Taking Action eNewsletter

Grow Profits By Containing Costs

Issue Twenty-Six

I continue to be amazed at the amount of money that my clients are saving by critically reviewing their indirect spending. These cost containment projects are reducing indirect costs by an average of 15%, and that money is going straight to the bottom line!

By taking advantage of national contracts, resourcing to alternate vendors, or simply renegotiating prices with incumbent vendors, my clients are taking advantage of group buying power and our knowledge of how pricing is structured in specific expense categories. Some of the expense categories we can impact include, but are certainly not limited to the following:

Here are a few examples of real savings achieved for some of my clients, so far this year (percent savings are net of our fee):

• Office supplies cost reduction of 39%
• Coffee and water supplies cost reduction of 41%
• Document shredding cost reduction of 36%
• Advertising cost reduction of 24%
• Payroll processing cost reduction of 17%
• Fingerprinting services cost reduction of 30%

I have been saving the best part about these cost containment projects for last. All of our time and effort to analyze expense categories, source new vendors, move to national contract agreements, and/or negotiate with incumbent vendors costs nothing. These projects are funded using a gain-sharing model, so we are only compensated when savings are achieved for our client. It does not get any better than that.

If you have an interest in learning more about how a cost containment project can boost your profits, please contact me via my email: doug@thedougwilliamsgroup.com or call me at: 305-598-9880.