Why same uniforms but different prices?

Why do prices vary for the same uniforms?

A $25 million manufacturer serving heavy industries has safety- critical garment requirements at six facilities in the Midwest, South and East Coast.

The company realized its costs for flame-retardant (FR) uniforms and shop supplies varied greatly from one site to another, even when a supplier served multiple sites.

Why the lack of consistent pricing? The firm asked Expense Reduction Analysts (ERA) to find the answer.

The answer is simple. So is ERA’s solution.

The answer: What the market will bear.

Based on industry expertise and proprietary benchmark pricing data, ERA Consultants know what like companies pay for the same goods and services.

ERA recommended consolidating service with a single supplier under much improved, re-negotiated terms. One of the incumbent vendors now services four of the client’s six sites. The remaining two sites will be added when their current contracts expire.

The benefits provided by the winning supplier include better pricing and important cost containment commitments.

For example, new locations can be added under the same cost structure. Conversely, if locations close, the contract can be terminated without penalties. Furthermore, prices remain fixed for three years.

Benefits of the new contract include better pricing and features for cost containment.

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