Expense Reduction Support for BID Businesses

Cut costs not jobs to weather the storm

For many businesses, the default reaction when faced with the challenging economic outlook is to scrutinise headcount or instigate a sales drive, both of which can be costly.

However there is a third way.

HammersmithLondon BID has liaised with Expense Reduction Analysts, a leading cost and supply management consultancy, and investigated various opportunities to potentially minimize BID companies costs. BID businesses can participate in our pilot programme and make significant savings by proactively identifying ways to reduce their expenditure across a range of everyday back office expenses such as freight, insurance or bank charges, to name but a few. Expense Reduction Analysts consultant Andrew Lees said:

Interestingly, 58 per cent of respondents in our survey last year identified increasing sales as their priority for increasing profitability. However, the study highlights that there is also a major opportunity to review day-to-day business expenditure. In many cases, the true costs of running a business are hidden deep within the organisation and go unchecked for long periods of time.

However, the savings that can be generated go straight to the bottom line and, on a typical industry profit margin of around 8 per cent, a company would need to generate sales of a quarter of a million pounds to make the same bottom line impact as cost savings of just £20,000.

Expense Reduction Analysts manage £400m of client spend in the UK and advise many organisations on how to improve supplier value without any reduction in quality of product or service received.

If you are interested in participating in the BID pilot study please contact Grace Nelson, Marketing Executive at g.nelson@hammersmithlondon.co.uk or 0208 741 8157.