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Five Places to Find More Profits This Week

Five Places to Find More Profits This Week. A Practical Guide to Saving Money and Building the Bottom Line for Study Group Members . Facts of Life.

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Five Places to Find More Profits This Week

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  1. Five Places to Find More Profits This Week A Practical Guide to Saving Money and Building the Bottom Line for Study Group Members

  2. Facts of Life • 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

  3. Five Ways to Save Money Fast • 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!

  4. Review Waste Disposal Contracts • 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%

  5. Review Merchant Services 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%

  6. Review Utility Bills for Errors • 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%

  7. Review Cellular Bills for Savings • 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%

  8. Review Janitorial Supplies and Paper Consumables • 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%

  9. Plan B: Outsource Cost Control to Alliance Cost Containment • 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

  10. Convenience Store Case Study • 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

  11. We Understand Your Business • 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

  12. For more information • 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 Rmoeller@alliancecost.com

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