Updated: In my humble opinion the Profit Recovery industry does not get enough credit (no pun) for the value they provide. Analysts do not cover the space and most media outlets and publications glance over the topic.
Before and since my original post I have made it a personal mission to reach out to different journals and periodicals in the AP space and challenge them to cover recovery audit providers. Many of us are newsmakers. I have been quite pleased with the feedback and the growing coverage. Sometimes it only requires a few friendly phone calls.
Admittedly the Profit Recovery industry may not be the most exciting, but it does offer a very direct value to clients. Assume a Profit Recovery firm finds $100,000 for your company. Consider what number of sales or what amount of effort would be required to generate that revenue. In most cases, Profit Recovery delivers dollars to an enterprise with one of the most favorible ROI’s possible.
A few weeks ago PRG rang the bell at Nasdaq and as they are our primary competitor the occasion did not go unnoticed. Rather than feel any envy, I was actually thrilled for them and for us as a result. Any major publicity that they earn is easily translatable into publicity for the Profit Recovery space. I still believe, based on overwhelming evidence from our audits, that recovery auditing is alive and well. I am glad when that message is reinforced.
In one of my recent briefings with a fairly major analysts I was told that PRG’s decision to migrate slightly away from recovery makes the conversation more interesting. A company like Lavante is investing in software to further tap into what we believe to be a rich recovery vein when other firms are moving slowly away.