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ADP Discounts

Please let me know if this is not an appropriate venue to discuss this.

Currently I have negotiated ADP to give us a 15% discount to almost all fees. In addition to this I get a few additional service, Reportsmith & EZLabor at a reduced priced.

The new company we've aquired has a 30% discount, but they don't utilize any of the additional services we do.

I'm curious what discounts other companies are receiving, if you're able to curb some of those ever increasing fees. We had a 5% across the board increase in late 2009 or early 2010. The real big expense with ADP is EZLabor for us. Typically the cost for EZlabor is three times the other combined fee's and I just can't get them to budge any lower.

Thoughts?

Comments

  • Before I worked in payroll support at ADP, I worked in the billing department. I used to be one of the people that you spoke to about lowering your bill.
    The cost of service depends on a number of factors.

    First one is the sales rep. They have to meet monthly quota's for business. If it's the end of the month you will get a better deal with the rep because the sales manager will authorize a larger discount to close the deal before month end. The larger your company is the more room you have to negotiate a discount.

    Price increase happens every year. Each region raises the pricing for all services. Then each region is allowed to "make allowances" and freeze pricing or offer discounts for client's that are going to leave. They look at what your pricing was when you came in, annual revenue, how much your pricing has increased since you started, etc. They also look at the cases that come into client services and see if you need a lot of support or just call once in a while. If you are under, haven't had a price increase in a while or have heavily discounted packages then they are not going to do anything for you. It will also depend on who you are speaking with in the billing department. Sometimes I would be on the phone with clients and they were really getting hosed. I would look at all their services, switch them to a bundle package. That cut costs for the client and I looked good to them, but I was also giving features at regular price so I wasn't affecting the regions % that costs could be cut.
  • The issue of discounts is a tricky question because ADP bills in a variety of ways but most is tied to the cost per pay.

    Let's say I get a 20% discount. ADP says the rate is 2.00 per check and they will give me a 20% discount to a rate of 1.60 per pay.

    The next salesman says we are going to give you a 30% discount. Says rate per check is 2.50 and you get a 30% discount or a rate of 1.75.

    I also worked at ADP for several years trying to get clients to believe the rate we were offering them was an outstanding deal.

    Since I have been on the other side of the fense, I cannot tell you how many times a sales person flat out gave bad information on what they could our could not do regarding pricing. Depends on your sales person on whether he wants to give you a break or not.
  • When I worked for ADP every office set pricing for the thier market and could give what ever discounts top management would allow.

    It was a high pressure envionment. Salesman would projectile vomit before a weekly sales meeting if they had no sales to put on the board.