Magazine article Journal of Property Management

Vendor Views

Magazine article Journal of Property Management

Vendor Views

Article excerpt

The property manager's responsibility is to delve into all of the factors when choosing vendors, and pricing certainly is one. As property managers negotiate services with vendors and contractors, the IREM Pledge and Code of Professional Ethics guides their actions.

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Let's take a moment to see what our vendors say about this issue. What is happening now regarding discounts? Have things changed? If so, has it changed for better or worse?

Are clients asking or pressuring for a special discount or deal?

When we last explored the issue, property managers were almost evenly split between "Yes, we do," and "No, we don't ask for discounts." At the time, the majority of vendors said that they were being asked for discounts more often than in years past, and most felt it would likely stay that way in the future.

They were correct. A recent survey of vendors found that the majority of managers do ask for a discount or ask that we sharpen our pencils--and certainly more so now than in past years.

So, vendors are asked more often than not, but that's what property managers are supposed to do, right? Provided they ask, rather than demand?

How were vendors asked for discounts in 2010?

According to vendors polled, the majority of property managers always made a request. These were the folks who let the vendor know that they must collect a certain number of bids, and thus, hoped the vendor could help out. When standard competitive forces are in play, such as in the bid process, virtually all vendors were certainly okay with being asked for a good price. …

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