ThriveHive interviewed Bottom Line Concepts CEO, Josh Fox and the start of his business and how expense reduction analysis works.
John, you were right: this year alone, these guys saved us over $200,000. Wait ‘til Wayne and Pam see these figures.
Okay, let's see your budget report. Where did this money come from?
We started working with this group called Bottom Line Concepts a year ago, and they reduced our mailing equipment cost by 63%. We also saved an additional $70,000 in vendor fees, overcharges, and recovered postage.
Where did you get the money to hire consultants for this?
Bottom Line operates on a contingency-based model: they only get paid if they save us money. If they don't, the service is free.
Okay, I'm listening. Tell me more.
Bottom Line focuses on companies like ours that have multiple locations with mailing equipment. We did some checking, and they work with some of the largest entities in the US.
They did a very thorough, free, no obligation analysis for us in defining our savings opportunity. What surprised me was how little control we had over these expenses. For instance, we had sites spending drastically different rates for the same equipment, despite having a national contract with our vendor.
There were tens of thousands in fees that we had been oblivious of, and many sites were paying more for the equipment than the postage being used.
How did we reduce costs by 63%?
Bottom Line helped us negotiate better pricing from our vendor. But, what stood out was the way they worked with our field sites to define their needs and show options that suit their applications. In some cases, this includes getting rid of the equipment or switching to PC postage.
What delights me the most is that they managed our spend for us, including giving us a web-based dashboard that shows us all of our mailing expenses in one place. The reports we were getting from the vendors were spotty at best.
Bottom Line eliminated over $20,000 in vendor fees and secured another $10,000 in refunds for us from areas in which we had been overpaying.
I was amazed at how much lost postage they found. Three years ago, when we closed the Acme division, no one on our side went back to collect the postage that was sitting in those meters. Bottom Line identified these accounts and helped us get the money back.
To sum it up, there are three main benefits from our partnership with Bottom Line: (1) They bring us risk-free savings, (2) they manage the spend and make it easy, and (3) we have top experts in the industry at our disposal.
Great job on this one.
I like the numbers that I'm seeing. I look forward to showing them at my board meeting next week. Good call on picking Bottom Line as a strategic partner.
If you're seeking ways to save money, maximize revenue, and increase the profitability of your business, you're in luck. Next up, we welcome CEOs from two companies, both of which have a partnership that's built on the foundation of cutting costs and boosting the business efficiency of their clients. And there's a great chance they can help your business too. In a moment, we'll be speaking with Josh Fox, CEO of Bottom Line Concepts, a financial consulting firm.
Josh, Bottom Line Concepts is a performance-based financial consulting firm. What does that mean, and how does it help businesses save money?
We are hired by various types of organizations, ranging from for-profit companies to charities, and even a municipality. These entities engage us to hopefully perform in one of two ways for them: The first being that we can go back in time, say ten to fifteen years, to identify outstanding refund opportunities that they might be unaware of.
We identify those opportunities; we get back those dollars, and we share a portion of them with the organization that hired us. Alternatively, we can review the future expenses of an organization, and if we could help them reduce their cost and we both keep a percentage of the resulting savings — but our cut is only for the first two years.
And what categories do you often find savings in for your clients?
We currently offer services in about forty different categories. The nice thing about the model is that it's completely a la carte, hence the client corporation can choose the categories for which they'd like to hire us. While some companies start out with a few of them — test us out to make sure that they're content with the results, after which they’d rehire us for additional categories. Others are happy to move forward with all of the categories. They say if you were going to do this, we'd like to look for any refunds and savings opportunities as quickly as possible. So, it's very flexible.
One of the things that cause small businesses to fail within the first five years of operations is high
expenses. With high operational expenses and low income, small businesses run into losses which drain
the business and leads to failures.
In order to strategize and reduce operational costs of running your business, it is very important to
leverage the services of cost reduction consultants to help analyze your business and develop a strategic
plan to reduce expenses while increasing income to boost the cash flow of the business.
Before, bringing in a cost saving consultant to help you reduce your operational costs and streamline your
business cash flow, you can consider the following simple tips to implement right now to cut down your
expense and save your business.
