SAMI VE LLC announced today a plan to move their main offices from Evergreen Colorado to the Franklin Pennsylvania region. For the last 31 years, SAMI has been based in Colorado (they currently have 11 offices but the main office is in Evergreen). "In the past, this has not been a problem and we have loved living in the Rocky's. However, since 9/11, the cost of travel, in both time and money has been increasing. In a value study of the organization, it was noted that over 80% of SAMI clients were located in the Northeastern section of the US. An analysis of the client base indicated that over 60% were located within a five hour drive of western Pennsylvania." said Sam Martin, President of SAMI VE LLC.
Travel time and billable losses a factor
SAMI VE LLC stated they noted that since the Stapleton airport was closed, due to the opening of the DIA airport, that travel times increased by more than two hours each way. Upon 9/11, the added security measures has caused additional time loses of two hours each way, sometime more with missed flights not being that uncommon. SAMI noted that added time of 3-4 hours per direction represented a cost of $300 to $600 in billable time per person, or up to nearly $2,000 per client consultation.
Travel costs another factor
Due to parking, flight costs, and other factors, SAMI VE LLC also stated they noted that the cost per consultation for the client had significantly increase. Two factors were mentioned: 1. air fare rate structures appear to have changed from early purchase discounts to last minute discounts. Thus, since SAMI personnel MUST arrive on time, the cost of airfare has been increasing, and 2. seat size has been decreasing which reduces or negates the amount of work that can be done in travel status, thus upgrades to business class are becoming a necessity to allow work to be done by staff in transit. SAMI noted that if staff cannot work while in route to the clients location, an added time of 4-6 hours per direction represented a significant cost addition for each client consultation.
Stability of bids also cited
SAMI noted that recent bid estimates have climbed, potentially scaring off clients. SAMI noted that recent major costs for car and airfare have dramatically varied for the same site and times. "At one location, we had a car rental fee that varied from a low of $133 to a high of $500 for the same client job, and a low of $500 airfare for two people to nearly $3,000 for the same client's job. Since cost must be recovered, this has placed some bid estimates at over $2,000 more than that actually expected (to ensure costs are recovered). This scares some clients as the estimated travel costs can be half the estimated labor." said Sam Martin. SAMI stated that it expects that by adding a local nearby office to most clients, and adding a location charge that recovers the cost of the location and support features, that both bids and actual costs for SAMI clients will be reduced.
SAMI VE LLC notes satellite offices
Since 2002, SAMI VE LLC has been implementing a "satellite office concept" which involves installing support offices, lodging, and vehicles at locations that has historically involved significant previous client activity. The stated purpose was to reduce cost to client and increase local capacities for major clients. SAMI VE LLC pointed out that this planned move is another step in this effort, and is another example of how the value process can benefit both a business and its clients.
SAMI VE LLC Colorado clients expected to not be affected
Since SAMI VE LLC plans to maintain a Colorado satellite office, no major affect on Rocky Mountain clients is expected.
About SAMI VE LLC
SAMI is a value consulting firm with over 31 years of successful assistance to our clients. SAMI VE LLC was founded in 1973. For further information, visit www.samive.com.
