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Find Money Right In Your Own Business - For No Cost!
By: Jim Frey

What if I told you that there was a company - or many of them - that can help you find cash within your company? Sounds fishy at first, right? What if I told you that you don't pay unless they find this money?

There are many reputable companies that come into your business, with your permission, and research your financials and they can provide an average of 15-20% of your spending BACK INTO YOUR POCKET. Let's say you're spending $1 million on materials, services, cost of goods sold, or all of the above. Typically they can get you $150,000-$200,000.

It is a comprehensive and cooperative effort between the company and its client to review procurement practices and identify and implement cost savings program. Traditional areas for review include indirect expenditures, such as bearings, safety supplies and cylinder gases, to direct expenditures, such as steel and raw materials, to service and maintenance contracts, such as food service and Waste Removal. Project length is typically 4-6 months and concentrates on "non-labor" savings. Fees can be based on a percentage of actual savings realized.

Within 8-10 weeks of "kick-off", the company will review with you an "Action Plan" which identifies specific savings opportunities. Each opportunity will be accompanied by a specific data sheet, which serves as the support documentation for each recommendation.

After review, the client determines which savings programs to implement. The company then takes the necessary steps to ensure the programs are implemented correctly. The process continues until all opportunities are uncovered, presented, and implemented to the satisfaction of the client.

Program Benefits include:

Expense Reductions

This is the name of the game! Almost any industry or business can save money including steel mills, industrial retailers, schools, hospitals and nursing homes to provide average savings of 10%-15%. Aggregate client savings has been as high as 39%, and individual programs have yielded savings approaching 70%.

Proven Methodology

This type of expense and purchase analysis program has been around since the mid 80's to assist small and mid size organizations identify and implement non-labor cost reduction programs.

Self-Funding Program

These types of firms can help business and they get paid only if they help you. They employ a "Contingency Based Fee Model." If you don't save money, they don't get paid.

Guaranteed Payback

These types of firms don't deal in cost avoidance or soft dollar savings. In keeping with the self-funding principles, you, the client, are guaranteed a "hard-dollar" payback.

Supplier Consolidation

Too many suppliers on your vendor list? Supplier consolidation is a natural and targeted benefit of the program.

Objectivity of Review

These firms help you by being a neutral third party service provider dedicated to meeting their clients' corporate objective of reducing costs. They have no "sacred suppliers". Furthermore, all fees are generated via hard-dollar savings realized by you the client. No fees are collected from the supplier community.

Full Accountability and Audit Provisions

As part of the Purchasing Analysis these firms provide you a comprehensive "back-end" audit feature that ensures vendor compliance with implemented programs, identifies "Maverick Buys" and lost savings, and provides full accountability for "billable" savings.

Market Knowledge

A lot of clients buy the same or similar products. Consequently, these firms are able to benchmark costs based on volume, geographic location and service level. This translates into lower prices and total cost for you the client.

Negotiating Power - VOLUME

These firms do not buy any goods or services for the clients, but they do utilize the benefits of VOLUME. Whereas you may buy $20,000 of a given commodity per year, they may have negotiated a total of $1,000,000 for the same commodity. This comes from the aggregate spend of all of their clients for whom they have negotiated contracts for the same commodity. This translates into a better buying opportunity for clients while maintaining their individual identity.

Do they substitute a cheaper, inferior product or service to save the money? Absolutely not! They always search out the EXACT ITEM and SPECIFICATION as what you're already using.

Article Source: http://www.host4gain.com/articles

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Jim is a former VP of a bank & now a commercial loan broker, speaker, author. Jim enjoys helping entrepreneurs find ways to finance projects. Get his free ebook at www.doughforthedream.com, read free info at doughforthedreamblog.com or listen to audio www.doughforthedream.podomatic.com

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