Decrease Operating Expenses, Increase Profits

The focus for every for-profit company is cost control and profit. Every CFO reviews their expense reports obsessively trying to find one service or product where they can reduce some operating expense. The answer doesn’t have to be difficult, if you ask the right person. That’s what the team at Expense Reduction Analysts (ERA) specializes in – helping you reduce business expenses while while still ensuring your business receives the best services available.

For example, our team recently helped a liquor store chain in the Midwest save 14% in credit card payment processing.

The franchise chains of a liquor store in a Midwest metropolitan area accept credit card payments totaling over $13 million dollars every year. Costs for processing these purchases were slowly rising, but the liquor store leadership did not understand why. Management asked the ERA industry experts to find answers and suggest solutions.

An analysis of the client’s statements showed the processor used a bundled rate fee structure and charged point-of-sale processing fees for each gift card, as well as monthly fees per location.

Finding a low cost credit card processing solution

Consultants from ERA used a request for proposal (RFP) to obtain a more suitable fee structure and appropriate pricing. Based on a combination of competitive pricing, customer service and pricing of loyalty card products, ERA industry experts recommended the client use a new provider.

Our team assisted with implementation, verifying that the new provider was processing debit and credit cards at the correct rates for all of the chain’s 24 liquor store locations.

Increase profit by decreasing operating expenses

Steve Odland, a contributor on Forbes.com, also suggests five different ways to ensure efficient cost control. Odland suggests:

1.    Renegotiate all contracts annually.

2.    Ask your customers about their needs and services.

3.    Match terms with turns.

4.    Ask vendors to own “their” inventory.

5.    Hold headcount constant.

For any questions about operations costs, asset management, or any other pressing issues in your business, contact one of our team members today. We’ll help you make sense of your business expenses and make sure your profits continue to increase.

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