Download - Five Places to Find More Profits This Week
Five Places to Find More Profits This
WeekA Practical Guide to Saving Money and
Building the Bottom Line for Study Group Members
Most companies focus on raw material or high-dollar expenses, yet good savings exist in routine purchases
Few companies define specific expense areas and systematically review supplier expenses
Creating a program of regular cost review by category, or using external consultants to help, can yield quick additions to the bottom line
Ben Franklin was wrong … a penny saved is worth 6 to 10 pennies earned
Facts of Life
Review Waste Disposal Contracts Review Merchant Services Contracts Review Utility Bills for Errors Review Cellular Bills for Savings Review Janitorial Supplies and
Paper Consumables
the savings can really add up!
Five Ways to Save Money Fast
Read contracts to determine expiration dates and termination notice required
Send letters to providers (certified mail) to announce intentions to rebid contract
Look for opportunities to consolidate multiple locations with one provider and seek multiple bids
Not recycling cardboard? It may be a revenue stream to offset waste costs
Target Savings – 8% to 15%
Review Waste Disposal Contracts
Review contracts for expiration dates Seek out multiple bids focused on
ancillary charges as well as base rate Look for providers with master
agreements from credit card companies rather than resellers
Target Savings – 10% to 15%
Review Merchant Services Contracts
Review electric and gas bills for accuracy of meters in use
Check for time of date tariffs for 24/7/365 locations to save money
Schedule reviews with utilities to analyze charges and rates in regulated states
Get bids from energy brokers in deregulated states if you haven’t already done so
Target Savings – 5% to 10%
Review Utility Bills for Errors
Review your bill for accuracy – ghost phones, unused features, unexplained charges all add big dollars to cost
Look for ways to optimize plans with current providers to reduce unneeded minutes and data plans
Consider flat reimbursement plan for employees needing phones
Try to consolidate carriers to drive bigger discounts
Target Savings – 15% to 35%
Review Cellular Bills for Savings
Compare prices with several resources and look for companies that can sell everything at a good price
Be sure to include office product suppliers in review
Think twice before buying these items from general line wholesalers
Be sure to standardize selections among all store locations
Great supplier consolidation play!
Target Savings – 10%-15%
Review Janitorial Supplies and Paper Consumables
Free initial analysis of spending to determine potential savings areas
We cover 35 expenses categories and have solid experience in c-stores
Savings are negotiated and ready to implement within 8-10 weeks
Fees are based on 45/55 split of results – no savings, no expenses
All purchases are audited every two month to document results
Typical Savings -- $1,500 to $4,000 per location
Plan B: Outsource Cost Control to Alliance Cost Containment
50+ locations in Midwest Major areas of savings included:
◦ 11% savings on Snow Removal◦ 16% savings on Vehicle Maintenance◦ 15% savings on Office Supplies◦ 16% savings on Employee Background
Checks◦ 23% savings on Telecom & Internet◦ 13% savings on Uniform T-Shirts
Total Savings Found -- $126,000 per year
Convenience Store Case Study
Millions saved for c-stores, including:◦ Daily’s – Nashville, TN◦ Huck’s – Carmi, IL◦ Thornton’s – Louisville, KY◦ Super Quik – Ashland, KY◦ Great Stops – Durham, NC◦ Patriot Oil – Green Bay, WI◦ MaxFuel – Hopkinsville, KY◦ Cheer’s – Paducah, KY◦ Family Express – Valparaiso, IN◦ plus many more
We Understand Your Business
Please contact us for a free initial savings analysis to see what we can do for you
Rudy F. Moeller, Jr. Vice President, Client Services Alliance Cost Containment 502-805-1274 office 859-576-8387 cell [email protected]
For more information