Single-minded mission helps save the cash
Sunday Business Post, 15 March 2009
Expense Reduction Ireland (ERI), established in 1996, offers a unique service to its extensive client base, by looking at all areas of expenditure for accompany, bar the payroll, with a single-minded mission to generate cost savings.
Its fee structure is particularly appealing in these recessionary times, according to managing director Seán Griffin.
‘Our fee is calculated as a percentage of the costs directly saved, as established and implemented by ERI. Traditionally, we charge 50 per cent of the costs saved in year one, thereafter the savings are enjoyed solely by the clients. However, given the current tough climate, with businesses and organisations desperate to save on costs, we have introduced a special offer whereby for every €10,000we save a client in a spend area, they will keep €6,600, with ERI paid the remaining €3,400.
ERI has a hugely impressive client list. ‘‘We have worked with public sector companies and government departments and also a huge array of private companies, from small to multinational businesses,’’ said Griffin.
Asked what areas of business they review, Griffin said: ‘‘we look at all expenditure areas, anything that’s a cost. We conduct cost health checks on more than 100 designated areas for our clients. These include stationery, energy, mobile and other telephony costs, and we examine the prices they are paying for the services and goods they are purchasing.
‘A certain rule of thumb should apply, according to Griffin – those with a large spend should be able to buy goods and service more cheaply than companies with a smaller spend, but because businesses work in isolation they are often not aware of the savings they are entitled to expect.
‘If a company has €100,000 to spend on a given area, they should achieve a better price than a company with €50,000 to spend in the same area, and ergo a company with a budget of €200,000 should get an even better price, ‘said Griffin.
‘The good news for ERI clients is that we are able to implement savings immediately. Because we have been in business for 13 years, we have built a very comprehensive database of costs, against which we can measure what clients pay for particular goods and services. This broad overview gives us a huge insight into what costs can be saved.
‘Because we also know from a separate database, updated daily, what the suppliers pay for the products in the first instance, we know what is a reasonable cost and we can also gauge what is a fair price for our clients.’
Summing up his company’s service, Griffin said: ‘ERI helps clients to plug profit leaks and improve their bottom line. We have successfully completed more than 1,000 projects across 87 expenditure categories resulting in an average of 20 per cent reduction in costs without any diminution in product or service quality.’