Cost Saving Opportunities for Automotive Dealerships

Cost Saving Opportunities for Automotive Dealerships

Uncategorized / December 2, 2020

Cost saving opportunities for automotive dealerships require the right research and expertise to implement initiatives effectively. When P3 Cost Analysts engaged with a regional automotive dealership, their leadership was looking for unique ways to reduce expenses.  As a result, our team went to work auditing their telecom, waste, and utility expenses. To address the cost reduction plans this company wanted to initiate, we used our expense reduction services and implemented our strategies for this regional automotive dealership. 

 

Here is how we accomplished their objectives and how we might be able to help your company with our cost savings initiatives:

 

The Challenge We Faced Head-On

After visiting this regional automotive dealership, they recognized they did not have the time and needed help verifying expenses, generating refunds, and reducing overcharges. The client was focused on improving cash flow and reinvesting any potential savings into their daily operations. Keeping that in mind, our team gathered past bills and expense documentation to uncover overcharges that they weren’t aware of. 

 

The P3 Cost Analysts Approach

At P3 Cost Analysts, we know the only way to find cost saving opportunities is by carefully analyzing vendor contracts, invoices, and related tariffs and fees. Our approach is always aligned with the company’s goals and is unique to every situation. We provide a risk-free audit of their expenses by an expert and experienced team of auditing professionals.  Even though there are situations where we aren’t able to find savings in every area, in this case, we did manage to find ample savings for the automotive dealership in their utility, waste, and telecom bills. 

 

The P3 Cost Analysts team found a hidden error on their telecom invoices. The client was overpaying their telecommunication invoices by $300 per month. When our auditing team confronted the telecom company, they offered our client a three-month credit, but we didn’t settle for credits. After months of behind the scenes work with the vendor, we discovered that the overcharges went back over seven years. Ultimately,  we were able to secure a refund for our client, totaling to $25,000.

 

What P3 Cost Analysts Accomplished

When we work with a client, our job doesn’t stop when we’ve reduced expenditures in categories the client requested. Over the last seven years, we’ve worked closely with this regional automotive dealership to find additional savings in several different categories. From telecom to waste and utility to recycling, our team has generated over $200,000 in savings for this client. This also includes over $30,000 in cash refunds due to billing errors in utility and telecom billing. 

 

Cost Saving Opportunities for Automotive Dealerships

Our approach for this regional automotive dealership was accomplished through numerous tactics initiated by our decades of experience in finding savings in telecom, utility, and waste management for companies. 

 

So How Does a P3 Audit Work?

Our team will obtain client invoices for each location and a letter of authorization. Once we’ve received the invoices, this is an example of how we would help a company find cost saving opportunities:

 

  • We review invoices and contracts and check for things such as errors, accuracy, overcharges, and contract compliance.
  • We conduct a market analysis using our proprietary national database of vendor benchmarks to look for other options, best in class pricing, and review of regulatory requirements and compliance.
  • Our initial analysis will take up to 4-6 weeks.
  • After reviewing our client’s documents and completing our analysis, we’ll provide our client with our recommendations for approval.
  • Once our recommendations are approved, we’ll implement these changes over the next 4 weeks. 
  • We only share in the savings after the savings begin to hit our client’s bottom line.
  • After our recommendations are completed, we continue to monitor bills and invoices monthly for contract compliance and errors and overcharges, to ensure that savings remain in place.

 

At P3 Cost analyst, we work to uncover cost saving ideas for any company. If you’re looking to find savings in your utility, telecom, waste, merchant processing, or property tax bills, contact our team today. We also audit managed print, uniform and linen, and property tax expenses for the companies and organizations we work with.  Give us a call at 877-843-7579 today to learn more about what our expert auditors and consultants can do for you.

Photo Sourced from Getty Images: #1156321607

Facebook
Twitter
YouTube
LinkedIn