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A law firm management's primary focus, like most professional service firms, is new business, billing a high percentage of partners' and associates' time and, of course, collecting a high percentage of billings. Under pressure to increase revenues and grow the bottom line, executives often overlook smaller firm overheads such as office supplies and related items, printing, stationery, overnight delivery, telecom and copiers.
The truth is that management just does not have the time or resources to regularly review expenses and reduce these costs. Expense reduction often falls “under the radar.” It does not matter that the firm re-bills its clients certain costs; attention to reimbursables has increased in recent years, and it remains the responsibility of the firm to manage these costs as if they were its own.
Moreover, management might lack the necessary knowledge of the marketplace to make such cost cutting initiatives effective. The supplier possesses this knowledge, putting the buyer and the company, at a disadvantage. The so-called “best deal” might in fact be anything but.
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