Expense reduction should NEVER be accomplished by lowering the expectation of quality for products or services rendered. Instead, cost reduction must aim at the elimination of wasteful elements in normal business operations. It is a continuous process of critically examining various elements of costs and each aspect of the business (i.e. procedures, methods, products, vendor, and supplier management including financial planning, analytics, and ongoing monitoring of agreements and contracts.)
Some businesses are concerned that conducting a business cost reduction analysis might damage their relationships with existing suppliers. The better you understand the marketplace, bench-marked deliverables, and vendor standards (pricing-terms-conditions-clauses), the closer you can manage the expectation of those deliverables raising the vendors’ quality and accountability. It is indeed possible to cut costs and improve delivery while strengthening relationships with trusted suppliers.
To seek rate reductions from current providers, you must do so in a positive manner.