New England manufacturer prints extra profit of $26,000

Cost of leasing office equipment reduced 17%

A New England manufacturer with more than $200 million in annual sales and 2,000 employees worldwide asked Expense Reduction Analysts (ERA) to review its equipment leases to determine whether expenses could be reduced and efficiencies increased.

Since the manufacturer had added copiers and printers as they were needed, few leases expired at the same time. Analysts recognized this prevented the client from leasing a new fleet of equipment, which would mean better pricing due to volume purchases.

ERA also wanted to avoid "rolling" old leases into new leases. This arrangement is made often by new suppliers to lower expenses up front. However, it is not cost-effective for the client in the long-run.

After spending time analyzing more than a dozen complex leasing and servicing agreements and conducting a physical inventory, ERA prepared a Request for Proposal and solicited bids from the incumbent as well as from another equipment leasing company.

Although the new vendor's bid was lower, ERA was aware from meeting with key staff members that the incumbent's service was more important to the client than price.

Based on their industry knowledge and their homework, consultants crafted a "win/win" strategy that saved the client money in the short-term and will save even more money in the long-term -- all with the incumbent. Your success story is waiting to be written. Get started lowering costs for your company.

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