1. A Practical Guide to Saving Money and Building the Bottom Line for Study Group Members

2.  Most companies focus on raw material or high-dollar expenses, yet good savings exist in routine purchases  Few companies define specific expense areas and systematically review supplier expenses  Creating a program of regular cost review by category, or using external consultants to help, can yield quick additions to the bottom line  Ben Franklin was wrong … a penny saved is worth 6 to 10 pennies earned

3.  Review Waste Disposal Contracts  Review Merchant Services Contracts  Review Utility Bills for Errors  Review Cellular Bills for Savings  Review Janitorial Supplies and Paper Consumables the savings can really add up!

4.  Read contracts to determine expiration dates and termination notice required  Send letters to providers (certified mail) to announce intentions to rebid contract  Look for opportunities to consolidate multiple locations with one provider and seek multiple bids  Not recycling cardboard? It may be a revenue stream to offset waste costs Target Savings – 8% to 15%

5.  Review contracts for expiration dates  Seek out multiple bids focused on ancillary charges as well as base rate  Look for providers with master agreements from credit card companies rather than resellers Target Savings – 10% to 15%

6.  Review electric and gas bills for accuracy of meters in use  Check for time of date tariffs for 24/7/365 locations to save money  Schedule reviews with utilities to analyze charges and rates in regulated states  Get bids from energy brokers in deregulated states if you haven’t already done so Target Savings – 5% to 10%

7.  Review your bill for accuracy – ghost phones, unused features, unexplained charges all add big dollars to cost  Look for ways to optimize plans with current providers to reduce unneeded minutes and data plans  Consider flat reimbursement plan for employees needing phones  Try to consolidate carriers to drive bigger discounts Target Savings – 15% to 35%

8.  Compare prices with several resources and look for companies that can sell everything at a good price  Be sure to include office product suppliers in review  Think twice before buying these items from general line wholesalers  Be sure to standardize selections among all store locations  Great supplier consolidation play! Target Savings – 10%-15%

9.  Free initial analysis of spending to determine potential savings areas  We cover 35 expenses categories and have solid experience in c-stores  Savings are negotiated and ready to implement within 8-10 weeks  Fees are based on 45/55 split of results – no savings, no expenses  All purchases are audited every two month to document results Typical Savings -- $1,500 to $4,000 per location

10.  50+ locations in Midwest  Major areas of savings included: ◦ 11% savings on Snow Removal ◦ 16% savings on Vehicle Maintenance ◦ 15% savings on Office Supplies ◦ 16% savings on Employee Background Checks ◦ 23% savings on Telecom & Internet ◦ 13% savings on Uniform T-Shirts Total Savings Found -- $126,000 per year

11.  Millions saved for c-stores, including: ◦ Daily’s – Nashville, TN ◦ Huck’s – Carmi, IL ◦ Thornton’s – Louisville, KY ◦ Super Quik – Ashland, KY ◦ Great Stops – Durham, NC ◦ Patriot Oil – Green Bay, WI ◦ MaxFuel – Hopkinsville, KY ◦ Cheer’s – Paducah, KY ◦ Family Express – Valparaiso, IN ◦ plus many more

12.  Please contact us for a free initial savings analysis to see what we can do for you Rudy F. Moeller, Jr. Vice President, Client Services Alliance Cost Containment 502-805-1274 office 859-576-8387 cell Rmoeller@alliancecost.com