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GLOBAL Commercial Solutions Contract Renegotiation Overview.

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Presentation on theme: "GLOBAL Commercial Solutions Contract Renegotiation Overview."— Presentation transcript:

1 GLOBAL Commercial Solutions Contract Renegotiation Overview

2 Contract Renegotiation How Does It Work? What’s Your Benefit? What Is It?

3 Contract negotiation is a cost containment solution utilized to reduce an organizations monthly operating costs. Upon review of your current vendor list we will create a strategy to renegotiate your existing contracts to save you money. These infrastructure costs make up a huge share of your company's annual budget and can significantly reduce profits if not properly managed. Contract Renegotiation Is: What is Contract Renegotiation?

4 GLOBAL Fact: Several Fortune 500 companies have turned to qualified advisory services to help reduce their infrastructure costs and increase profitability.

5 Contract Renegotiation is an in-depth analysis of your companies fixed cost to identify cost savings by renegotiating existing contracts. The primary goal is to save your business 18 – 20% off of your annual budget We contact all your vendors and let them know the company is now shopping there services, and we’d like to get a revised bid from them. Contract Renegotiation Defined:

6 What Exactly Do We Do? We will analyze areas where our client partners are not comfortable that their current contract is not providing the best value for their dollar. If savings can be found through the current supplier, (or with a new supplier), we will give you specific recommendations for saving money - without sacrificing quality or service. We may negotiate with our client's current suppliers, or we may recommend new vendors. The final decision always belongs to our client partners. We offer extensive knowledge of the marketplace and the ability to recommend the most advantageous suppliers and services for our clients.

7 What We Avoid! We do not pretend to be experts in your industry. Nor do we evaluate employees, staffing levels or efficiency of our client's personnel. All of our negotiations with suppliers and recommendations are held strictly confidential. We do not finger-point, and if there are areas the client does not wish to address, for any reason, we will respect their wishes. We will not suggest they cut salaries or staff. To the contrary, we are careful to encourage employees to be more cost- conscious, without being perceived as a threat to them. WE DO SELL PRODUCTS OR SERVICES. WE ACCEPT NO COMPENSATION OR REMUNERATION FROM ANY SUPPLIERS, AT ANYTIME.

8 The GLOBAL Process Collect and review the specific details of each contract Discuss the target objective for each contract negotiation with our client partner. Research comparative market data from various competitors against the existing contract. Cross reference precise service and quality standards. Identify competitive offerings with same or greater product/ service at a reduced cost. Document real time data and pricing metrics. Contact your vendor and encourage them to beat our new, lower offer. The Net Result is a significant savings for the same or greater product/ service and a reduced annual operating budget.

9 Expense Reduction Flow Chart Your Company Collect & Review Discuss Complete Project & Reduce Annual Expense Budget Present Proposal Worksheet Proposal Research Worksheet NegotiateDocumentIdentify

10 Budget Management Complacency – Most companies simply increase there annual operating budget 3% a year to cover increases in services. This is a common mistake, by renegotiating there contracts, this figure can be decreased. Stability – Because companies never stabilize their ever increasing over head cost, most never achieve their Bugdet projections. Growth - 10% annual growth is what most companies strive for. However, all good budget managers know that is achieved not only through an increase in revenue, but in properly policing expenses as well. Companies typically use prior year cost to project future year budgets, why this is a problem:

11 Typically, companies are spending 20% more than they should on fixed infrastructure cost! Costs such as office leases, energy contracts and telecom expenses are areas that can be significantly impacted by our expense reduction services. Even when a vendor provides a sole source service, we find that we are successful in negotiation a new lower cost.

12 Types of Contracts We Negotiate: Office Leases Warehouse Leases Auto Leases Copier Leases Computer Leases Energy Contracts Telecom Contracts Internet Service Contracts Office Supply Contracts Auto Loans Auto Maintenance Agreements Auto Insurance Health Care Insurance Policies Labor Union Agreements Stage Equipment Coffee Machine Contracts Water Delivery Contracts Quick Tip: Submit a contract worksheet for a Free analysis of how we can benefit your company!

13 1. We do not brow beat vendors and suppliers to improve upon pricing. Our existing long-term vendor relationships are constantly growing in the marketplace. 2, Confidentiality is very important to us. Our client's data is confidential, as well as our suppliers prices and bid information. Our agreement with Suppliers (if selected to work with our client) is that they will not make contact unless we provide the introduction. This way we can ensure there is the professional courtesy and respect for all parties involved. We Treat Vendor Partners Fairly Service Highlights

14 Unlike consultants who charge a set fee we operate with a minimal deposit or even on a contingency basis, with no up front fee. In those few instances where worthwhile savings are not found - you pay nothing and receive the satisfaction of confirming your operations are running efficiently. Once our fees are paid, 100% of the savings belong to you. Service Highlights Minimal Out of Pocket Expense

15  Due to our extensive industry relationships and keen understanding of market pricing, we can often complete a project in less than six weeks from start to finish. Imagine how much money your company will save thereafter.  In some instances vendors are even willing to extend services at no cost for a period to retain you business, thus increasing your profits and return on investment even more. Service Highlights Immediate Impact to Bottom Line

16  Our comprehensive process allows t the ability to quickly identify areas of savings with in you r budget with just a few documents submitted for review.  Internal staff will be minimally involved on the front end of our process simply to ensure we clearly understand their needs and objectives. We usually complete most projects with very little subsequent interaction from our client partners. Service Highlights Minimal Client Involvement

17 Contact Us Today for your Free Cost-Benefit Analysis! Why provide your vendors with cash flow you can use to: Accelerate Debt Retirement Expand Your Existing Business Reinvest in Other Profitable Opportunities What would you do with an additional 20% savings?


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