bullpen power point 2017
TRANSCRIPT
Pat CaseyPresident2017
WHAT DOES BULLPEN DO?Our goal is to find contracts that can be
renegotiated which will deliver cost savings within a few months. Negotiation objective: “same vendor same service”.
We provide information and market data that allows our clients to make informed decisions that result in cost savings.
WHO CAN BULLPEN HELP?Companies interested in improving:
Cash flowSpend VisibilitySavings VisibilityContract ManagementVendor Management
TARGET MARKET
Companies based in the U.S.
Revenues from $5M - $50B
Sweet Spot: $100M - $5B
TARGET AUDIENCE The success of our projects is directly related to
gaining commitment from Sr. Management
We typically get hired and report to finance
Our deliverable is MONEY
Our day-to-day work is with middle management
Our projects are based on negotiations
SAME VENDOR SAME SERVICE Before: After:
Annual Commitment: $9,000,000Spend: $1,000,000
Month 9 of 36 Month Term
Annual Commitment: $900,000Spend: $900,000
New 36 Month Term
$100,000 annual savings
WHERE DO WE START?
WHAT DO WE LEARN?
DECISIONS
Agree on the categories to evaluate
Collect contracts and spend data
Engage external resource when needed
Renegotiate
Validate new pricing
QUESTIONS
Contracts:Do you know where your contacts are?Do you have contracts?Do you know when they will renew?Do they renew automatically? Is the person who negotiated the last
contract still with the company?
CONTRACT SUMMARY
MORE QUESTIONS…
• How much money is on the table?• Can terms & conditions be
improved?• Re-negotiate internally?• Should we hire and expert?• How much time will this take?
CONTRACT IMPROVEMENTS
WHAT IS A PRICING BULL’S EYE?
A “best-in-class” contract
How much of a premium are you willing to pay your vendor?
0% – 5% Best-in-Class5% - 10% 10% - 20%20%+
How many of your contracts are hitting the pricing bull’s eye today?
WHEN TO START?Until you can actually see the savings, we understand that it is difficult to add another project to the “TO DO” list.
What is the cost of not taking action?
Annual Savings
Monthly Savings
Weekly Savings
Daily Savings
Hourly Savings
$ 250,000 $ 20,833 $ 4,808 $ 1,111 $ 139
$ 150,000 $ 12,500 $ 2,885 $ 667 $ 83
$ 100,000 $ 8,333 $ 1,923 $ 444 $ 56
We often hear… “We don’t have time or resources to start any new projects.”
We believe a more accurate statement would be… “we don’t have enough information at this time to determine worthwhile.”
