Cost Reduction Contingency

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Cost reduction and profit improvement for businesses

Cost Reduction - Contingency Fee Consultants

Selecting a contingency cost reduction consultant

Question: What should I know about cost reduction consulting specialists to choose the right one to try to reduce my fuel, telephone and services costs?  They want to audit my phone bills and audit my energy bills to find where I've been overcharged.  Is this a good deal?  Do you do this kind of cost reduction consulting.

Signed, Energy1.

Selecting a cost reduction consutlant:

Yes, this can be a good deal if you hire the right one.  You pay them no money up front.  They will earn their fee by taking a percentage share of any refund check.  They will also audit your current operations to find opportunities for savings.  They will earn a share of that future savings stream as well.

Telephone cost reduction specialists, in particular, have hired or been started by ex-phone company employees who really know the in's and out's of the regulations and billings.  They can really work wonders with a phone bill to find the opportunities.  The same can be said for other specialists as well (e.g. energy and shipping).  Specialist firms may be able to a much better job in that targeted area than a generalist benchmarking firm.

The good news is that this is "found money" for you.  And you have to do little work to earn it. 

How do I pick the right cost reduction consultant?

Here is the checklist of questions that I use when evaluating contingency cost reduction consultants of this type.

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How long have they been in business?

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Can I talk to recent references in my type of business?

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Can I meet with references in my area?

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Do I know these references or can I verify them?

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Make sure they specialize in the field. Phones = phones not a shopping list

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Do they have experts on staff with a track record of success.

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What is the exact language of the contract?  This is where your business financial, operating, and legal people must review the terms of the agreement with a fine tooth comb.  Key points to consider:
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Cancellation options

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Cancellation fees

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Term of the agreement

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Contingency fee structure

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Fee payment schedule on audit collections

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Fee payment schedule on future savings streams.

Cost Reduction Consultant Summary

Engaging the right specialist contingency cost reduction consultant can be a lucrative move.  When they audit your phone and fuel bills, the savings may be considered found money.  Your opportunity is to not only bank the savings but to reevaluate how you manage those services in the future.

Business Solutions - The Positive Way has results that are so significant that contingency fees would be disproportionate.  We guarantee our cost reduction and profit improvement consulting work will more than pay for itself.

 

Cost Reduction & Profit Improvement
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