On Oct 4, 2013, at 12:00 AM, RECMGMT-L automatic digest system wrote:

> From: Lori Lockwood <[log in to unmask]>
> Date: October 3, 2013 12:40:16 PM EDT
> Subject: Tips for reducing offsite storage costs - what would you add?


I would suggest as a base the ARMA Storage Contract as a beginning point but then review what your final language will be with at least three expert records managers.

In your language, define what the types of fees will be: 1) Storage, ($0.25 per box per month) Delivery of a box ($15.00) 2) Delivery of multiple boxes ($25.00) 3) Pick up of Boxes ($15.00) 4) Removal of a box for final determination or end of contract ($2.00 per box) 4) Require that upon end of contract, all boxes must be delivered within 30 days of end of contract. Any boxes not delivered shall billable at $10.00 per month until such boxes are returned. This will eliminate billing you for phantom boxes.

and; then specifically exclude now and forever: 1) Any Fee not included in above list 2) Providing a new box is not permitted [do this yourself so you can add proper label and any notes on the box. And so you can eliminate fraudulent fees in the future.] 3) Hostage fees are not permitted. See removal fee above. 4) Maintenance fees, annual inventory fees and all other fees are excluded.

Add a clause that states that adding such fees shall be cause for termination of the contract immediately. 

Add a clause that states that at the end of the contract, they must return all boxes in storage within 30 calendar days of end of contract or justifiable termination for cause. IT will now be in their best interest to offer you a better deal to stay such as offer you one month free rather than having to deliver all of your boxes back to you.

You will pay more for your box storage per box but the elimination of all these creative and often fraudulent fees that big guys add to their contracts out of the blue will save a great deal on the overall contract.

Records managers with control of their contract receive better service, more respect and are seldom made to look like a fool.  Hostage fees take away all of your power.  

If your storage company is bought out, then refuse to sign their contract.  Provide them your contract form with the terms above included.  If they refuse to accept it, then move your boxes immediately.

Case Study:  Bildozer Inc. offsite box volume is swept up in a merger. They fail to note the new contracts included Hostage Fees. Service was terrible. They tried to move but the vendor said 1000 boxes as $11.00 per box. Pay us $11,000 and you can go. They moved because their new vendor agreed to absorb the Hostage Fee and amortize it over a three year contract.  Their costs went up but service was good again.  Oh No! Big Bad Storage now bought the new vendor. The records manager failed to read the new contract and now had high storage fees and the new contract had a $15.00 per box Hostage fee.

Service was again terrible and the boss told the RM to find a new vendor. The independent guy could not afford to pick up the huge Hostage fee. Realizing the position they were in, the boss did the only thing he could think of.........fire the records manager who failed to develop a protective contract.

They say 80% of records managers allow the hostage fee to exist in their contracts. 

Recently I heard one storage company basically told the records manager, “We will not permit you to close the account!” 

If you really want to save money, negotiate a client friendly contract.

According to Hueymon (think Ponemon Institute but more real) “Records Managers working under a storage contract with Hostage Fees are 70% more likely to be terminated in a three year period than those records managers who eliminate them from their contract for storage."

Hugh Smith
FIRELOCK Fireproof Modular Vaults
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(610)  756-4440    Fax (610)  756-4134
WWW.FIRELOCK.COM


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