It was a pleasure to help my client Joe decrease his uniform rental/laundry costs by 49%!
Joe, the CFO of a large food distributor connected with me because one of his biggest challenges was that the cost of his uniform program continued to escalate on a yearly basis. He needed an expert to help to resolve this.
Joe had an in-house Purchasing department, but they were running hard and fast to grow the core business from one location to four locations.
I hear it from so many of you…you work so hard to control the costs of your uniforms, but you end up repeatedly taking price increases year after year.
But it does not have to be that way.
Over many years working with Fortune 500 companies and others, we developed propriety formulas, and complex analytics to review existing uniform programs. These tools along with our preferred pricing program allow us to provide a customized uniform program for our clients. This results in optimized pricing, usage, and SKUS while staying focused on displaying a professional image for your brand and meeting the requirements of each client.
So how did we decrease Joe’s uniform costs so dramatically?
Here is a quick overview of three ways to save on your uniform costs:
1. Standardization
The first way towards program optimization is to clearly define the number and type of uniforms that can be used.
Why is this so important?
This provides centralized control of the uniform program which ensures a consistent professional appearance for employees in each and every company location. Standardization eliminates unnecessary SKUS and also prevents suppliers from introducing unauthorized, more expensive uniforms into the program over time.
2. Negotiation
The second way to optimize your uniform program is through proper negotiations.
What are “proper negotiations” you ask?
I can tell you that there is a lot more to it than obtaining three quotes from different suppliers and selecting the lowest-priced offering. Not everyone receives preferred pricing. Sales representatives continue to make new agreements. What was a good deal six months or a year ago may no longer be optimal. Knowledge is power. The more you can learn about the suppliers, the marketplace, who is utilizing the latest most effective processes and equipment, the more effective your negotiations.
3. Contractual Language
The third way to optimize your uniform program is through preferred contractual language.
How?
Like conducting proper negotiations, a deep dive into the contractual language you are presented can provide huge dividends.
NOTE: For maximum effectiveness, it is imperative that you take the time to ask for preferential treatment and have it clearly defined in the contractual language. Also, it is important to be sure that you do not overlook contractual language that can be detrimental in the future. For example, uniform suppliers consistently have evergreen language in their agreements that state that if you do not terminate an agreement in writing no less than 90 days in advance of the expiration of the then current term, then the agreement automatically renews for another five years.
The result was that we provided Joe’s company with an annual savings of 49% on their uniform costs and clearly defined the number and type of uniforms to be included in their program. We continue to audit the supplier on a periodic basis to maintain sustainable savings.
Obviously, my work with clients goes much deeper than what we covered in this article and I can provide more specific recommendations.
This will get you started…
Let me help you!
If you want to know how to save more on your uniform costs and how to quickly and easily optimize your uniform rental/laundry program, click here to qualify for your complimentary strategy session with me to explore that…and to find out what you can do to have a results breakthrough.
I have a limited number of appointments available and request that only business owners and executive management who are ready to take the next step and serious about dramatically increasing their results apply for a time to talk.
Jack Trotsky is known by his clients as “The Purchasing Consulting Master” and “Cost Slasher.” His business owner and senior executive clients say he provides a high level of measurable cost savings, a competitive edge, and lower operating costs and increased profitability year over year. Working with Jack requires no out of pocket costs. Pay only for results – you pay nothing until he shows you what you can save. With a Fortune 500 pedigree at GE, ConAgra, and Hunt-Wesson, he launched his purchasing consulting firm in 2015 and has grown it into what is today PurchasingResults.com. Jack has a long history of transforming procurement processes, implementing and managing change while providing a competitive cost advantage for businesses across a variety of industries. He has spoken all over the US and internationally, at universities, as well as at training & employee development workshops and conferences. Jack’s clients include GE, Gate Gourmet, Retail Companies-various projects including negotiated leased space, Large Food Distributors, National Dry Ice Company, Consumer Packaged Goods Companies, Industrial Manufacturers, Service Companies, and Food Manufacturers. He currently resides in the Denver Metropolitan area.