Many companies believe they cannot afford it!
The average cost management specialist charges £120 an hour while a basic review and report costs about £1,500, and you can pay much more for complex services. Cost management specialists offer a guarantee to give you one of the best return on investment models available anywhere.
So should you pay for a cost management specialist or can you save your pennies by going it alone?
The case for cost management advice
Many people use independent brokers who are paid supplier commissions and their clients are under the false impression that the advice is given free or are simply not aware of the huge fees these so-called independent brokers are earning.
The commission brokers earn from their so-called independent advice is simply added to the products and services they recommended. The money still comes directly from your pocket, deducted from your selling price, however it is less painful than paying a cost management specialist.
Commission should be banned in the same way as it has been for IFAs and their so-called independent financial advice. It gives unscrupulous brokers an incentive to recommend the products that pay them the highest commissions, rather than the right ones for the client.
Brokers should clearly set out their different supplier commission payments.
Cost management specialists are worth £120 an hour because they are well-trained professionals whose advice should more than pay for itself. Would you mind paying £20,000 or £30,000 in fees if I could you save you £100,000. Is £120 per hour too much to pay for this kind of return?
Many of today’s brokers are aggressive, commission-hungry salesman. Cost management is an ongoing process designed to manage cost through the effective monitoring and management of costs.
Going it alone
If you’ve got relatively small business overheads, cost management advice doesn’t pay. The cost of the cost management specialist will eat up too much of your savings.
Finding the right cost management specialist
Consider setting up free first meetings with several cost management specialists to see which one you like most. Make sure you pick a fully independent cost management specialist ready to negotiate the best possible outcome for your business including staying with your existing suppliers.
Why Auditel?
Auditel is the leading and largest strategic cost management consultancy in the UK & Ireland, and as a supplier working with any one of over 200 Auditel Affiliates (consultants) on behalf of their clients you can expect a professional and transparent experience.
This has evolved through a mix of best practice and common values developed over the last twenty years delivering our consultative services on behalf of thousands of clients and those in their supply chain, whether as incumbents or alternative suppliers.
Our internal systems and accumulated industry information offer a powerful resource to our clients in all areas of procurement and cost management.
Contact paul.foster@auditel.co.uk or call 07964 623920
