 Hey guys Ken Ross here, and I'm a business consultant that specializes in reducing costs for businesses by looking at their essential Expenses and today I'm gonna do a little something different for you today I'm gonna spend some time on the whiteboard here, and I'm gonna kind of break down some of the more dollars and cents of this Particular process what it really looks like to save money right and I've sent you or I've given you the tools right so if you Want to do some of this on your own you're certainly welcome to But I would hope that if you haven't seen my channel or this is the first time you're looking at this that you would check out the First video, which is how to save money today go ahead and check that out come back to this video and Start to really understand what it is. I'm gonna go into here, but I'm going to spend a little bit of time in a scenario here Let's say you're a manufacturing company, and you have several different businesses or different services I'm sorry several different service. You certainly have different businesses to that would be great Several different services and those services are what you use to operate your business, right? I'm going to look as a cost reduction specialist. I'm gonna look at some of the low-hanging fruit here I'm gonna look at some of these expenses here that really could benefit from some deep analysis And so for instance telecom You that that includes not just phone telephone, right? But mobile phones or wireless right and Internet it can also include TV, which I'll get to in a second But this is something that you need to kind of operate your business You need to be able to accept incoming phone calls You need to take orders right you may have a website and you get orders from your website if you're in manufacturing or You certainly have people out in the field Potentially grabbing different things different goods that you use to provide The manufacturing that you need like there could be certain Screws or widgets or things that you need to operate your business, right? You're gonna have people that you're gonna need to contact and stay in touch with so you're gonna have a mobile expense there as well That is all Part of your telecommunications package Merchant services is another one is another one. It's separate from telecommunications and that's how you're gonna get paid by your Vendors if vendors pay you for instance if you're providing services to them or they're providing refunds as well as your customers Right your customers are ultimately the biggest part of your merchant services Expenses here and that's accepting payments Using some type of platform either a point-of-sale terminal or you have virtual terminal Maybe even you have a website where people can place orders and they check things out and the merchant services provider provides a hook there You're gonna have an expense To do that there is going to be a percentage they call it right and I've been in the merchant services World for a long time. I work for the largest payment processor in the world for 13 years So I know a little bit about how this all works Waste is another one right there are certain things you're gonna throw away You're gonna manufacture things you're gonna produce waste products Or you're gonna want to get get rid of some things because hey, I've produced this very nice thing for for my clients But they don't want all the stuff that comes with it utilities last kind of thing You may operate maybe even a storage facility where you're storing some of your products Or you may have forklifts where you're moving things around and and you know those types of things utilities In those particular instances require a little more in-depth analysis there could be expenses for maybe forklifts or Operating of certain tools they use certain types of fuel And so or even your fleet if you have say you have vehicles and you have people that drive those vehicles And they have fleet cards where they can put gas in their car Or any of those types of things I worked for the largest class 1 railroad and in my My time there I come to understand that fuel is one of the largest expenses in the railroad It competes with employee costs right and if you're able to save 1% in fuel costs That's a hundred and forty million dollars To that business what would that do for your business if you had a business that big? I don't know but I certainly looked at that and said hey That's something worth spending some time and looking into so utilities is another one So let's kind of break this down and get down to some numbers here Let's say for instance for the sake of this argument I'm gonna use some really nice round numbers for myself make this easy for you and Do the math right here in front of you. So here's a thousand dollars here for this expense Let's say that's what we spend here and for merchant services. We have a total bill North of a hundred and forty thousand dollars in In processing but you're gonna you're gonna pay a fee Let's say three percent not maybe a little bit high But I'm gonna be conservative here on this and that's forty two thousand dollars in expenses on this hundred and forty thousand dollars, right? That's three percent So that's where that comes. Oh, I did the math wrong already. It's not forty two thousand. It's forty two hundred forty two hundred There you go. All right My mistake can't even read my own notes. Okay waste here. We'll make that easy too. We're gonna say that's two thousand and Utilities, let's say fifteen hundred There you go So this