Frequently Asked Questions
1. What professional experience is needed to become an Alliance Cost Containment Principal?
ACC is an ideal entrepreneurial opportunity for someone with a professional background in expense reduction, accounting, consulting, business coaching, factoring, cpa, executive sales, or financial services.
2. What are the critical keys to success in this business?
First and foremost, honesty and high integrity are the most important qualities of our Principals. In addition, it is essential that you have the self discipline, motivation, and intellect necessary to grow a successful professional services business. Our Principals should have excellent communication and presentation skills, an ability to analyze and discuss issues at the senior management level (President, COO, CFO, VP), and a basic working knowledge of spreadsheets.
3. Is it possible to speak with other Principals before signing an agreement?
Yes. However, we strongly encourage a due diligence visit and a review of our FDD to be conducted in conjunction with this. Also, we want to respect our Principals’ time, so we try to spread the calls around the best we can.
4. How many Principals that have started in this business have failed?
All of our Principals are at different stages of development. There have been a small number of Principals who have either terminated or are less active than other full-time Principals.
5. How many Principals are using the ACC Process as a supplement to another business?
Nearly all of our Principals are developing their Alliance Cost Containment business on a full-time basis. A small number of Principals are involved in other business ventures, and some transition gradually from their previous careers to ACC. We are flexible in this regard.
6. How is the Principal paid?
Each client pays the Principal a percentage of the cost savings identified, facilitated and implemented over 12-18 months. There is also a recurring revenue stream from suppliers.
7. What is the typical customer profile?
We target small to mid-sized for-profit and not-for-profit organizations (with annual revenues typically between $5 million to $500 million) across nearly all industries and sectors.
8. What expense categories do you manage for your clients?
We review as many as 50 distinct expense categories for each client. These are primarily “indirect” or non-strategic expenses that every organization incurs. These include office products, printing, freight, express delivery, payroll service, industrial supplies, capital equipment, credit card fees and many more. These indirect expenses can amount to as much as 10% of a company’s revenue.
9. What additional costs should a Principal anticipate beyond the initial investment?
The Principal must secure a notebook computer and peripheral office equipment (fax machine, personal copier, scanner, Smartphone, etc.) for their business, and should plan for working capital of a few months living expenses.
10. Can Principals work out of their home(s)? Yes.
11. Do you assist the Principals in generating leads?
Yes, we have a dedicated lead generation service that is available. There is a fee for this service.
12. How do we address the exclusivity of a territory?
We grant no exclusive territories, but define “Marketing Areas”, in which we limit the number of Principals within a given Marketing Area. Principals may travel, market, and deliver engagements to clients anywhere (within or outside any Marketing Area), since referrals and prior client relationships potentially take a Principal across Marketing Areas. Multiple units may also be purchased in a given State or in multiple States
13. Are suppliers in the Alliance regional or national in scope?
Some supplier relationships and contracts are local, some are regional, and some are national. Depending on the expense category, some expenses are more prone to using local sourcing. We train the Principal on how to qualify, research, and negotiate with suppliers, as well as how to facilitate the negotiation process as it pertains to our methodology with national agreements. We are negotiating national supplier contracts on an on-going basis.
14. What expertise do you offer the Principals?
We have dedicated subject matter experts available to assist you with the more complex expense areas such as utilities, freight and printing. These SMEs are uniquely qualified to discover and implement savings in their areas of interest, and they provide valuable support on client engagements.
15. Who are your largest competitors?
From the research we have conducted over the past few years, we have found very few organizations that offer the same broad suite of cost containment services. Some organizations, which specialize in one expense area, or specialized buying groups, are not considered serious competitors, and the fee revenue model is not the same or as compelling as ours. The relationships we have with our clients are very strong, and our relatively high individual client fees reflect the significant value we bring to them.
16. Is there an avenue for new services to be made available to the Principals?
New areas, branding, national supplier contracts and improvements are on-going, particularly as we are executing our new branding strategy nationally. On-going interaction with our Principals is encouraged, and our annual conference agenda keep us focused on new needed services and initiatives.
17. Can the methodology be used to address other business areas besides the core expense items noted?
Yes. The methodology forms the core structure for conducting the analysis, regardless of which or how many expense areas may be reviewed.
18. Are there currently any lawsuits or arbitration pending against Alliance Cost Containment? No.
19. Is there an advisory council that provides a channel for communications between Alliance Cost Containment and its Principals?
Yes. There is a six member Advisory Committee that provides valuable input into the overall strategic growth of the business. There are sub-committees that focus on action oriented issues and priorities. 22.
20. Can I get more information before I make a final decision?
Yes. We invite all prospective Principals to talk personally with us, and to make a due diligence visit to our main office in Louisvile, Kentucky to see and study our business first hand.