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.
Our
response:
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.
 |
How
long have they been in business? |
|
Can I
talk to recent references in my type of business? |
|
Can I
meet with references in my area? |
|
Do I
know these references or can I verify them? |
|
Make
sure they specialize in the field. Phones = phones not a shopping list |
|
Do
they have experts on staff with a track record of success. |
|
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:
 |
Cancellation options |
|
Cancellation fees |
|
Term
of the agreement |
|
Contingency fee structure |
|
Fee
payment schedule on audit collections |
|
Fee
payment schedule on future savings streams. |
|
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 does cost reduction work only on a for-fee
basis. Our results 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.
