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The Bottom Line

The continuing explosion in online retail sales was one of this holiday season’s major headlines. While there has been plenty of debate over its impact on shopping malls and other brick and mortar outlets, another downstream effect is rarely discussed—one that can be seen on your curb every recycling day.

Vendor contract amendments can look simple and harmless – a brief paragraph, perhaps up to two pages, addressing some routine items. They often even include an upfront payment to recompense for your troubles, an unexpected “bluebird” that might help offset the inevitable budget worries. Don’t be lulled into complacency. These few sentences can carry significant implications and should be inspected just as closely as your original vendor contract.

For anyone working at a company with a calendar-based fiscal year, chances are that department heads are being asked to “do more with less,” or at least to increase output at a faster rate than costs. As anyone with budget responsibility knows, it’s no easy task to fund realistic pay increases for appreciated employees let alone accommodate growth in other expense areas.