We've spent the last years helping hotels become financially aware of their vendor relationships. In other words, we balance the power dynamic between hotels and their vendors. Here are our results:
Client A is multi location hotel company, with 30 locations across Maine and New Hampshire. Schooley Mitchell did an analysis of it's merchant service spend:
- Merchant Annual Spend = $509,201.40
- Merchant Annual Savings = $39,037.25
Client B is cottage rental company in Southern Ontario, with twenty properties, each supplying propane tanks. SM analyzed it's compressed gas expenses:
- Total Annual Spend = $113,623.08
- Total Annual Savings = $21,346.80
Client C is an amusement park offering on-premise accommodations, dining experiences, and outdoor events in West Springfield, MA.
- Merchant Service Annual Spend = $212,117.28
- Merchant Service Annual Savings = $130,123.08
- Telecom Annual Spend = $35,871.48
- Telecom Annual Savings = $6,938.16
In total, Schooley Mitchell saved $137,061.24 in annual expenses for the client, reducing the costs by more than 55% without reducing the quality of services.
1. Discovery Phase
- A signed service agreement gets us started.
- A signed letter of authorization allows us to access the information we need.
2. Negotiation Phase
- We gather your invoices to begin our analysis.
- Our analysts at Head Office dig into the details, contact vendors, and prepare value reports.
3. Implementation Phase
- After presenting savings, we will handle any planning and implementation required.
- We only implement recommendations approved by you.
- We monitor your expenses on an ongoing basis.
Merchant Services
Do you reference the "effective rate" to evaluate how competitive your processing fees are?
A blended pricing structure makes it more difficult to fully understand all the factors impacting your fees.
Do you know how your current processing environment impacts your processing fees?
How you process payments and capture data can have a big impact on your monthly fees.
Have you asked your processor to provide you an "interchange-plus pricing" quote?
This pricing structure is often the least expensive and most transparent option.
Telecom
Have you conducted a recent usage audit across your telecommunications system?
In many cases, we find inefficiencies and redundancies in the number of lines and features.
Have you considered moving to a Voice over IP platform?
Cloud based telecommunications systems typically provide unique features at lower costs.
Do you know when your current plan automatically renews?
Companies typically only have a 30-day window to make changes to their current contract.
Compressed Gases
Have you conducted a “lease versus own” analysis of your storage tanks?
Different vendors offer very different pricing structures.
Are you paying too much for your specific delivery times?
Being more flexible on delivery times can significantly reduce your costs.
Do you review your monthly statements to ensure the correct charge codes are used?
Charge codes can be confusing and require a review to ensure you are being charged correctly.
Larry Nipon
Strategic-Partner
