September 1999

How an Outsider Can Help Your Business

It's no secret that businesses are constantly looking for ways to reduce their operating expenses, but few business owners know how to go about this effectively. Fortunately for them, there's AMK Associates (AMK).

AMK provides a service whose sole function is to save other companies money. Its goal is to make sure that vendors are supplying the best quality at the best prices.

AMK's president, Arleen Kahn, founded the company 9 years ago. Since then, Kahn has helped to provide businesses with annual savings ranging from $30,000 to $250,000, by researching, negotiating and re-negotiating with suppliers.

"A business owner or executive is probably spending all hours of a day running his or her business," says Kahn. "Since companies are constantly looking for new clients, trying to keep current ones happy, and trying to come up with new products and ideas to grow the business, they might not have the time to spend shopping around for lower prices on many of its operating expenses. Additionally, the office manager probably wears several hats. He or she is continually being bombarded by suppliers and isn't likely to have the time or expertise to sift through all the conflicting offers being made by salespeople," said Kahn.

All these factors are why many small and midsize companies are turning to cost management consulting firms, including apparel and textile businesses, whose annual overhead on shipping (including freight forwarders), printing, office supplies, service contracts and telecommunications often runs high.

"The concept of a cost management consultant sounded a little fishy initially," admits Lewis Sidorsky, controller of the Automated Concepts, Inc. and a client of Kahn's. "But we figured that we really had nothing to lose," said Sidorsky. Kahn saved ACI more than $80,000 a year by changing its long distance carrier and delivery service, and negotiating new deals with existing printers and office suppliers. Sidorsky warns that it can be personally difficult for you and your managers when you're trying to negotiate a much lower price with vendors with whom you have had a long-standing relationship. Sidorsky says Kahn did all the research and negotiating with the vendors. "I only got involve d in the final decision–making stage," he says. "I didn't have to sit around and deal with vendors 5 or 6 hours a day."

By supplying a service solely dedicated to paring operating expenses, AMK's cost assessment can help a company reduce its overhead, which, in turn, will increase its profits. And that, says Kahn, "is truly a win-win situation."

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