Frequently Asked Questions
Who Are We?
We are an independently owned and operated franchise of Expense Reduction Coaching (ERC). We help companies reduce their expenses in an extensive list of categories using proprietary systems since 1993. ERC's franchisees consist of former purchasing, negotiating and marketing professionals from top corporations with diverse areas of expertise. While our clients might have direct contact with only one of our professionals, there could be a number of us working on your project.
What Do We Do?
We will save your company money by establishing lower prices for goods and services, in particular indirect costs, of the same or higher quality. As a matter of fact, 2 out of 3 times you will be able to keep your current vendor but paying less for the same good or service. We also make recommendations as to how to improve your procurement process.
How Do We Do It?
We use a 7 steps proprietary process and have developed extensive industry knowledge to maximize your savings. We can negotiate new or renegotiate current contracts based on your current and future volumes. We intensely research markets and take the time to determine the highest value provider available.
What Does it Cost?
Our service is truly risk free and self-funded. Our fees are completely "pay for performance" based and will accrue only when your company realizes actual and documented savings. In a typical engagement, the client will split any savings with ERC over a 24-month period. After that, the supplier contacts, price agreements and savings belong to the client.
How Do We Begin?
We briefly meet with you to determine your needs and parameters and to determine which expense categories might be beneficial to examine. Next, we gather purchasing information (usually a few recent invoices) from your company or from your current supplier. This information is used as the basis for benchmarking your costs, evaluating your requirements and developing an RFP. All quotations and negotiations are handled directly by ERC and do not require any of your resources or facilities.
What Do We Provide?
We provide a detailed written report containing our recommendations for saving money on the chosen Expense Category. The recommendations will include previous pricing from your current supplier, any renegotiated prices from this same supplier as well as equivalent third party quotations. The decision is yours to take whatever action you deem to be the best. ERC will also assist in implementing any recommendations.
What is Your Obligation?
None! If for any reason you do not like our recommendations, you are under no obligation to implement them. In this event, since our compensation is solely based on actual, documented cost savings, no fee is charged.
Why Does this Work?
The introduction of a third party into the purchasing process will cause suppliers to seriously reevaluate their position. Over 24 years we have developed the required industry knowledge on indirect expenses that most companies lack. In addition, being contingency rather than rate based, our fee structure motivates us to save you the maximum amount of money.
Most importantly, we do not represent any suppliers and are completely objective. We work exclusively for our clients. As purchasing professionals, we offer the experience, expertise and negotiating skills not readily available in many companies and we will devote all of our time and resources to obtaining the best possible value for your company.
Using ERC to analyze research and negotiate for you will allow you and your employees to focus on your core business tasks, yet maintain a firm handle on those controllable costs that can significantly effect your bottom line.
What our Clients are Saying
"ERC has proven to be very knowledgeable and aggressive in reducing costs."
Cruise Line saved $719,00 a year