Can you control fees? Certainly, here's how you can do it: First of all, remember, "Nothing is EVER free." This is business. Every provider has a profit model. They all have targeted markets determined by size of plan assets, size of participant pools and, most commonly, size of the average account balance. If you fit their target market, you're on the first step to success.

"Great," you say, "how do I find that out?" Start with a simple question: "Are we in your 'sweet spot'?" (I hate the phrase "sweet spot" but everyone seems to use it so, hate it or not, go with it! At least they'll know what you mean!)

Over the years I've learned that providers, or vendors, know where they fit; where they can compete and make money; what kind of plans they prefer. Some will tell you straight out, "You're too small (or, more rarely, big) for us." Great! Don't be offended. They've just done you a favor. It's when you're told, "You're just the right size" that the real work begins.

There is no absolute, standard pricing for 401(k)s. The range can be tremendous and, no matter how unprepared you may feel, or how comfortable a vendor makes you feel, you have to thoroughly analyze each with the competence and judgment of an expert in the field. That's ERISA's "expert standard:" For you, a major event; for me, an everyday task.

Recently, a plan with $2 million in plan assets, 40 participants and a nice average account balance of $50,000 had a problem: Due to an acquisition, they were about to have a dramatic increase in eligible employees they feared would make their costs balloon out of sight. They'd contacted a couple of the big names on their own who confirmed their fears. Not sure what to do, they called a colleague who, in turn, called me.

We contacted ten providers, using a proprietary system we call "90-10-10" (more on this in my next column), including their current provider. We went "blind," meaning we didn't tell the vendors the name of the plan. As often happens, that provider, like several competitors, came back to us with much lower pricing: Waiving all conversion and installation fees, cutting recordkeeping cost by 25%, guaranteeing broad enrollment and education support. In short, based on how we presented this plan to them, they knocked off thousands of dollars in fees and promised to provide resources they hadn't offered before. Were they the lowest bidder? No, but they came pretty close and, had the sponsor been willing to tango, we would have had two or three ready to fight for their business. It's a nice place to be.

Knowing the "sweet spot" is helpful. Knowing how to position your plan, and how to play vendors for their best package, is necessary as well. Next, we'll lay out a process that works for us and can work for you. We call it "90-10-10."

The accuracy and completeness of this article are not guaranteed. The opinions expressed are those of the author(s) and are not necessarily those of Wachovia Securities or its affiliates. The material is distributed solely for information purposes and is not a solicitation or an offer to buy any security or instrument or to participate in any trading strategy.

Edward M. Lynch, Jr. is a Senior Vice President - Investment Officer with Dietz & Lynch Financial Strategies Group of Wachovia Securities in Newburyport, Massachusetts. For more information, please call Mr. Lynch at 877-609-8476. Wachovia Securities, LLC, member NYSE/SIPC.