1. Case Study
Project Information
Expense:
Waste
Uniforms & Linens
Cleaning Services
Food Services
Chemicals & Fertilizers
Industry: Private Country Club
Hidden Savings: $160,000 over 3 years
Savings: 17%
ERA Cultivates Savings for Private Country Club
ERA consultants discover strategies to save the client 17.2 percent
in business expenses
Beacon Hill Country Club (BHCC) is a private, member-
owned club located in New Jersey. The organization wanted
a thorough review of expenses to see if there were
unrealized savings, but the key stakeholders were engaged
in other operational priorities and did not have the time and
resources to focus on this mission. As a result, the club’s
general manager selected Expense Reduction Analysts (ERA)
to assist by analyzing spend across five business categories.
Broad category knowledge with contract negotiation
skills enabled BHCC to realize an average 17.2 percent
reduction in expenses over a three-year period
($160,000 in savings).
ERA consultants began by analyzing the organization’s
spend for waste, uniforms and linens, cleaning services, food
services, and chemicals and fertilizers. Across four business
expense categories, ERA worked with the incumbent
suppliers to renegotiate terms, and three categories led to
significant savings: waste, 41.3 percent; uniforms and
linens, 23.4 percent; and food services, 16.5 percent. For
the chemicals and fertilizers category, Beacon Hill chose to
continue to use name brand products, but ERA did identify
ways to reduce expenditure by 4.3 percent.
For cleaning services, ERA recommended a new supplier with
terms more advantageous to the client, resulting in a
savings of 39.7 percent. Across all five categories, the client
realized a $160,000 savings in operational expenses over
three years. Throughout the entire process, ERA provided
continual communication with the client to ensure
transparency and long-term success.
Because ERA took the lead to analyze business
expenses and present solutions for savings, the BHCC
team was free to focus on operational priorities.
After identifying expense reduction strategies and
implementing the new contract terms and pricing, ERA will
continue to track BHCC’s savings over a two-year period to
ensure that the suppliers do not incrementally increase
prices. By reducing expenses by an average of 17.2 percent,
BHCC can use the funds to bolster its budget and facilitate
initiatives and upgrades to benefit members.
17%
"I have partnered up with a company
that has helped me to save over
$160,000 in operational expenses over
the next 3 years; 80% of the new
contracts are with existing suppliers. I
believe other clubs would be very
interested in how this was done.”
–Ian Church, general manager of BHCC, to
Gabe Aluisy, Founder of Private Club Radio