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Working together to find
extra profit




Humberto Dominguez
Director – Client Services
hdominguez@expensereduction.com
860-469-2245
How can you…

        …find extra profit…


        …with no loss in quality…


        …with minimal impact on staff…


        … at no additional cost to you…


        …on a sustainable basis
About Expense Reduction Analysts

• Global consultancy firm focused on helping
  clients increase their profits by reducing
  G&A/non-core operating expenses.


• Network of more than 700 consultants
  worldwide, with 250+ in the United States.


• Proprietary tools and benchmark data from
  more than 14,000 cost-reduction projects.


• Find average savings of 20% in multiple G&A
  expense categories, in 90% of the companies.
Lowering Non-core Costs can have a faster
and more direct impact in your bottom line
                                              40% Sales    20% Cost
                                   Today
                                               Increase    Reduction
Column1
Revenue                             $ 1,000      $ 1,400      $ 1,000
 Direct operating costs             $ 350        $ 490        $ 350
 Labor costs                        $ 350        $ 490        $ 350
 Non-core (indirect) costs          $ 200        $ 280        $ 160
Net profit                          $ 100        $ 140        $ 140




 A 20% cost reduction or a 40% sales increase would have a
 similar effect in the profits line. Which one is more feasible?
Expense Categories we review
Logistics                  Supplies
• Small Package Freight    • Chemical
• Domestic Freight         • Cleaning
• International Freight    • Food Services
Insurance                  • Lab and Medical
• General/Worker’s Comp    • MRO/Factory Consumables
• Health                   • Packaging and Shipping
                           • Printing
Services
                           • Stationery and Office
• Equipment Maintenance
• Janitorial Services      Telecommunications
• Payroll Processing       • Data
• Printing                 • Mobile
• Records Management       • Voice
• Temporary Labor          Merchant Card Fees
• Information Technology   Information Technology
• Uniforms
• Waste Management         Leasing
Bottom line: Why engage ERA?
 Results                                          The best tools
  We find and realize savings in 90% of          • A systematic and proven process.
   the companies that hire our services.          • Cutting-edge proprietary analysis and
  Average savings generated: 19.7%                 bidding tools.
 No Financial Risk
 • We operate on a contingency-fee model.         Objectivity

 Experience                                      • Unbiased third party with no preferred
                                                   vendors.
 •   In business since 1992.                     • 100% of our revenues come from our share
 •   Operating in 30 countries.                    of savings generated for our clients.
 •   700+ expense reduction consultants.
 •   More than 14,000 expense reduction
     projects completed.                          Implementation
 Expertise                                        • We implement the authorized
 • Reducing overhead expenses is all we do.         recommendations, and audit and monitor
 • Specialists on 30+ expense                       their results.
   categories, with an insider’s understanding
   of multiple industries.
Some of our clients
Examples of savings

         Distributor saved 13% on $315,000
          courier expenses
         Hidden savings of $40,000
         $4,000 for every hour client invested

 13%
13%
          in project




         Restaurants saved 17.8% on
          $151,000 merchant card fees
         Hidden savings of $27,000

17.8%
 34%
         $13,500 for every hour client invested
          in project
Examples of savings

        Distributor saved 35% on $100,000
         telecommunications
        Hidden savings of $35,000
        $8,750 saved for every hour client

35%      invested in project




        Manufacturer saved 23% on $80,000
         office products
        Hidden savings of $18,400

        $2,625 saved for every hour client
23%      invested in project
When you combine industry expertise and
 knowledge with best practices, you can
 achieve sustainable cost reduction and

         Find The Hidden Profits.



             Humberto Dominguez
                860-469-2245
       hdominguez@expensereduction.com

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Expense Reduction Analysts - Services and Benefits3.31.10

  • 1. Working together to find extra profit Humberto Dominguez Director – Client Services hdominguez@expensereduction.com 860-469-2245
  • 2. How can you… …find extra profit… …with no loss in quality… …with minimal impact on staff… … at no additional cost to you… …on a sustainable basis
  • 3. About Expense Reduction Analysts • Global consultancy firm focused on helping clients increase their profits by reducing G&A/non-core operating expenses. • Network of more than 700 consultants worldwide, with 250+ in the United States. • Proprietary tools and benchmark data from more than 14,000 cost-reduction projects. • Find average savings of 20% in multiple G&A expense categories, in 90% of the companies.
  • 4. Lowering Non-core Costs can have a faster and more direct impact in your bottom line 40% Sales 20% Cost Today Increase Reduction Column1 Revenue $ 1,000 $ 1,400 $ 1,000 Direct operating costs $ 350 $ 490 $ 350 Labor costs $ 350 $ 490 $ 350 Non-core (indirect) costs $ 200 $ 280 $ 160 Net profit $ 100 $ 140 $ 140 A 20% cost reduction or a 40% sales increase would have a similar effect in the profits line. Which one is more feasible?
  • 5. Expense Categories we review Logistics Supplies • Small Package Freight • Chemical • Domestic Freight • Cleaning • International Freight • Food Services Insurance • Lab and Medical • General/Worker’s Comp • MRO/Factory Consumables • Health • Packaging and Shipping • Printing Services • Stationery and Office • Equipment Maintenance • Janitorial Services Telecommunications • Payroll Processing • Data • Printing • Mobile • Records Management • Voice • Temporary Labor Merchant Card Fees • Information Technology Information Technology • Uniforms • Waste Management Leasing
  • 6. Bottom line: Why engage ERA? Results The best tools  We find and realize savings in 90% of • A systematic and proven process. the companies that hire our services. • Cutting-edge proprietary analysis and  Average savings generated: 19.7% bidding tools. No Financial Risk • We operate on a contingency-fee model. Objectivity Experience • Unbiased third party with no preferred vendors. • In business since 1992. • 100% of our revenues come from our share • Operating in 30 countries. of savings generated for our clients. • 700+ expense reduction consultants. • More than 14,000 expense reduction projects completed. Implementation Expertise • We implement the authorized • Reducing overhead expenses is all we do. recommendations, and audit and monitor • Specialists on 30+ expense their results. categories, with an insider’s understanding of multiple industries.
  • 7. Some of our clients
  • 8. Examples of savings  Distributor saved 13% on $315,000 courier expenses  Hidden savings of $40,000  $4,000 for every hour client invested 13% 13% in project  Restaurants saved 17.8% on $151,000 merchant card fees  Hidden savings of $27,000 17.8% 34%  $13,500 for every hour client invested in project
  • 9. Examples of savings  Distributor saved 35% on $100,000 telecommunications  Hidden savings of $35,000  $8,750 saved for every hour client 35% invested in project  Manufacturer saved 23% on $80,000 office products  Hidden savings of $18,400  $2,625 saved for every hour client 23% invested in project
  • 10. When you combine industry expertise and knowledge with best practices, you can achieve sustainable cost reduction and Find The Hidden Profits. Humberto Dominguez 860-469-2245 hdominguez@expensereduction.com

Editor's Notes

  1. This table highlights the profit-making possibilities of reducing your non-core indirect cost by 20%. While every dollar saved is equivalent to a new dollar of profit, additional dollars of income are not. Applicable expenses must be deducted from the sales dollar to determine the remaining profit.To have the same effect on your firm’s business value, you would have to increase your sales by 40%The January 19, 2009 issue of fortune Magazine has an article entitled “How to Manage Your Business in a Recession” which sites McKinsey Research saying that they have found that in a typical S&P 1500 company, a price cut of 5% would have to generate increased sales volume of 19% in order to pay for itself – and that almost never happens.