John Carpenter - A $1 Of Savings Is Worth $5 Of Revenue
John Carpenter of Expense Reduction Analysts observes that topline sales is a powerful growth engine for business, but controlling expense is an often neglected but highly effective way to grow. Nothing is more efficient at increasing profit, EBITDA, and valuation than a dollar of savings on expenses. A dollar in savings will increase EBITDA and profit by one dollar. On the other hand, only 20 cents of a dollar in sales will make it to EBITDA and profit. Likewise, when it comes to valuation, a dollar in savings is over five times more efficient than a dollar in sales.
John provides a 4 step process for wringing every extra dollar out of your expenses without hurting your capability to deliver your service. Listen to the end to get the details of his gift to our listeners.
Show highlights
03:38 You can’t only focus on expense control when times are tough - you do it across the economic cycle.
05:52 You have to combine an effective procurement process with a continuous read of where market terms and conditions are.
07:02 Controlling expenses is the most efficient way to increase EBITDA.
09:39 Example of how a focused expense management program contributes to profitability.
11:23 What a good expense management program does for the CEO/CFO decision maker.
12:40 A 4-step implementation process for expense management.
17:57 Learn about John. Email John at jcarpenter@expensereduction.com or call at +1.908.803.2885.
Email Jay at jay.kingley@centricityb2b.com
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