Xero’s app marketplace has over 800 apps to help small businesses and their advisors succeed. Each month we celebrate an app partner who stands out for helping small businesses thrive. Find out more about becoming a Xero app partner here.
2021 has kicked off, and our first app partner of the month for the year is Reducer – a free and easy to use cost comparison app for UK businesses. Co-founder and CEO Joe Gallard gave us a breakdown of how Reducer helps small businesses save money, and what’s in store for the future.
So many products, so little time
Prior to starting Reducer, Joe qualified as an accountant through Deloitte before moving on to lead finance teams for high-growth startups Gousto, and then Carwow. Part of his role in these teams meant ensuring that the companies were getting the best deal from suppliers – an often intensive and detailed process.
“In order to get the best value for money, you need a good understanding of the 1,000+ different product lines an average small business buys from in a year,” Joe explains. “We didn’t have time [as a team] to do this, so we looked to find a product to help us. When we couldn’t find anything, I saw an opportunity and the idea for Reducer was born.”
Reducer helps users save both time and money by bypassing the traditional, often very manual price comparison process. Instead of spending countless hours comparing suppliers, Reducer plugs into a Xero account and quickly builds personalised cost savings reports.
The app works by searching through Xero data for spending in key savings areas like electricity, water and waste management. It scans invoices and invoice attachments, and then compares what a business is buying (and for how much) against hundreds of suppliers to find savings suited to each business.
“Once Reducer’s done this, our recommendations are set out in one of our cost saving reports, allowing business owners and their accountants to make the final decision,” says Joe.
Getting small businesses the best deals
Being one of the only products to provide this kind of service in the UK is something that Joe’s proud of. But it’s when Reducer is able to make a real impact for small businesses that he and the team get most excited. Nigel Tapper of Yorkshire-based Arcade Kitchens, started using Reducer a few years ago:
“I was introduced to Reducer by my accountant as a new way to make savings on my business’s bills. The service costs nothing and we only had to connect my Xero account, so there was nothing to lose. After a few days, I received an email with my savings report and was over the moon to see that I could save £2,200 on my electricity and water bills. After a quick chat through my options I asked Reducer to switch me over, and apart from signing something I didn’t have to do anything.”
Even though savings had already been found, Reducer was still able to find more for Arcade Kitchens years later.
“That was a couple of years ago. Since then, I’ve also changed my broadband and waste collector through them as they got in contact when my current agreements were set to end,” adds Nigel.
Putting their best foot forward
To help businesses understand the suggested savings, Reducer also provides access to resources including consultations with ‘savings analysts’, and business buying guides. These tools help provide small businesses with extra information so they can feel more confident in complicated markets.
Since entering the market in 2020, Joe and the Reducer team are proud to say that they’ve found over £1 million in savings for UK small businesses. But with the pandemic still making life difficult for many in the UK, and over £7.6billion being wasted by UK SMEs across the eight areas Reducer covers, Joe knows they can help small businesses even more.
“As COVID-19 continues and businesses are still in need of support, we want to continue to improve at what we do, including sourcing new suppliers, exploring new savings areas, and developing our app,” says Joe.
If you’re a UK-based business, you can see if you’re getting the best deal for your organisation by checking out Reducer on the Xero app marketplace.