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International Franchise Association

ERC Franchise Expense REduction Coaching Who is ERC?

Expense Reduction Coaching™ (ERC), is a franchised system, which is based upon the "ERC Corporate Cost Reduction" process. ERC's cost reduction consulting programs have been in use since 1993 and have been directly responsible for generating significant savings for corporate clients in many industries.

Expense Reduction Franchise Owners are trained to market and perform Expense Reduction Coaching™ services designed to reduce long-term business costs, while using ERC's proprietary expense reduction franchise software. Our expense reduction franchises are not required to sell specific cost reduction products, but instead are trained to analyze their client's business expenses, negotiate with suppliers and make expense reduction franchise recommendations which result in long term cost savings.

In addition to their core competencies, our expense reduction franchise owners partner with a group of expense category specialists, selected with the goal of delivering a thorough review of all applicable business expense categories.

Clients of expense reduction franchisees can obtain results at a minimal cost based on actual savings. Expense Reduction Franchise Business services are designed to be performed on a contingency basis.

The need for the service

In today's competitive business environment, reducing expenses is just as important as increasing sales. A practical, long term expense reduction solution is to reduce the outlay for regularly purchased goods and services for which many businesses "unknowingly" overpay.

The "ERC Corporate Cost Reduction" process is designed to assist expense reduction franchisees in targeting "indirect and consumable" expense categories, zeroing in on the most common profit leaks and implementing cost reduction solutions to eliminate them. Our expense reduction franchise operators can negotiate better terms and pricing with existing suppliers or find that their client would benefit from using alternative sources.

Even small and mid-size firms can be wasting significant amounts of money on "indirect" and "consumable" expenses. Individually, any one of these categories may seem insignificant but when combined, they quickly add up to thousands of dollars.

Cost Containment Focus Purchase More Effectively

Expense reduction franchise owners do not recommend cutting employees. Instead, their cost containment focus is to show their clients' people or purchasing department how to cut expenses, while always receiving the same or better quality goods and services at a reduced price.

Expense reduction franchise owners begin by targeting those categories specific to the client's business which exhibit the greatest potential for cost savings.

After reviewing the purchasing records and determining the client's needs, the expense reduction franchise begins a 7 step cost containment process called "ERC's Road Map to Cost Savings". This cost containment consulting process coupled with the expense reduction analyst's Best Practices and Knowledge Base developed by ERC, enables our franchisees to systematically generate significant percentage savings in most expense categories that are reviewed. The end result is that our expense reduction franchisees are able to benchmark their client's current expenditures and demonstrate how they can consolidate suppliers and reduce costs on a long-term basis. Expense reduction franchise owners then quantify options and make written cost reduction recommendations. After the supply chain management recommendations are approved, our ERC franchisees assist in the implementation of the programs.

Shared Savings Pay for Performance

ERC franchises work on a "Pay for Performance" basis. No fee is charged unless their clients save money as a direct result of their cost reduction consulting efforts. After their recommendations are implemented, our expense reduction franchise owners share the savings with their clients over a negotiated period of time. Following the negotiated period, 100% of the cost savings are retained by the ERC franchisee's clients.


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