Unlocking Hidden Profits in the Wood River Valley
Unlocking Hidden Profits in the Wood River Valley
In the Wood River Valley, it’s not uncommon to hear business owners talk about the squeeze they’re feeling. Freight & utility costs are higher than expected, telecom bills seem to grow without explanation, and everyday services keep creeping up in price. Even as companies work hard to grow revenue, inflation and rising operating costs often eat away at margins.
What many don’t realize is that a significant share of these pressures comes from hidden inefficiencies in indirect expenses — categories like shipping, merchant processing, and waste services. These costs rarely get the same scrutiny as payroll or raw materials, yet they can quietly drain thousands of dollars from the bottom line each year.
The Overlooked Opportunity
When leaders think about cost reduction, their attention usually goes to big-ticket items: payroll, raw materials, or customer pricing. But indirect expenses typically account for 15–25% of a company’s spend. These areas are riddled with billing errors, inflated rate structures, and misaligned service levels.
In other words, the very services businesses depend on to run day-to-day are often overpriced without anyone noticing.
What the Data Shows in Blaine County
Research highlights just how widespread the problem is:
- Rising construction costs pushing up overhead.
- Inflationary pressures on supplies and services.
- Flat sales growth, despite regional demand.
- Low unemployment, making talent harder — and more expensive — to secure.
Together, these factors squeeze margins thinner and make cost efficiency more critical than ever.
Three Levers for Unlocking Savings
At Schooley Mitchell, we focus on three proven levers to uncover hidden profit:
- Vendor Error Recovery – catching and correcting billing mistakes that favor the vendor.
- Rate Optimization – benchmarking contracts against real-world market rates.
- Usage Alignment – ensuring companies pay only for the services they actually need.
Across thousands of projects, applying these levers consistently delivers 10–40% savings in indirect expense categories — savings that most companies never realized were possible.
Fuel for Growth
This isn’t about “cutting to the bone.” It’s about uncovering dollars that are already leaving your business unnecessarily and redirecting them into strategic priorities — new equipment, technology upgrades, additional staff, or community investment.
In a region like the Wood River Valley, where local businesses play such a vital role in the economy, unlocking these hidden savings can be the difference between standing still and moving forward.
John Rumasuglia works with Schooley Mitchell to help Idaho businesses improve margins and free up resources for growth. From Hailey, he supports manufacturers, nonprofits, and service providers across the Wood River Valley. More information is available at www.schooleymitchell.com/jrumasuglia
