Pisa Orologeria has been a point of reference for all enthusiasts of the tools of time for over 60 years, and a partner to the most prestigious brands and historical companies of the fashion district in Milan, Italy. The combination between innovation and tradition has always characterised the founders’ work and that of the heirs who inherited a store opened in Milan in the 40s, bringing Pisa at the forefront of the sector, to become the point of reference in the clock-making industry in Italy and for exclusive clients across the world. Pisa is the official and historical distributor of some of the most prestigious and luxurious watches worldwide such as Rolex and Patek Philippe and has always been a very successful company. It is currently managed by Mrs Chiara Fiorentino who represents the new generation of ownership. The secret of such success lies in the way the business is done, based on 4 key fundamental principles: taste, expertise, dynamism and innovation.
In addition to retail sales carried out in the three stores located in the Milan fashion district, the company also has a department dedicated to corporate sales. In fact, many companies choose Pisa for their corporate gifts, certain of a professional and dynamic service. The collaboration with Expense Reduction Analysts started early last year when the family was joined by an external manager, Mr Paolo Sassetti, who, as Director, had the objective of supporting the development of business in the medium term by bringing new ideas and experiences. Mr Sassetti, with the full support of Mrs Chiara Fiorentino, started a process of verification of the costs of services, not only to acknowledge the company’s initial situation but also to verify the alignment to the market; this is why they decided to draw on Expense Reduction Analysts’ expertise. "The presentation of the Situation Report was much appreciated, they have done a great job of analysis that would have required from us skills and resources we do not have," says Mrs Chiara Fiorentino.
Initially the total expenditure analysed amounted to over 1 Million Euro and the costs of the charges on the credit cards represented more than 50% of the total. After in-depth analysis, the Expense Reduction Analysts experts showed the greatest opportunities for savings in the areas relating to the fixed and mobile telephony, electricity in offices and stores, doorman and security services, transport, cleaning and, finally, the charges on credit cards, where the analysts worked on the percentage subtracted from the points of sale to international circuits such as VISA, Unionpay and AMEX, and other services linked to payments (for instance Dynamic Currency Conversion - payments in the currency of the client) and on the recovery of charges for clients.
At the beginning the project appeared to be very interesting but also complex to the Expense Reduction Analysts multi-disciplinary team. Pisa, in fact, is a clock-making company which operates in one of the most exclusive areas of the world, for which the peculiarities of the business and the importance of customer service and safety, required to proceed with the utmost caution in the choice of suppliers. A further complication came from the fact that in certain sectors suppliers work effectively under monopoly conditions. In particular for services in the field of security, the analysts had to take into account the very specific needs of Pisa, with well-proven procedures, extremely reliable employees and services of a very high quality guaranteed. Although negotiating specific services under a quasi-monopoly condition was not that easy, the Expense Reduction Analysts experts were able to achieve concrete results: "In fact, we were amazed by the results obtained on certain cost categories, we never imagined that we could achieve savings of 30-40% on services considered to be very competitive" says Mrs Fiorentino.
From the beginning, the objective was to maintain most current suppliers and to obtain important results both on prices and service levels. To do this, analysts carefully reviewed the contract specifications and assessed any potential amendments. Finally, wherever possible, the few companies on the market competed with each other, and, though the negotiation process was articulated and complex, the analysts were able to achieve excellent results. The project was completed successfully and led to substantial savings of over 15% and, for certain services, of around 40-50%. In particular, in the context of credit cards, the analysts were able to provide the client with valuable information on not only the price benchmark but also on industrial best practice in terms of customer services. "The report on analysis and recommendations on charges of credit cards have impressed all of us greatly; important savings on a cost category obviously relevant to Pisa, but above all an analysis of best practice and of the behaviour of competitors as well as valuable suggestions to improve our customer service and the profitability of the company" concludes with satisfaction Mrs Chiara Fiorentino.
“We knew Expense Reduction Analysts from previous experience of some years ago. We appreciated their business model based on concrete results achieved in the field.”
Mr. Paolo Sassetti – Councilor at Pisa Orologeria