Seed Today - Q2 2008 - (Page 44)

Case Study Lowering the Cost of Talking Utility audit yields savings for data communication line Noal Lawhon, president of Lawhon Farm Services, reduced monthly communication costs by thousands of dollars following a utility expense analysis by Auditec. Comparing prices and finding the best values are an ongoing effort for managers seeking to control expenses. Discounts for large orders, payment terms and shipping costs are readily apparent. What applies to pricing widgets, however, seldom applies to utility price comparisons. Providers of electricity, natural gas and communication services have a variety of service plans and rate structures. Comparisons between providers can be difficult. Customers more often than not simply accept whatever plan is presented to them. “That simple decision could result in thousands of dollars of unnecessary utility expense each year,” says Noal Lawhon, president of Lawhon Farm Services, McCroy, AR. “I thought we were doing an excellent job of watching our costs, but then at a meeting of small business owners, I was challenged to look more closely at our utility costs.” Total Utility Rate Analysis Lawhon Farm Services has utility expenses for electricity, natural gas, telephone service, cellular phones and a T-1 data line. In mid-2007, Lawhon decided it was time for an outside review of his monthly utility expenses. To begin the rate review, Lawhon gathered monthly statements for all his utilities and sent them to Auditec, (800242-3701/www.auditeconline.com) Birmingham, AL for analysis. “Auditec works with businesses to help them reduce their utility costs without any upfront fees,” says Lawhon. “We were shocked at what they found.” his company’s utility expenses. Auditec auditors looked for errors and overcharges. Finally, they looked for more favorable rate plans available to Lawhon and made suggestions for changes. “Auditec knows things that the utility companies will not tell you or me,” Lawhon says. “As a result of their analysis, we have reduced our annual utility expenses by over $55,000.” The majority of savings came from telephone and data line expenses with additional reductions on natural gas and electricity expenses. “Because most service providers have multiple services, rate plans and discounts, it is almost impossible to know for certain if your billing is correct,” says Auditec Owner John Close. “As a result of our rate audit, 90 percent of our clients enjoy refunds, cost reductions or both.” Auditec shares the savings for the first 24 months. After that, the savings all belong to the customer. “There comes a time when you need to hire the experts,” Lawhon concludes. “Having made that decision is saving us thousands of dollars each year.” Lawhon Farm Services McCroy, AR • 870-919-6901 noal@lawhonservices.com Key Personnel • Noal Lawhon, President Utility Expense Reduction According to Lawhon, Auditec performed a high-end statistical analysis of Company Features • Contract seed production. • Crop input products and services. 44 Second Quarter 2008 http://www.auditeconline.com

Table of Contents Feed for the Digital Edition of Seed Today - Q2 2008

Seed Today - Q2 2008 Contents Editor’s Notes Cover Feature IKR BÁBOLNAMAG AOSA/SCST Gary Biel Bill Latham According to ASTA AOSCA Origin AgriTech Ltd. Pipeline Auditec Power Seeds, Inc RSI Systems LLC Mill & Elevator Supply Co. Agronomix Software, Inc Green Age® Products and Services USDA Crop Projections Buyers’ Guide Ad Index

Seed Today - Q2 2008

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