Why the same uniforms but different pricing?

ERA Consultants find the answer - and hidden profits of $16,000 a year

A $25 million company has six facilities in Michigan, Illinois, West Virginia and Pennsylvania that serve heavy industries with safety-critical garment requirements. The company found its costs for flame-retardant (FR) uniforms and shop supplies varied greatly from one site to another, sometimes even with the same supplier.

Why the lack of consistent pricing? The firm asked experts from Expense Reduction Analysts (ERA) to look into the matter for its 25 employees wearing these FR uniforms.

The answer: What the market will bear. ERA consultants, however, know what like companies pay for the same goods and services. Based on their industry expertise and proprietary benchmark pricing data, ERA Consultants conducted a competitive bidding process. The result is consolidation of service with a single supplier under much improved terms. One of the incumbent vendors now services four of the client's six sites. The remaining two sites will be added when their current contracts expire.

The benefits provided by the winning supplier include better pricing and important cost containment commitments. For example, new locations can be added under the same cost structure. Conversely, if locations close, the contract can be terminated without penalties. Furthermore, prices remain fixed for three years. Your success story is waiting to be written. Get started lowering costs for your company.

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