document you create in your
vast array is printed to paper so you can have a paper copy. That is
where the waste comes in. Emails, spreadsheets, and a host of other
documents never need to see the light of day beyond the computer screen.
For example with FIRELOCK: An email comes in asking about a quote on
a vault for a project, a quote goes out via email, discussions occur
back and forth and the email thread grows. The client decides not to
go. It all stays in the server in case they call back in three
months desiring to move forward.
But XYZ decides he/she is ready to proceed. A contract is emailed.
The client emails an approval and we start design drawings. In a few
days they have printed my contract, signed it and mailed it in. After
50 pages of dialog a 3 page contract and a check arrive and are put
in a file. The client is emailed Engineering Drawings, they email an
approval or a change and we move forward to build a vault. How much
paper is put in a file folder? Three pages and One drawing. More
emails follow during manufacturing and construction and shipping and
install. How many pages of information are created? Over 100 on
average. How many pages in the file folder as hard copy? 4 pages.
If you add in all the chatter back and forth in house to design, bill
and so forth, our average is better than 97% digital. So is all of
your paper coming from outdated methods or a desire to reign over a
paper empire? Even the signed contracts exist in the digital
records. They only exist to hold a real signature.( I don't yet
trust digital signatures.)
But the question is: Did I win the argument that weighing the
argument of offsite versus onsite as a cost justification argument is
a poor way to run a records management program?
Or more importantly have you signed on to the Crusade to strike
Hostage Fees from your contract? There are several experts among you
that can tell you how they did it. There are several great
consultants here that have helped their clients strike them from
their contracts. They are illegal as they are Restraint of Trade. No
other industry charges you for not shopping there or not continuing
to do business with them. I have seen no court cases that uphold
them and when a threatening letter from your legal counsel arrives,
the fees are typically renegotiated as no one really wants a Judge to
issue a ruling. Remember Butzel Long and GE? Did they go to court?
There are hundreds of Owner managed paper storage and media storage
companies out there and they will store records without these fees.
Then you will be back in control of your quality of service. Then
maybe records management could be in the news for something good.
Does anyone disagree with that?
Hugh Smith
FIRELOCK Fireproof Modular Vaults
[log in to unmask]
(610) 756-4440 Fax (610) 756-4134
WWW.FIRELOCK.COM
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