Case Studies
We work closely with clients to find savings in Communications, Energy, Business Tax, and Insurance. Here are leading examples.
Communications Case Studies
Situation
Action
A large South Jersey non-profit was using Verizon for local service and paying Sprint for their long distance service. We met with the business manager and discussed marketing their communication cost. I told them all we needed was a copy of last months’ bill. They pointed to the file cabinet across the room and said, “I have no idea what we are paying, you can start pulling the invoices from the file cabinet and tell me.
We spent 4-5 hours pulling and matching up Verizon and Sprint invoices. We took the bills back to our office and put together a spreadsheet listing all the Billing telephone numbers (BTN) by location. This was the first time the client had a full accounting of all the lines for which they were paying. The client was spending over $40,000 a month on local and long distance services. We took this information and as an independent consultanting firm, we took this information out to multiple markets and received several proposals on the account. We were able to save the client over $14,000 a month by switching their account to an independent 3rd party provider. We also set up a service procedure between the client and the provider that streamlined the response to any service issues.
Situation
Action
A prominent multi-state organization contacted HBS to analyze their existing telephone system. The customer had 9 locations in 4 states, each with a different phone system serviced by different providers.
We met with the client and asked them for a copy of their most recent bill from each location. We then held a brain storming session to determine which services of their existing systems they liked and what they hoped to achieve by implementing a new system. This enabled HBS to identify which providers would be best able to meet their needs.
As a result of our meeting, we were able to approach 5 providers offering a Hosted Solution designed to tie all 9 locations together. The customer is interested in staging this installation over a 12 month period and we currently have 4 locations up and running. The organization is very happy with their new Hosted service and the commitment HBS applied to the transition to get the Hosted Solution implemented. Oh, I forgot to mention…they were really excited about the savings our Hosted Solution added to their bottom line.
Energy Case Studies
Situation
Action
A prominent Tri State Real Estate Management company had purchased a building and asked us to market their electric. The previous owner was on an hourly rate which offered a lot of uncertainty. In fact, a month before we took over the account, the Philadelphia area experienced the Polar Vortex and the Peco electric rate jumped from around $.07 cents to over $.20 cents, costing the previous owner an additional $600,000 in 1 month.
As an independent broker, we marketed the account to over 15 companies. We were able to lock the account into a fixed price, bringing cost certainty to our client and saving them hundreds of thousands of dollars annually, compared to what the previous owner had paid over the prior year. Since electric prices are very competitive, we advised the client to start looking at renewal prices now, even though their renewal wasn’t for several months. We again went out to multiple providers and we were able to lower their cost for electric by an additional $.01 cent per kwh saving the client an additional $650,000 a year for the next 2 years.
Situation
Action
A leading national real estate management company purchased a building in Newark, NJ and asked us to market both their gas and electric accounts. The previous owner used a third party provider whose contract was about to end.
Because we are an independent broker, we were able to market both accounts to 16 providers. We saved the client over $335,000 a year for 3 years, on their electric account alone.
This is a nice way to buy a building…being able to stick an extra $1 million in your pocket. Needless to say, the client was very happy!
Payroll Tax Case Studies
Situation
Action
A prominent bank located in the Northeast had just acquired 14 new banks. We met with the head of the tax department because they were concerned that there was a problem with their new tax rates in NJ and PA. They contacted the state on several occasions but never heard back.
During our analysis we reconstructed these purchases, reviewing the former rates of each bank and how the state recorded the transaction. Each bank can be looked at as having a checking account with the state. What was done with the money in their account? If these banks had already begun paying into their tax accounts for a given year, did the state recognize the payments made?
After reconstructing the transaction, we found that the client was due a refund of over $5,000,000 between the 2 states. We spoke with both states, verified our findings and both NJ and PA issued refunds.
Sales Tax Case Studies
Situation
Action
A prominent bank was going through a growth spurt building multiple branches in the Tri State area. They had hired their accountant (part of the Big 4) to do a sales tax audit. They were told by the firm that they qualified for a $500,000 refund. When the firm went to the state, their claim was rejected but the accountants sent them a bill for close to $200,000.
Needless to say, the CFO was not very open to speaking with us when we began our discussion. I explained that our team was headed up by the former Deputy Director of the Division of Taxation and that all of our auditors were former state auditors. These former auditors knew what to look for. The topic we focused on was “What is classified as real property”?
The bank had hired a contractor to build granite counter tops. During our analysis we found the contractor had paid taxes on the granite when it was purchased from the supplier. Once the counter tops were made, they became real property. This is a tax exempt transaction.
We also found similar evidence dealing with bank boxes and cash machines. As a result of our efforts, the bank received a $5,000,000 refund.
Insurance Case Studies
Situation
Action
HBS was referred to an ambulance company located in South Jersey. As I was walking into a meeting, I could hear the owner screaming at someone on the phone. When he hung up, I asked if everything was alright because he sounded very upset. He apologized and said that it was their insurance company, they just canceled our auto policy.
Obviously, this was a big issue that needed an immediate response. We contacted our insurance partner and told them we had an emergency. Within an hour, we were all meeting together and discussing strategies. We found the client had an assigned risk policy with the State, therefore, they were actually paying a default rate . We spoke to several of our providers and we were able to get standard coverage for the account within 3 days, saving the client over $50,000 a year.