It’s true that not every company deals in freight, takes credit cards or has real estate investments that add to their costs. But there are areas that any company with an office and employees would be well served to audit for cost reduction. Here are five examples of hidden savings found in many companies:
1. Health Insurance
Do you know how much commission is hidden inside your prescription drug plan or your health insurance? There are opportunities for brokers to double dip and triple dip without the client ever knowing. Most companies would be surprised to hear that rather than premiums going up, they can actually go down without changing the quality of plans or physicians. Savings can be dramatic – as much as 30% for many companies! From trusts and VEBAs, to fully subsidized wellness plans, level funding, reference-based pricing and consumer directed health plans, there are many opportunities for savings that your commission-based healthcare broker may not be telling you!
2. 401K Benefits
One source of excessive broker commissions and charges is the 401k plan. If you haven’t included your company’s 401K program in an overall cost audit, you can serve your people and fulfill your role as a plan fiduciary by having your plan reviewed by any expert that is not commissioned broker.
3. Payroll Taxes
How can a company save on payroll taxes? As a straightforward calculation it would seem payroll taxes like income taxes are just one of the expenses that are untouchable. But there is a strategy that can bring $1,000/ee/yr back to the bottom line and enhance employee benefits at the same time!
4. Utility Rates
In the dark about how to save on utilities? Whether you have one or multiple locations, no company should be charged more than another given the same basic energy use, and yet they are. The issue is that without the knowledge of unpublished discounts, businesses lack the information to help them at the negotiating table.
5. Bank Fees
When was your bank analysis statement last audited? Is your bank offering you the same earnings credit to you that they are to your peers and competitors?
So why aren’t companies already finding these additional savings?
Every organization negotiates with the intent of getting the best rates for products and services. The issue is that while your company, like most, has capable executives, you only have limited time and energy to research best-in-class pricing and develop a team of cost auditors that understand the intrinsic drivers inside each cost. World class cost auditors have extensive databases of best-in-class pricing, tariff analysis skils, audit software, knowledge of unpublished discounts, and deep knowledge of all the nuances and negotiating protocols necessary to obtain best pricing from the vendor’s “special pricing” department.
DCI’s team of experts specialize in getting the greatest savings for their clients across fifteen cost centers. For a no-cost assessment to see where you could be saving more, contact us at (888) 395-0809 or firstname.lastname@example.org.