LAS VEGAS— The resounding message from panelists at a recent HD 2002 seminar on how to create a five-star look on a three-star budget was that purchasing agents could help owners and developers stretch their projects dollars farther and help keep costs down within a tight budget. Thus, they said, owners/developers shouldnt be so quick to cut them out of the development process when times get tough. Bill McBain, partner, Benjamin West LLLP, said that, “Purchasing is more than just getting FF&E for the lowest price.” According to Michael Orloff, evp, The Stroud Group, owners/developers should look at how much it would cost in time and money for someone in-house to manage the purchasing process versus how much it would cost to hire a purchasing agent who oversees the same details everyday for many clients. “It may cost you the same as or more to have someone in-house than to hire a purchasing agent,” Orloff said. “Were a full-time business; this is full-time job. When it gets fragmented [by having some in-house handle certain aspects], the process is not as smooth,” said Pam McMahon, managing director, HDP International. Plus, said Laurence Benjamin, president, Benjamin Brothers, purchasing agents work with a variety of vendors on a daily basis, and can offer aggregate buying power a single owner/developer may not be able to get on his/her own. “We have a leverage over price or availability of a product. We can perform value-engineering and supply-chain management to get the cost down,” said Orloff.
