What we do.

1. Working Together To Find
Hidden Savings!
Cost Reduction Solutions from Industry Experts
…without disruption
To Your Company’s services or budgets.
Jim Massengale | Director
Expense Reduction Analysts, Georgia
137 B Commerce Avenue
LaGrange, Georgia 30241
T 888-557-5057 ext 111
M 706-594-5241
jmassengale@expensereduction.com
www.expensereduction.com

2. About Expense Reduction Analysts
• World’s leading global consultancy focused on
reducing G&A/non-core operating expense
• Network of more than 700 consultants worldwide
(30+ countries), 250+ in the USA
• Proprietary benchmark data (Procurion ) fromTM
more than 14,000 cost-reduction projects
• Find average savings of 20% in G&A/non-core
expenses (Process/Contract/Price)
• Contingency fee based outsource resource.
Copyright Expense Reduction Analysts 2009 2

3. About Expense Reduction Analysts
We bring clients our:
1. Industry and purchasing knowledge in G&A
categories.
2. Current industry benchmark pricing from already
completed projects in our Procurion database
3. Help with implementation of projects for optimized,
sustained savings by monitoring results over 24
months
4. Time to work on strategic cost categories and/or the
mission of the core business or service
Copyright Expense Reduction Analysts 2009 3

4. Just a few of our clients…
Copyright Expense Reduction Analysts 2009 4

5. Understanding Your Company:
• Company’s History
• Current Goals and Objectives –
both market based and financial
• Measurements for Success –
Sales, Margin, Profit
• Long term Goals
Copyright Expense Reduction Analysts 2009 5

6. Questions…
What trend is Your Company seeing in their G&A/non-
core expense categories?
What monthly bill(s) does Your Company dislike
paying the most in their G&A/non-core expense
categories?
Copyright Expense Reduction Analysts 2009 6

7. Expense Categories to Consider
Chemicals Merchant Card Processing
and Banking Fees
Cleaning
Office, Stationery, Printing
Employment Services Supplies
Equipment Maintenance Packaging
Factory/MRO Consumables Payroll Processing
Fleet Management Print Services
Food Services Records Management
Freight: FTL, LTL, Intn’l, Small Telecommunications: Data,
Package Mobile, Voice
Information Technology: Temporary Labor
Hardware, Network, Software
Travel
Insurance: Business, Worker’s
Compensation, Property & Uniforms, Linens and
Casualty, Health Laundry
Janitorial Services Utilities
Laboratory and Medical Supplies Waste Management
Leasing Many others . . .
Medical Supplies
Copyright Expense Reduction Analysts 2009 7

8. The Process Yields Predictable Results
Our statistics* show:
Savings in 90% of projects engaged
An average cost savings of 20%
Realized 101% of predicted savings
*Based on over 14,000 Worldwide ERA projects saving our
clients $1.7 billion.
Copyright Expense Reduction Analysts 2009 8

9. ERA vs. Internal Projects
ERA will Find Greater Initial Savings
ERA will Monitor the Vendors for 24 Months
This is NOT a One Time Event
This is a 24 Month G&A Cost Cutting Relationship
Copyright Expense Reduction Analysts 2009 9

10. Lowering Non-core Costs Can be VERY
PROFITABLE…
20% Cost Equivalent
Today In Growth
Column1 Reduction
Revenue $ 100 $ 100 $ 130
Direct operating costs $ 35 $ 35 $ 46
Labor costs $ 40 $ 40 $ 52
Non-core indirect costs $ 15 $ 12 $ 19
Net profit $ 10 $ 13 $ 13
A 20% cost reduction = 30% Net Profit Increase, or
A 30% increase in revenue = 30% Net Profit Increase
Copyright Expense Reduction Analysts 2009 10

11. Where ERA Brings Value To Our Clients:
CLIENT
ROI
(Return on
Investment)
ERA
Time Invested
Our results are 100% measurable. Our clients can see where every penny was saved
and where we brought value to the process of expense reduction.
Copyright Expense Reduction Analysts 2009 11

12. Time requirements from Your Company team:
After the initial meeting, you will have already spent 20-25% of the
time needed to implement a category project with ERA.
We do all the “heavy lifting”. Point us in the direction of your General
Ledger and accounts payable invoices, and we will do the rest.
We would need a stakeholder meeting, baseline meeting and
recommendation meeting over the next 3-4 months (total: 4-6 hours).
From project launch through implementation will take 90-180 days
depending on the category. ERA does 95% of the work in the
“background”.
Copyright Expense Reduction Analysts 2009 12

13. Working with ERA
Our Client Engagement Letter
serves to:
• Explain how a contingency
fee project works
• Helps define the parameters
of a successful engagement
• Describes the terms and
conditions of our relationship
Copyright Expense Reduction Analysts 2009 13

14. Next steps…
Contact me at:
jmassengale@expensereduction.com
Copyright Expense Reduction Analysts 2009 14