1. Track Your Expenses
If you don’t keep track of your day to day business expenses, there is no way you can be able to stay
ahead in the game. Peter Drucker, the business management guru said, “If you can’t measure it, you can’t
manage it.” To manage your business expense, you must track it regularly.
You can take advantage of online bookkeeping and accounting tools to help you keep track for your
expenses. This will help you to evaluate, measure and monitor the expenses, incomes and cash flow
position of your business.
2. Leverage Technology
The beauty of technology is that it can help reduce some of your business expenses and make it efficient
to run your business. And the good news is that there are many digital tools out there on the internet with
lots of freemium options for your business to reduce your operational costs.
For example, you can take advantage of social media networks to promote your business and keep in
touch with your business as compared to spending more in traditional advertising. You can increase
communication using mobile messaging apps with your clients which simply cost you internet data.
3. Cancel Blood Draining Expenses
You cannot run a business without expenses. But your business cannot run with excessive and blood-
draining expenses. Your business also pays for the services of individuals, contractors and other
companies in order to serve customers.
But the bottomline is to ensure that all the expenses of your business are providing real-time value. If
your business is paying for services of contractors and service personnel which are not showing in the
bottomline, you can consider evaluation with your cost saving consultant and then canceling them off.
4. Outsource Key Practices
In order to stay on top in doing what your business can does best, it is very important to outsource key
operational activities which can best be done by subject matter experts. This will enable the team to focus
on what they can do best and excel.
Outsourcing will focus the company, manage time efficient and improve bottomline ROI once the best
outsourcing company has been chosen. Areas you can consider outsourcing are advertising, marketing,
accounting, taxation and payroll.
For more information please check us out at https://www.bottomlinesavings.com/
When companies are faced with problems needing immediate resolution, the choice of hiring a consultant may be the best option to choose considering the circumstances.
Businesses from time to time are faced with major problems or new projects which may leave the entire workforce grounded or in some cases, slow down its productivity, when such situation arises, making the move to hire a consultant can be the best way to achieve the needed resolution to move the company forward.
As a team leader, should your organization be faced with a problem too large and complex for your to solve, it may be in your best interest to opt for the choice of cost saving consultants to minimize the loss of the company as a result of the problem arising and needing the input of specialists.
Considering why hiring expense reduction services is best for your company? Below are some or the reasons why:
1. Specialized Expertise
The aim of businesses is to create a demand for goods and services while offering a matching quality to increase profit margin. However, most businesses are failing to break through their revenue gap and increase their bottom line due to the lack of expertise of its staff and as such need the service of expense reduction consulting specialists who are specialized in the area to get their bottom line to its target. Most businesses have come to understand that there are several smart people who understand the specifics of business better than their staff and as such creates the need to hire professionals who have more in-depth knowledge about a particular area where the company needs help. Hiring a specialized consultant affords you the opportunity to pay less compared to the gains of the expertise offered.
2. Real-World Experience
More often than not, consultants are at the peak of their careers because of the experience they have gained on the field which has helped them further polish their knowledge and expertise in their specialized area. Consultants offer companies a level of expertise which is unmatched by most staff in the workforce who have barely handled clients or reeled in the big sharks. In addition to the experience and unmatched expertise, consultants, along with real world knowledge additionally boast of a high level of confidence and credibility thus helping the company better establish trust at the onset of the relationship.
3. Dedicated Focus
Consultants from outside an immediate organization also helps to ensure the highest level of dedication and focus needed. Most often than not, hiring a qualified consultant from outside the company is a great way to boost the morale and groom in-house talents who have shown commitment and promising signs to break new boundaries. In addition to this, hiring a consultant allows your company to benefit from an unwavering focus and dedication to the task at hand as an in-house employee who can also handle the same task may be burdened by the load of multi-tasking.
4. Timely Attention
One of the overall benefits of hiring cost reduction consultants is that their dedication is made known in the short term results which are obtained as against setting an in-house employee who is burdened by other tasks to the project. In addition to this, cost reduction consulting firms free up the internal resources of the company thus allowing more work to be done in the time frame.
5. Contractual Guarantees
Consulting firms and consultants guarantee their expertise and result in contractual agreements thus giving your company a measure of confidence in the results expected.
For more information on how we can help you, feel free to check us out at https://www.bottomlinesavings.com/