Case Study – Hospitality Group – Telecom
Case Study: How A Hospitality Group Saved Over $78,000 Per Year On Their Telecom Expenses
BENEFITS SUMMARY:
Significantly reduced fees for telecommunications services.
SERVICE:
Risk-free review of telecommunications cost structure and search for cost saving solutions.
SITUATION:
A hospitality group in Michigan employed Don Johnston of Schooley Mitchell of Detroit to conduct a cost-saving analysis of their telecommunications cost structure to optimize their bills. Schooley Mitchell reviewed their services at five different locations and conducted analysis to locate any possible cost-saving solutions while maintaining a similar level of service.
ANALYSIS/RECOMMENDATIONS:
We reviewed their current telecommunications cost structure, and, since we are independent of all vendors, our cost saving recommendations considered all options in the marketplace which included the current providers. After considering the type of business, their telecom environment and their available alternatives, we compiled a Value Report that detailed the existing environment and a pre-negotiated future state. The Value Report included profit-increasing recommendations, which included recommendations for the current and alternate providers. Because we have structured over 21,000 deals, use proprietary software for analysis and have the negotiation power of a large national organization, we were able to come up with multiple cost saving recommendations for their telecommunications services.
RESULTS:
The hospitality group had various telecom services with several different providers, including local service, long distance, data, and miscellaneous fees such as TV cable and maintenance. Across the five locations, the hospitality group was paying for six local lines that were completely unused. Schooley Mitchell negotiated significant savings with several vendors, eliminated the unused lines, and canceled redundant fees such as double-ups on maintenance. Once the client selected the cost saving recommendation they preferred, Schooley Mitchell handled the implementation. We were able to organize their telecom services and save them over $78,000 per year. Schooley Mitchell will continue to manage their services in the future, and conduct continuous post-audits to find even more savings. The hospitality group was so happy with the savings that they gave Schooley Mitchell two more locations to analyze for cost-savings.
