Aligning cost reduction with environmental initiatives.

Tariff Reduction

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In the search for tariff reductions we can assess a wide range of supply lines – not just the utilities.

The Method

The way this works is as quick and un-intrusive as we feel we can make it.

We have an initial meeting with the client to identify areas in which we could help save money. The initial meeting is an important opportunity: in addition to explaining more about our method, it is mainly a time for us to listen and understand what matters most to the client. That way we can jointly identify the areas that would merit more detailed analysis. After that we collect a few sample documents, such as a recent invoice or the relevant contract. We then work off-site to find tariff reductions, before we report back with recommended solutions. The standard reporting time is two weeks.

If a client likes what we recommend, we implement it. After that we keep an eye on things to ensure that the supplier continues to deliver what was agreed.

We never go ahead with implementing a saving until instructed to do so by the client.

We never raise a fee until the saving has been delivered and is in the client’s account. Our fee is usually a share of the saving, i.e. we are paid out of our success, and we work hard to keep our rate competitive.

Savings Categories.

Here is an alphabetical list of the areas where we have worked on tariff reductions, to date – please note the diversity. Don’t forget there are other savings on offer under the Using Less section:

Archiving/Storage,  Catering services,  Cleaning services,  Drinks,  Electricity,  Facilities maintenance,  Food,  Funding/Financial,  Furniture,  Gas,  Grounds maintenance,  Insurance,  IT consumables,  Janitorial /Cleaning materials, Laundry, Office supplies /Stationery,  Oil & LPG,  Photocopiers/Printers/MFDs,  Postage & DX, Printing, Security equipment,  Staff/Human Resources,  Telecoms,  Transport,  Utility bill validation. Waste water & sewerage, Water supply.

If you can’t find the area that you are concerned about here, tell us. We can probably still help. After all, everything in the list above we had to do for the first time at some stage.

Examples of Savings Achieved

Here are some examples of tariff reductions we’ve achieved recently. Please note that these are significant amounts of money, and thus worthwhile projects:

  • Major public school: £650,000 for a range of services over 3 years.
  • Electricity: rebate of £150,000 for an academy.
  • Gas: saving of 13% for a £100,000 one-year contract.
  • Heating costs: 25% reduction annually for a prep school.
  • Oil: 13% on a £300,000 annual supply for a large school.
  • Cleaning materials: 17% annually for a Cambridge University college.
  • Photocopiers/printers: £80,000 for an academy.
  • Waste management: £18,000 for a small independent school.
  • Laundry: £40,000 per annum for Lord’s CC.
  • Stationery & janitorial supplies: 18% annually for an independent school.
  • Telephone costs: every client that’s asked us to look (even when staying with the same provider). Savings have been as much as 43%, but around 20-25% is typical.
  • Utilities: we’ve always beaten in-house broker’s best price for spends over £20,000 per annum.
  • Water pipe installation: saving of £20,000 (47%) on the cost of installing a new water pipe in a school.
  • Grounds Maintenance: saving of £18,000 (41%) on a 3 year contract for an academy.