Food Cost Management
What type of contract do you have: Is it a percent markup or case price? Are there minimums? Is there a penalty for going below minimums or a threshold of type/amount of products that must be purchased? Is there a fuel charge component: What is that based on? How do you know which contract type is right for your business?
We have specific answers for these types of questions based on deep experience and data. We know what type of contract you should have and the key elements that should be addressed to ensure fairness to you.
Often we recommend remaining with current suppliers, but at better pricing. You decide whether you want other suppliers to bid and you choose who they should be. (We also may be able to recommend qualified suppliers.) We do not disrupt trusted relationships built up over years, but we do bring knowledge of the marketplace heretofore unknown to you.
We are members of a GPO and enjoy prices leveraged by total membership volume.
Our supplier offers a special/unique service or product.
Commodities are out of our control, how can ERA help?
We cannot sacrifice quality for price.
Scott Noar, email@example.com, 856-295-1315
We conduct projects on a like-for-like basis. We may suggest product testing against current products, which many times results in better quality AND better pricing.
We don’t control commodities either, but we can impact all the other variables that go into your final invoiced price. We can negotiate a lower margin so that as market prices rise and fall, you pay lower prices by keeping the vendor’s margin lower.
Against what basis: What you are paying? What you were paying? We have access to an immense amount of market-based pricing for your type and size of operation.
GPOs are paid by the supplier, so the more the supplier makes, the more the GPO makes. In contrast, ERA is paid from the savings, so the more you save, the more we make. The GPO is a for-profit organization. The GPO will negotiate prices on products the majority of the members use, not necessarily the products YOU use. Are you receiving manufacturers’ rebates? If not, then the GPO is ─ and those can be worth hundreds of thousands of dollars!
Our suppliers have been our partners for years.
We can include this special/unique service or product in the RFP.
We have a contract that guarantees what our broadline supplier can charge us.
We monitor our prices regularly.