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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