> From: "Roach, Bill" <[log in to unmask]>
> Subject: Re: Storage increase of 20%
> Date: February 20, 2014 at 5:50:20 PM EST
> 
> 
>>> I have learned that you must always make sure to note when a contract is up and to never let a contract automatically renew.<<
> 
> My experience has been the opposite.  I always work to include an evergreen clause in the contract.  Opening up an offsite storage contract enables big changes to be made, usually not by the customer.  The evergreen clause enables the contract to continue in force using the existing terms.  

The reality is……….whoever writes the contract and writes the specifics of the Evergreen language will be the winner on the renewal.  Unfortunately, most of these contracts are put in place by a Purchasing officer who has never dealt with the realities of the offsite storage industry.  Even the legal department who knows the ins and outs of contracts does not understand the specifics of the industry.  

Unless the records manager with those specific skills sits down with Legal and Purchasing and explains the pitfalls that can turn a good deal into a bad deal, they simply will be unprepared for the chicanery that is part of many vendors business plan.  (Hostage Fees are described as Permanent Out Fees, the automatic renewal that actually kicks in 6 months before the actual end of contract date or maybe in some cases 3 months and locks you into a new contract renewal before you knew it, the absolute ability to change your fees schedules and add new and previously undefined fees at their option.)

Who could forecast that a vendor would arbitrarily rebox your records and charge you $9.00 per box or more to reside in these new boxes.
Who would have predicted permanent removal rising from $2.50 per box in 2000 and by 2013 you would pay the vendor $15.00 per box. Odd since wages have gone up minimally since the year 2000. 
Who would have forecast that if enough records managers in a certain market were smart enough to move to a vendor who offered good service and non-restrictive fees, that the unethical vendor with all the tricks would come in and buy them out of the market place so the clients have no possible choices. (That is why IBM, Google and others see “The Cloud” as such a gold mine. I think if anything drives the “Paperless Office” it will be the poor treatment corporation receive from some of the vendors.  In a free market, you could move to the better provider but hostage fees have ruined this industry. )

Mr. Roach is in the minority on controlling his account by controlling the contract. 


Hugh Smith
FIRELOCK Fireproof Modular Vaults
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