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In The Know
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Budget
 

Doing a cost analysis before making your purchase is obvious, but have you considered the hidden costs? These extra expenses can quickly eat away the healthiest of budgets.

One such extra cost is freight. In this case freight is the cost charged by the manufacturer to make one drop off of product to a specified location (the dealer's warehouse or directly to a job site). Some manufacturers do not charge freight, yet you will often see this charge as part of your dealer's quote. These charges can be negotiable if your order is large enough, or if you are a regular or contract customer.


Trick: If freight volume and associated costs are significant, it may be worth your time to do some comparison-shopping. Find out the total weight of the product, its origin and destination zip codes, and if possible, freight class. Then call a common carrier (Red Star, Yellow Freight, etc.) and ask for a freight quote.

Delivery is another factor in your furniture budget. This is what the dealer will charge to deliver the furniture from their warehouse to the installation location. Although delivery is a legitimate cost, be cautious. Determining delivery charges to a client is sometimes not a matter of cost but rather the desire for additional profit margin. Try to negotiate. Don't forget that overtime deliveries (deliveries after 5 PM or on the weekend), cost at least 50 % more than straight 9 - 5 PM deliveries.

Trick: Although many buildings only allow for deliveries on overtime (before 8AM, after 5 PM, and on weekends) reserve your elevators during the day. For that matter, don't forget to reserve them for the evening if that is when you're forced to accept delivery. An exceptionally long delivery is subject to additional charges from the dealer.

Installation is the most common way to far exceed a project's estimated budget. If possible, installation should never be performed on overtime. If your building allows you to use non-union labor, inform your dealer. Non-union labor can significantly reduce the cost of union installations. Try to have an office handyman, or building maintenance man put together small items like bookcases, or doors on cabinets, bases on tables etc. Experienced installers should always install systems.

A dealer may quote you a complete price inclusive of installation when quoting on your furniture project. This practice is acceptable, especially for smaller purchases. In the case of larger installations (those that can take from 1 day to a number of days), it may behoove you to consider being billed by actual man-hours.

Tip: If you think it best to pay an all-inclusive price, make sure you are asked to sign an installation time sheet by the installer at the beginning and end of each install day. Use the time sheet data to compare with charges on your installation bill to make sure you are not being overcharged. You would be amazed at the errors that can occur. Demand pre-approval of all installation costs beyond the scope of the main project in order to avoid surprise charges like waiting time, or a double handling fee. Always ask to be billed for actual man-hours if the project warrants it.

The other service people you've hired to perform construction, painting, carpeting, phone and computer installation can cause costs to escalate. If your area is not free and clear for the furniture delivery and installation people to carry out their duties they will bill you for down time. When dealers make deliveries they want to place the furniture in the exact space in which it will be installed. If they are forced to move furniture from one area or floor to another, they may charge a "double handling fee".

Make sure to have electricians at the ready when using electrified panels. Some systems require that the electrical connections be made as the panels are being constructed. Delays mean extra charges. Often times a site is not ready for furniture, but circumstances are such that you are forced to receive delivery. If your space still needs to be painted, or light fixtures installed etc., your furniture is likely to be damaged. Repair costs can be exorbitant, so be careful. It is almost impossible to prove how and by whom the furniture was damaged, and to recover the cost of repair.

Tip: cubicles.com delivers competent and reliable service personnel. Our foreman, delivery personnel, carpenters, and varied service personnel are all highly skilled and are committed to performing to their utmost capabilities. Why not consider cubicles.com for all your furniture and installation requirements.


    cubicles.com is mindful of all the seemingly insignificant expenditures, which can erode your budget. We have devised ways in which you can save your company both time and money. By simply deciding to sell us your existing furniture (if you are upgrading) you've already eliminated many of the costs and delays associated with furniture removal. Also consider that the cost of knockdown, removal and disposal of existing furniture will exceed what the furniture will fetch on the secondary market. By selecting our pre-utilized As Good As New furniture for your project, you will reduce your furniture expenditure by as much as 75%.


Continue: Scheduling

 
 
 
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