Money for Nothing, Cost Containment for Free?
How Much Does This Cost?
Cost Containment is a fairly unique (and relatively new) industry. We don’t approach companies looking for lump sum payments. Instead, we approach them with the idea that they will be reducing their expenses even AFTER paying us. This idea sometimes does not translate well, so I’m going to flesh it out a bit more here.
So...It's Profit Sharing?
Okay, so our ultimate goal is to reduce your expenses in a certain area without altering your vendor, or reducing your quality of service. The realized savings are instant increased profits for your business. Our fee is a percentage of those profits, which means our service pays for itself and pays you money that you didn't have before. See what I mean? Let’s go through an example scenario…
Pre- Peak Scenario: Your company is spending $1M in credit card processing fees every year.
Solution: Peak’s proprietary solution reduces your credit card processing fees to $700k per year.
Fee: Peak collects a percentage of that fee over two years, in this case we’ll say 35%.
Post-Peak Scenario: Taking into account Peak’s fees, your company is now spending $805k in credit card processing fees every year.
Conclusion: Your company makes almost $200k in pure profit annually just by using Peak.
See how easy that can be? Of course there are more details involved, but big picture-wise that’s how the process works. At no point is Peak ever “taking” from your company, but we are being paid for our expertise and service. Our fee is based purely on savings found - no savings = no fee. Now I’m no fan of claiming anything is risk free, but our service is pretty darn close, if you ask me.
Have you had an experience with performance based fees? If so, we would like to hear about it. Post a comment below or click the button below to contact us directly.
Photo by Klaus Hitscher