Contract negotiation is just one aspect of Beaconplus’ services. For example, they also review historical costs for their clients and are constantly keeping up-to-date with technological changes to identify savings. An example of a historical overcharge would be for their client Midland Orthodontics, where they got £2,300 refunded, as a result of water leak. The ongoing annual savings for correcting these costs are £6,000.
Beaconplus don’t necessarily have to switch suppliers to make savings for their clients, as they have contacts within most companies and access to consultancy prices with certain suppliers.
Beaconplus’ services are completely performance related and they don’t take any commission from suppliers (unlike brokers), which ensures that they can put their clients onto very competitive rates/arrangements. The commission brokers receive is normally added to the prices the customer pay. As Beaconplus don’t take commission from the suppliers, they can get the lowest prices for their clients and share the savings with them. On average, they have saved their clients (34%) per annum, on their telecoms and energy costs.
Other than collating the relevant information at the start of the relationship, Beaconplus require very little involvement from their clients going forward. A big part of their service is about saving their client’s time, and making them significant administrative and costs savings. Dealing with telephone faults and fixing energy overcharges are examples of how Beaconplus save their client’s time.
Even if you’ve reviewed everything, Beaconplus’ reviews are very comprehensive and they often identify savings opportunities (or overcharges) of which their clients were completely unaware (point 1 above is one example). In many instances, Beaconplus have found that the way companies review/check their charges is by comparing current year’s costs with previous years’ costs, rather than a detailed review/justification of every single service they are paying for. Often Beaconplus identify overcharges that have been ongoing for a long time (years) resulting in backdated refunds. Having an additional review is completely free of risk to their clients, as if they don’t identify any savings opportunities/refunds, then no fees will be due.
Beaconplus’ services are completely performance related, which means that if they don’t make their clients a saving, then there are no fees involved. Assuming Beaconplus do make a saving, then their share of this is only due after this has been realised. Beaconplus have a proven track record of working with clinical practices and currently work with over 2,500 in the UK. Due to their large client base, they have access to prices/arrangements that their clients wouldn’t otherwise have access to. ABDO members are eligible for discounted rates.
Beaconplus base their saving figures on actual usage/consumption, so they can calculate savings exactly to the penny. If your usage was to drop for any reason, this would be reflected in their saving figures. Beaconplus’ benchmark is effectively the price you would pay without their involvement. Beaconplus receive copy invoices/call data from suppliers (as well as their clients receiving this also), which allows them to check invoices have been charged correctly and their savings are 100% accurate.
In the majority of cases, Beaconplus provide their services on a performance basis. This means that they share refunds and savings for a predefined period, which arise as a result of recommendations that they have implemented. Under this arrangement, if a company does not realise proven refunds or savings, they pay nothing to Beaconplus.
Beaconplus agree the benchmarks with you upfront. In most cases, without Beaconplus’ involvement, their clients would have been offered a fixed price contract for a specific period of time. Therefore, the benchmark for that fixed period of time is clear, and not impacted by changes in the market prices. In more complex cases, Beaconplus would agree an approach with you, so that you are satisfied that the savings have arisen from their recommendations.
Beaconplus calculate savings as the difference between the amount that you would have paid had their recommendation not been implemented. When Beaconplus present an invoice for their share of the savings, it is accompanied by an explanatory report, and there is a clear audit trail from their invoice to the individual utilities & telecommunications invoices that you have received.