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Supplier fees – really?

Finsbury Green has witnessed other companies introduce ‘supplier fees’ within the print and managed services category which raises a couple of very important questions.

›    Is it acceptable for a print manager or BPO supplier to subsidise their fees to the client, by charging their supply chain a ‘supplier fee’ or ‘partner services fee’?

›    Doesn’t the client end up paying the same or more for the services sourced?

At Finsbury Green, we do not charge supplier fees. For us, there is a fundamental conflict of interests to do so, because our clients pay us for our services, not our suppliers.

By charging a supplier fee, a company can afford to charge the client a lesser fee. The perception is that the management fee is lower, but in reality the supplier increases their fee to compensate.

Awareness of a ‘supplier fee’ will allow companies to compare vendors on an ‘apples for apples’ basis, which is a simple principle that cannot be resolved without transparency.

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