How much revenue would you have to earn to add $72K to your bottom line?
$2.4 million.
at a 3% pre-tax profit
That’s right, to add $72,000 to your bottom line you would need to increase revenue by $2,400,000 if your pre-tax profit is 3%. This is our basic Expense Savings Formula.
Want to add $45K? $90K to your bottom line? At 3% pre-tax profit, you would need to earn $1.5 and $3 million, respectively. Use our Expense Savings Formula above to see your numbers, not just ours.
With just five meetings
we help you realize real savings.
NCRC Cost Reduction Process
As a turnkey service, we are mindful of your valuable time and keep your commitment manageable. Our proprietary Cost Reduction Process requires only five brief meetings with you. From there, we follow up with three audits throughout the agreement year. Each milestone reviews the completed objectives and outlines the next goals. That’s all you need to contribute: 5 meetings followed by 3 audits. We do the rest.
Expense Reduction Milestones
Meeting 1 – Introduction and Overview
45 minutes
National Cost Reduction Company presents a brief overview of cost management objectives and expense reduction initiatives. A signed Confidentiality Statement is presented, followed by a discussion of your cash flow challenges. A date is set to complete the Expense Worksheet.
Meeting 2 – Complete Expense Worksheet
30 minutes | Approximately one week after first meeting
NCRC at your discretion can work with your actual expenses to identify approximate annual spend by category and supplier. Sensitive supplier relationships and contractual agreements are noted. A date is set to present NCRC’s annual forecast of savings to you.
Meeting 3 – Present Forecast of Savings
45 minutes | Approximately one week after second meeting
NCRC presents a conservative forecast of annual expense savings. Four documents to implement cost reduction services are reviewed with you to be approved and signed. A date is set to implement the cost reduction management process.
Meeting 4 – Implement Cost Reduction Management Process
15 minutes with you | 60-90 minutes for NCRC to copy invoices
Approximately one week after third meeting
NCRC receives your two signed and two approved documents from Meeting 3. Paid invoices from previously identified suppliers are copied to establish costs to the item and/or stock keeping unit level. Original invoices remain in your paid accounts file. A date is set approximately 8 weeks after meeting 4 to present documented and approved savings, as well as NCRC cost reduction management recommendations.
Meeting 5 – Presentation of Documented and Approved Savings
60 minutes | Approximately 8 weeks after fourth meeting
After 8 weeks of communication and negotiation with current and alternative suppliers, NCRC presents the following:
- Cost Reduction Findings and Recommendation Report
- Excel spreadsheets confirming documentation of new lowered costs (both hard copy and on disc)
- NCRC’s first invoice as a percentage of the documented savings which is deducted off the last invoice.
Audit Meetings 1,2,3
45 minutes each | Typically 4, 8 and 12 months of agreement year
At each audit meeting NCRC identifies actual savings only from paid invoices in that 4-month period. NCRC presents the following:
- Cost Reduction Findings and Recommendation Report
- Excel spreadsheets (both hard copy and on disc)
- Following each audit, NCRC invoices 50% of the approved and documented savings
At the conclusion of the final audit, NCRC deducts full amount of the first invoice from the amount due.
National Cost Reduction Management Corporation is your Chicagoland specialist in cost reduction management strategies.
Request a free analysis today and let us show you how to control costs and reduce expenses to improve your bottom line. Our fees are contingency-based, so if we don’t save you money, we don’t get paid. That’s our no-risk guarantee to you. No cost. No obligation. Period.
