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Unlocking Value in Offsite Storage

Unlocking Value in Offsite Storage

January 17, 2024

It is important to think about many things when managing storage solutions for your business. That includes what happens after a contractual relationship expires.In this, third of a series of articles that are designed to assist businesses in their storage needs, we will delve into post-contract considerations.

Understanding how to manage contracts before during and after is vital to effectively reducing your business’ storage costs.

After the contract ends

Have you ever wondered what happens when your offsite storage contract comes to an end? It's common for people to assume that all obligations cease once the contract's term expires. However, it's crucial to delve deeper into your agreement to understand the true implications.

Look at the clauses

Typically, your agreement will contain clauses stating that if you continue to store boxes with that vendor, the terms and conditions remain in effect. Moreover, there may be provisions allowing the vendor to raise rates even after the contract term concludes.

You are responsible

So, what does this mean for you? In essence, if your items are stored with an offsite storage vendor, a contract is still in force. Until you transfer your boxes to another vendor or arrange for their destruction, you may be responsible for fees associated with removal, including the potentially significant permanent withdrawal fee.

Terms remain after the contract

Two important takeaways emerge in contracts with these clauses. First, your contractual responsibilities extend beyond the contract term, and, secondly, the pricing may not remain fixed after the contract concludes.

What are your options?

Any organization can request services from an offsite storage vendor through a Request for Proposal (RFP) process. Within this process, your organization has the freedom to define your contractual terms and conditions, including specifying fees and outlining obligations for both parties once the contract term expires.

Do you align?

While smaller organizations may face challenges when negotiating with larger vendors, it's worthwhile to explore whether your organization belongs to or aligns with similar entities that may already have established agreements with offsite storage vendors. These existing agreements may offer more favorable terms and pricing that your organization can leverage in its contract.

Always read the fine print

In conclusion, conducting thorough research and carefully reviewing the fine print is essential to ensure that your organization isn't at a financial disadvantage.

Remember that not all offsite storage agreements are created equal, so it's wise to shop around to secure the best deal.

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