by David Chapman
Staff Writer
The devil can be in the details when it comes to businesses analyzing their finances.
For Debbie Michala, that attention to detail and the resulting savings in a struggling economy make her role all the more important to business owners, she believes.
A 25-year veteran in human resources in corporate America, she took on a new role as an Expense Reduction Analysts franchise owner in 2007. The national company was founded in 1992 and performs cost reduction projects for businesses large and small, including both for-profit and nonprofit organizations.
With 40 different services available, ranging from office products analysis and fleet management to printing and a company’s overnight delivery, Michala examines the various overhead costs associated with a business and tries to find savings.
“Generally, we do (find savings),” she said. “I’d say around 80 percent of the time we do.”
It could start with reviewing contracts with a business’ current vendors to factoring in penalties for early termination to reviewing costs and comparing it to competitors. If she believes she can get a better deal elsewhere, then Michala will issue a request for proposals and compare the prices, then make suggestions to company leaders based on the research. It’s always the owner’s decision to make, she said, but more often than not there is a recurring theme for the proposals.
“Sixty-five percent of the time, the current vendor is successful in acquiring the services,” she said.
She attributes that success rate to vendors realizing the economic strains and not wanting to lose clients themselves, she said, but also because of the present familiarity of a vendor-client relationship. Often, it’s not the service that’s in question — just the price.
She’s unbiased in her suggestions as she’s unaffiliated with any other company, which makes her suggestions in the best interest of both her client and potential suitors for a proposed service.
In the event she isn’t able to find any savings for the client, there is no charge. Michala’s fees are based on the amount of savings she’s able to pinpoint.
While businesses across Northeast Florida might be struggling, Michala’s is doing well, she said, as a down economy often sends business owners looking for ways to save.
There are hurdles, though.
Even with confidentiality agreements, some company officials aren’t as trusting with their books to an outside source. In addition, she often is told that the company does such analyst procedures internally, though Michala believes available staff — especially in poor economic times — don’t have the time needed to take on such a chore, and if they do it takes away from other aspects of the company.
While the majority of Michala’s clients prefer to remain in anonymity due to potential negative connotations involving cost cutting measures, her clients are there and she is doing fairly well in light of the poor economy.
“Business is good,” she said. “Especially now, businesses are looking for ways to save ... and I can save them money.”
That doesn’t mean it’s been easy, though.
The hardest transition has been the networking aspect of her new role, she said, as often in the 25 years working in human resources she hasn’t had to come face-to-face with clients to pitch her services.
“I’ve never been in sales before,” she admits, “but it’s been a great learning experience. I’m still learning, but I really enjoy getting out and meeting new people.’
The one selling point that resonates well with most company officials is cost cutting over head count cutting, as she believes her services can prevent layoffs and the additional numbers to Northeast Florida’s unemployment ranks.
“I always tell clients to call me before they make any layoffs,” she said. “I want them (company leaders) to make that their last resort.”
For more information on Michala and Expense Reduction Analysts, go to www.expensereduction.com or call 217-7211.
356-2466