A Penny Saved is $75,000 Earned

Penny SavedOne of the reasons our company is named Business Cents, is to emphasize the payoff that can come from managing even the little details.   We have all heard the saying, “A penny saved is a penny earned.”  In this case, a few pennies saved resulted in overall savings of $75,000 over a 5 year period.

The Situation
The company I was working with used a phone-based timekeeping system, where remote employees could use a touch-tone phone to clock in and out.  This system was critical to the processing of payroll and was very heavily used.  Because employees were usually performing their work at client locations, they used toll-free numbers, which carried higher than normal long distance rates.

The Savings
Upon investigation, we were able to negotiate lower line rates, reduce the number of lines required, and negotiate a 3 cent per minute reduction in long distance charges.  All totaled, these few cents here and few dollars there added up to a $15,000 savings per year, or $75,000 over a 5 year period.

Summary
Sometimes the expense savings that are available are overlooked because of habits, or just due to the day-to-day demands that take our time and attention.  Often, a fresh set of trained, experienced eyes is all it takes to identify thousands of dollars in savings.

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