It’s becoming an all too familiar tale, office supply chain stores overcharging institutional buyers. The days of long-term, poorly monitored, contracts need to end if institutional buyers are serious about reducing costs. As our customers know, we are on average 20-30% cheaper than the leading chain stores. One customer wrote yesterday saying that we were 75% cheaper for an item they were buying from Office Depot. I shudder to think how much more they would have been paying if they were also tied in to a contract.
Palo Alto could have saved between $196,484 and $389,426 by more closely monitoring its multi-year office supplies contract with OfficeMax Inc. to ensure it was receiving “reasonably expected discounts at authorized prices,” according to a new audit released Wednesday evening.