Need Help? (888) 742-5060

In The News:

On Renegotiating Contracts, Leases to Cut Costs

February 3, 2009

In today's conditions, everyone is looking for ways to cut costs. One of the recommendations made by experts is to renegotiate set contracts. (See what Alan Beaulieu had to say on the subject of renegotiation in Economic Forecast Places Start of Recovery in 2010.)
How realistic is this method in cutting costs? According to a recent article on, companies have been able to negotiate savings of up to 15% of their operating costs by renegotiating leases. If you're a good paying customer, there's a chance your suppliers will also give you a discount if you agree to terms that can also help them, such as paying in cash or with a check within a specified time period of delivery. But you have to ask for the change.

WSJ quotes a survey from the Small Business Research Board, that found that about 15% of respondents had renegotiated long-term fixed-cost supply contracts as of September 2008.

It comes down to a simple concept: Your suppliers and leaseholders would rather keep a reliable customer and continue getting paid than have to expend the resources on finding a new client without an already established relationship.


© 2019 Gale Media, Inc.

Please do not reprint MDM's content on your website without MDM's express permission as it is copyrighted material. To gain permission, email us, or call 1-888-742-5060. For information on PDF or print reprints, visit MDM welcomes inbound links from your site. Please cite Modern Distribution Management.

2018-top-distributors-listThe 2018 Top Distributors List

This free PDF includes lists of top distribution companies across 14 sectors.

You will also receive MDM Update, our daily distribution e-newsletter & other distribution-focused content.

Download the Free PDF now >>

MDM-UpdateMDM Update: Daily Newsletter 

Sign up to read the best source for news & trends in wholesale distribution, MDM Update. Delivered daily to your inbox. 

Sign-up for MDM Update >>

Post a comment to this article

Partner Center