It’s basic human nature: people are typically driven to do what rewards them the most.  This could mean giving back to the community or contributing to the betterment of the human race.

For a business to achieve its goals, incenting employees and vendors correctly is critical.  Employees’ and vendors’ goals of success must be in alignment with that of your business’s objectives.  If aligned correctly, your employees and vendors will do what is best for themselves, and in doing so, your company will thrive.

The question is then, how to best align the goals of your vendors with that of your profitability goals? When engaging a consulting firm to help improve your company’s profitability, it is vital to understand what their own business drivers are.

There are many ways for consulting companies to bill their clients:


Fee Type
Profitability Drivers and
Key Incentives
Alignment With Your
Company’s Profit Goals
Predictability Guaranteed 
ROI and Increase 
In
 Profit
    Risk       Service Is A
Profit Center
Fixed Fee Minimize Internal Effort Limited High No Yes No
 Hourly Maximize Billable Hours Limited Medium No Yes No
Success Fee  Client Profitability 100% Low Yes No Yes

Although it can be difficult to forecast what you may pay a company with a success fee model, the trade off is better results. Paying your consultants success fees are the only way to truly align your company’s business objectives with those of your vendors.  Since the time, investment and effort risk is primarily in the hands of the consultant, not many will charge in this manner.  Even fewer companies will only charge clients after the benefit has been realized by their clients.  Many charge based on an estimate of savings upfront.

Optelcon is one of the few consulting companies that charges a success fee after the benefit has been received.  Optelcon takes the risks because we are confident in our ability to deliver added profits.  Your company’s real benifits are:

  • A vendor that is a profit center
  • cashflow positive fee structure (fees are charged only after clients receive benefit)
  • Converts other vendors’ spend directly into increased profits
  • For $3 dollars added to profits only $1 is charged
  • Requires minimal internal effort
  • Increases Productivity
  • Improves Vendor Relationships
  • Requires no systems to implement

If working with a company that provides these benefits is something that interests you, please contact us today for a complimentary review of your IT spend.

 

 

 

 

 

 

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One Comment

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