is what you pay every month This is your total like let's put up the total here and I meant to do the math forty two plus a thousand. That's fifty two seventy two Eighty seven eighty seven hundred right this is how much in essential services For these four categories That you need to operate your business and they're not negotiable. They're not something you can just say Let's just eliminate you have to decrease these right? You can't in order to make this a smaller number. You have to decrease these Individually you have to work on each one of these individually you have to understand how to make this smaller, right? How to make this one smaller? Can I lower this percent? You certainly can you can negotiate that right and change this You can look at your waste bill and say how much waste do we produce and is it worth? Investing in things that I have now or there are other creative solutions that we can come up with to lower this But what I would say is that in our analysis and in working with customers over 20 years 25 to 28 percent is about what you could look to save in each one of these categories and It's individual not just as a whole where I can't just say 25% as a whole We have to look at each one of these individually and there certainly could be room for improvement in other places But for the sake of this argument, I'm gonna change these numbers right instead of a thousand here. It's 750 That's 25 percent Off this one this one here set of 4200. It's gonna be 31 50 It's 25 percent this one here pretty easy That's 750. This is 1500 right? It's just two of those and then this one 1125 right That's your new expenses if you slash all of these by 25 percent right which then makes this bottom line Right this different and that's going to be I had I had the number there but I'm gonna have to do it all over again here 25 and Let's see put the one here because that's 12 and 7 8 9 14 15 One up here for five six 6,000 This is your new your new expense right lowered by 25 percent And the difference here is a bottom line Expense right it's something that you get to take home But you didn't get to take home before right? So if you look at all of the expenses, right? And let's say this right here is your employee cost Right. This is your goods cost And it certainly could be different this right here a different services And this is your take home right or the business gets to take home. We've lowered this We've made this smaller by cutting this down and Adding it This part right here It's added to your take home. This is your savings It's the opportunity to save money and ultimately in the end change The bottom line of your business now. What could your business do with this extra amount of? Dollars this is believe this is 1275 or 1175 right lemon 75 extra 1175 what could they do With that money every month That's something you should really look at and understand that if you spend the time and an effort and necessary of Really breaking this down and saying hey Can I look at each one of these and can I lower my expenses because in the end? It's going to turn my service providers into a smaller part of my overall profits here and my expenses So my revenue right my take home is larger and and and maybe we can look at this cost right the goods cost Lower some of that or the employee cost certainly don't necessarily Love to talk about employee costs per se, but there are certain costs for employees like health care costs or Insurance that you can look at that doesn't change how much it costs you to pay your employees, but certainly Supplement what the employees are being paid and that's something that always would be great for you as a business owner and Ultimately as an employee would make an employee happier because hey my business is actually investing in me and they've they've lowered these expenses for me so that I can live and operate and be an efficient worker and For the business the business gets to take home more of its profits So with that that's kind of what I have today. That's what I want to explain I wanted to help you understand and navigate what it really looks like to look at your expenses as Several different things here and say hey, how do we make this? Something that really can benefit you as a business owner as someone who wants to operate a business and Rely on people to look at these things for you in the different details about your services to be able to do this Effectively and efficiently because if you're trying to do this yourself and you're certainly willing and able and certainly Capable of doing it you need to understand and you need to be able to invest in the right tools and the right understanding of this of each one of these To lower them efficiently. So that's what I have for today Would love to hear your comments in the comments section would love to understand what it is You're doing to save money. Like I said, I have a goal this year to save 52 businesses money regardless of what it cost me I feel like this example here will help you understand the potential of what I'm giving you here as far as information And would hope that you would spend the time take a look at my playlist go through that process and Understand how to navigate your bills effectively make sure you talk to your friends and understand what they're paying for So that you don't overpay for your services too, and if you lower your expenses I would love to hear about that. So please tell me that in the comment section below Please visit my website. I am Ken Ross comment until next time. We'll see you