A Penny Saved Is A Dollar Earned (In Future Savings)

It may seem a bit farfetched to consider that you can convert a penny of savings into a dollar of earnings. After all, that means that your savings are multiplied a Hundredfold.

Well, look at it this way. You send your freight bills out for post audit and among the overcharges that the auditor http://www.freightrevenue.com recovers is $200.00 because a shipment was rated by weight, even though the contract allows a mileage rate for shipments of that size and the mileage rate is $200.00 lower than the LTL rate.

However, since you have a 50% contingency fee arrangement with the audit company, your net savings are only $100.00. You normally make this shipment once a week, and because your contract with your carrier has a year to go, you can save $200.00 for each of the next 50 shipments during the life of the contract if you rate them by mileage.

This will add up to $10,000.00 of savings over the life of the contract. (And you don’t have to share these future savings with the audit company.) So your initial $100.00 net savings will ultimately earn your company $10,000.00 in future savings, which is the hundred-fold multiplier that we mentioned at the outset of this article. We think that Ben Franklin would have been pretty pleased with that result. Wouldn’t you?