When They Save Money, He Makes It

As the direct sales manager working at the company Utz Quality Foods, Dave Colgan makes a lot of decisions for the Hanover, Pennsylvania-based snack food manufacturing company. He sits behind his desk with his arms crossed, peering over at a man who furtively promises to revamp the shipping arrangement of the company. The man that Dave Colgan was listening to reveals that at no extra cost, he would be able to improve the service so that the company can also save money. Colgan admittedly thinks that it was a bit too good at first. It turns out that he had decided to go with the meeting because his friend insisted him to – and in about thirty minutes Colgan had begun believing into this man.

As the delicious fragrance of potatoes dipped in chocolate wafted through the historical plant, the direct sales manager became busy with a new deal that is all about renegotiating the shipping contracts of the 1930s company. The savings, as it turned out, would be at around thirty percent – which is roughly two hundred and forty four thousand dollars each year. And Mr. Palarea, the man who was in the meeting with Cogan, will get is payment from a portion of that thirty percent savings.

A Novel – and Useful – Idea

The company run by Mr. Palerea is a new one in the world of business. It goes through the shipping records of companies and looks at the different avenues that could reap some savings. Palerea says that he can save his clients up to forty two percent in savings without compromising the quality of service – which is something to look forward to. Palerea and his wife founded the business back in 1993, where it was able to produce around two point five million dollars’ worth of revenues. But what started out as a hobby soon became a full time endeavor – as they were faced with bigger challenges in this new industry of shipping.

The Recession

The economic crisis has seen the meltdown of some companies who are now turning to new and untraditional methods of savings. Because of this, Palarea shares that he was able to get at least ten new contracts signed just in the first month of the year 2009 – which in the past was the normal amount of work for the entire year. He faces a new set of difficult decisions as a result, especially when it comes to figuring out how to expand his business. While he does not want to refuse a customer, he also does not want to add more staff and become a manager himself. What he wants to do is to spread his business and make it nationwide so he will be able to find savings in other areas such as phone contracts without building a massive organization.