In an exclusive interview with CanadianSME Small Business Magazine, Erika Giuggio, a cost reduction expert, reveals how she helps small businesses uncover hidden expenses, renegotiate vendor contracts, and boost profitability. With her no-fluff approach, Erika offers valuable insights on building smarter, more efficient operations that drive long-term success.
Interview By Maheen Bari
Erika Giuggio isn’t just a business consultant — she’s a bold problem-solver with a knack for spotting inefficiencies and turning them into profitable wins. Her entrepreneurial story started early. At just 21, Erikafiled her firstpatent in the cosmetic industry. What looked like a move into beauty was actually her first real dive into business — a crash course in innovation, ownership, and what it really takes to bring an idea to life.
But Erika quickly learned that having a great product isn’t enough. To succeed, she needed to understand how business truly worked — beyond the surface-level excitement of branding and product development. That realization led her to Humber College,where she studiedmarketing and honed her skills in strategy, communication, and customer connection.
You started your entrepreneurial journey at 21 by filing a patent in the cosmetic industry. How did that early experience in innovation and ownership shape your approach to business problem-solving today?
Starting my entrepreneurial journey at 21 by filing a patent in the cosmetic industry taught me much more than just how to solve problems—it taught me resilience and how to shift my mindset entirely. With a background in commerce and a focus on marketing and finance, I thought I had the tools I needed. I quickly learned I didn’t. There were so many unfamiliar parts—legal, operations, product development—and I had to catch up fast. I took online courses just to understand the basic terminology so I wouldn’t get taken advantage of. But when it came to problem-solving, I realized the most important question was: What’s the opportunity cost? Should I do it myself, or bring in someone with deeper expertise? That shifted my mindset from being a doer to thinking like a project manager. I learned to step back, prioritize, delegate, and lead with clarity—skills I now bring into every business challenge I face.
Many business owners focus on growth and marketing but overlook hidden inefficiencies. What are the most common “leaks” you find when auditing expenses for small and mid-sized businesses, and why do they often go unnoticed?
Many business owners focus on growth and marketing but overlook hidden inefficiencies that quietly drain profits. When I audit expenses—especially in merchant services, telecom, and shipping—I often uncover thousands in unnecessary costs.
In merchant services, businesses are frequently overcharged with processing rates of 3.5% or more, when they could be paying closer to 2.0–2.5% with interchange-plus pricing. Add in junk fees like PCI non-compliance, statement, and batch fees, and the losses add up fast. Tiered pricing and transaction downgrades further inflate costs due to simple errors or unclear billing structures.
Telecom is another common leak. Businesses often pay for unused lines, outdated plans, or bundled services they don’t need. Carriers rarely notify clients about better options unless asked.
In shipping, I often find missed refunds for late deliveries, inflated dimensional weight charges, and underutilized volume discounts—especially when businesses don’t audit their invoices regularly.
These inefficiencies often go unnoticed because billing statements are confusing by design. But once identified, they’re fixable. On average, we save clients $26,000 per year—without switching vendors or compromising service. It’s not just about cutting costs; it’s about protecting profit and making smarter business decisions with the money you’re already spending.
You emphasize that significant cost savings are possible without switching vendors or disrupting operations. Can you walk us through your process for vendor negotiation and share a real-world example where this strategy made a measurable impact?
At Schooley Mitchell, I emphasize that you don’t have to switch vendors to save money—especially if you have a strong, trusted relationship. I never want to disrupt that. Instead, we look at every single line item with a magnifying glass. We ask: Why is this charge here? Do you need it? Can it be reduced or eliminated? With a team of analysts behind me, we break down complex billing to uncover hidden inefficiencies that often go unnoticed.
Once we understand the full picture, we use our market data and industry benchmarks to negotiate directly with your current vendors—on your behalf. Because we know what competitive pricing should look like, we can secure better rates while maintaining your existing relationships and service levels.
One real-world example: We partnered with a multi-location business that had a strong, long-standing relationship with their provider for waste management, uniforms, and linens. They had no intention of switching vendors. However, after conducting a thorough analysis—and comparing pricing and service quality against our extensive stack of vetted vendors—we identified opportunities to eliminate unnecessary fees, renegotiate service rates, and optimize their plan. The result: over $90,000 in annual savings, including $15,000 specifically in uniform and linen costs. Same vendor, same account representative—just significantly improved pricing.
Sustained profitability requires more than a one-time fix. What systems or ongoing practices do you recommend to ensure businesses don’t slip back into old habits and that savings are protected long-term?
At Schooley Mitchell, we don’t believe in one-time fixes—we’re here for the long game. Sustained profitability requires ongoing attention, just like managing personal wealth. I often tell clients to think of us like expense-side wealth advisors. We’re available quarterly, annually, or even monthly, depending on your needs, to make sure savings are protected and new inefficiencies don’t creep in.
Markets shift, pricing changes, and business needs evolve. Just like 2008 was rough and 2012 brought recovery, your cost structure should adjust with the times—not stay locked in a contract that no longer makes sense. What many people don’t realize is that contracts can often be renegotiated or optimized, even mid-term. There are almost always ways around them with the right strategy and data.
We build systems that monitor your vendor invoices over time, so if pricing starts to climb or new fees appear, we catch it—and act. Our analysts stay on top of industry benchmarks and trends, giving us the leverage to renegotiate when needed.
Savings isn’t a one-and-done win—it’s a discipline. And we’re here to make sure your business stays efficient, no matter what the economy throws at you.
As Head of Sponsorships for Italia 360 and a frequent podcast guest, you mentor the next generation of entrepreneurs. What final advice would you offer to small business owners who want to build resilient, efficient companies from day one?
My biggest advice? Just go and do it. This isn’t your diet—you don’t start Monday. Start today. Building a resilient, efficient company means embracing failure, making fast decisions, and moving forward even when it’s uncomfortable.
You will fail. That’s part of it. But every failure is a step toward figuring it out. The key is getting back up quickly and learning as you go. Fear is your worst enemy, not failure. Don’t wait for the perfect plan or for others to validate your idea. Honestly, friends and family might not understand your vision—and that’s okay. You have to believe in yourself more than anyone else does.
As Head of Sponsorships at Italia 360 and through podcasting, I meet so many aspiring entrepreneurs stuck in analysis paralysis. The most successful ones? They start, they adapt, and they keep showing up.
Efficiency and resilience aren’t built overnight—but they are built by taking consistent, courageous action. So trust your gut, stay scrappy, and don’t let fear sit in the driver’s seat.
Disclaimer:
The views and opinions expressed in this interview are those of the guest and do not necessarily reflect the official policy or position of CanadianSME Small Business Magazine. This content is provided for informational purposes only and should not be considered business advice.
