Expense Consulting was recently brought in to assist an organization that has been using an energy consultant for all of its electricity purchases. The group’s aggregate annual spend is greater than $5 million and their prior energy consultant claimed they had saved our new client more than $2.3 million over the past three years by their savvy procurement acumen.
Expense Consulting conducted an independent analysis and found that the energy consultant’s claim was pure fiction. The agreement was presented as providing budget certainty; yet pricing was volatile and the organization overpaid by more than $3 million than if they had purchased their energy directly from the utility! The graph below clearly demonstrated the actual volatility.
What accounts for the disparity between the prior Consultant’s claim and Expense Consulting’s findings? Aligned Goals! Oftentimes, consultants are compensated by suppliers and, as a result, establish a direct conflict of interest for the organizations they’re trying to support. On the contrary, Expense Consulting merely shares in actualized savings. Using a qualified, contingency-based firm that can act as an extension of your own team will help an organization achieve its best pricing at the highest possible service level.
EnergyCenter Every business consumes energy. We hope you find this chart useful when benchmarking your energy costs. Please note, Expense Consulting is a licensed utility aggregator, so be sure to contact us for the best possible energy pricing.
About Expense Consulting Expense Consulting is a full-service accounts payable auditing and cost reduction consultancy, helping organizations significantly reduce operating expenses. Since 2009, we've helped hundreds of organizations recover millions of dollars of over-billings and have secured millions of dollars in future cost savings. To learn more about reducing your organization's expenses, contact us at (860) 761-3500.