Our comprehensive Expense Mitigation services cover pretty much EVERY type of operating expense that a business might incur on a “recurring-basis” (either weekly, monthly, quarterly, semi-annually or annually), in every department across the entire organization, excluding employee salaries; governmental taxes, license, permit fees; donations; employee reimbursements; or any type of one-time or capital expenditures. See our Services page.
The client must furnish all Operating Services documentation (invoices, service agreements company directory and location listing, diagrams and any other applicable application and service information), necessary for Pearl Logic to gain a comprehensive understanding of the client’s Operating Services environment. The client must also communicate to all of the necessary staff and other parties of our project and grant access to all operating services locations for auditing, as applicable. Additionally, the client’s staff may be asked for clarification when certain service information is not available via provided documentation. Pearl Logic’s objective is to be as minimally intrusive as possible throughout the entire process.
This greatly depends on the size, complexity and total number of operating expenses under review as part of our comprehensive Expense Mitigation project, as well as the total number of documents (invoices, service agreements, purchasing reports, etc.), to be reviewed; plus the cumulative number of locations and vendors. As such a fully comprehensive Expense Mitigation project, could take anywhere from 8 weeks to 12+ months.
In exchange for our services, we split the savings 75% / 25% with the Client for 36 months, where the Client retains 75% of any cost reduction benefits through our findings. (Example: if Pearl Logic helps our Client reduce operating expenses by say $100,000 per month, Pearl Logic would invoice $25,000 per month for 36 months; which also translates into the Client experiencing $75,000 per month of new operating capital over that same 36 month billing cycle; and $100,000 per month of new operating capital in month 37 and beyond). In essence, our fee comes from the Vendor’s pocket; since our processes typically recover that generous gratuity unknowingly being donated by our Clients every time they pay a Vendor Invoice. Over that 36 month period, we will monitor those expenses areas that we audited, to ensure that “price creep” doesn’t work its way back into your Vendor Invoices.
If we’re unable to secure any refunds or deliver any reduction in operating expenses, we do not charge a single penny, which has NEVER happened. We have NEVER “not been able to find a way to improve operating capital for our Clients”. We do not actually start invoicing for our services until AFTER the Client actually “feels” the results of our efforts, so the Client ROI is better than immediate. Additionally, long after any Pearl Logic billing cycle has ended, the Client is able to continue to capitalize upon our efforts for years and years and years, since the total increased amount of year-over-year operating capital “gain” can be significant.
Pearl Logic consultants will augment our Client’s staff, so no additional headcount is required. We typically function as a temporary department (as somewhat of an extension of the Finance Department, reporting to the CFO, with the Corporate Controller as our assigned project / team liaison), and most certainly as part of the same team as any other Department within our Client’s organization. The Client’s staff may be asked to provide clarification in areas, and grant access to operating expense locations and operating expense information for inventory purposes, as well as to periodically reviewing project reports and status with consultant.
Recommendations have included the areas in virtually every expense category where businesses incur a “recurring” operating expense (either weekly, monthly, quarterly, semi-annually or annually), in pretty much every department across the entire organization, consisting of renegotiations with incumbent vendors; identifying alternate products, services, vendors and solutions; to consolidation efforts to reduce expenses administration costs.
Here are just a few examples of how Pearl Logic has reduced the operating costs for some of our Clients. A 34% reduction for a travel and vacation services company in Florida; 23% reduction for a credit and collections firm in New Jersey; 15% reduction for a hosted network solutions application vendor in Oregon; 24% reduction for a healthcare industry firm in Michigan; 16% reduction for a large Credit Union in Wisconsin; 24% reduction for a Civil Engineering company in Florida; 12% reduction for a Manufacturing Association in Washington, DC; 48% reduction for a Large Catholic Diocese in the Florida; 13% reduction for a large Fire and Security company in Indiana; 28% reduction for a Warehouse firm in the Florida; 11% reduction for a chain of Convenient Store / Service Stations Ohio; 16% reduction for a large Correctional facility in California; 32% reduction for a Community Health Center in central Florida.
As part of our comprehensive Expense Mitigation services, implementation of the recommendations falls upon the Pearl Logic consultants to manage, with the assistance of the Client’s staff, as necessary (which we always attempt to keep to a minimum). We will oversee the chosen vendor’s staff in implementing any approved recommendations to derive the expected cost savings and performance improvement results