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DistributionConsolidation

~$124,400/yr

Pump and equipment distributor

Distribution · Florida

Five Florida sites, six years of reviews. Merchant processing was nearly 40% above market. Phase I plus a later waste and property-tax pass produced about $124,400 a year, and $446,000 in five-year value after fees.

Footprint
Five locations
Contacts
Ownership and operations
Relationship
2019 to 2025, multiple phases

01

The problem

Locations added over time, and vendor sprawl came with them. A different waste hauler at each site, a merchant rate that had not been benchmarked in years, and cellphone and fuel contracts that had drifted well above market.

02

What we looked at

  • Fuel
  • Cellphones
  • Energy
  • Freight
  • Small parcel
  • Merchant processing
  • Payroll processing
  • Waste removal, site by site
  • Property tax assessments on two parcels

03

What changed

  • Phase I ran the indirect-expense review across fuel, cellphones, energy, freight, small parcel, merchant processing, and payroll.
  • Merchant processing was nearly 40% above market and was repriced with a competing processor.
  • Cellphones moved to a competing national carrier. Fuel was rebid. Freight consolidated onto one broker.
  • Phase II went site by site on waste... five locations, five separate contracts... and contested property tax assessments on two parcels.
  • Later passes on telecom, internet, and merchant processing found new savings as contracts renewed.

04

The numbers

Merchant processing
49% savings

Repriced with a competing processor

Cellphones
51% savings

Moved to a competing national carrier

Fuel (gas)
48–56% savings

Rebid to a competing supplier

Freight
30–40% savings

Consolidated onto one broker

Small parcel
5–22% savings

Renegotiated the carrier mix

Waste removal (one site)
54% savings

Renegotiated the incumbent contract

Payroll processing
20% savings

Moved to a lower-cost platform

Property taxes
17% savings

Contested assessments on two parcels

Phase I first-year savings
$114,600
Phase II additional recurring
$9,800/yr
Merchant processing alone
$77,000/yr
5-year value after fees
$446,000

05

Why it worked

  1. 01

    Merchant processing was the largest category

    A 40% rate gap on a distributor's transaction volume translated into tens of thousands a year, found by comparing effective rates.

  2. 02

    Vendor sprawl was the pattern

    Waste removal alone had five separate vendor relationships across five sites, none of them negotiated together.

  3. 03

    The relationship never really ended

    Later passes on telecom, internet, and merchant processing each found new savings as contracts renewed.

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