Saving on Business Voice and Data
June 4, 2010
How much are you currently paying for your voice and data services?
What services are included on your current bill?
When I ask this question to most customers, they shrug and say, ” Look at the size of this bill, I don’t even know where to begin.”
This is the result of prvider intimidation. They really don’t want you to know what you are paying for. Most customers may say, ” We’re paying 3 cents a minute.” The real question may be, how much is that 3 cents a minute really costing you?
Finding the answer to this question has now been simplified. Hutchinson Business Solutions offers a free review of your current voice and data charges. All we need is a copy of your latest bill. Trying to reconcile these questions may prove to be a challenge that your business may not be able to undertake because it is not your core business. However, most business owner’s can save money with a little research into which business telecom services are best for their situation.
A competent and informed business voice and data consultantis vital to assist your business make the right decision every time. Whether you are an existing business, a franchise, or a new business you need to ensure that your telecommunication needs are not only met, but met at a cost effective rate. There are many business telecommunications sales representatives out there who will only try to sell you the plan that gives them the highest commission. A wrong decision will see your business locked into expensive contracts for mobile, fixed line and data services that do not meet your needs.
Many businesses purchase telecommunications on the phone from an unknown sales person and are pressured to sign by way of a recorded verbal contract. Not surprisingly when this decision is pressured the end result is often less than ideal, it could be expensive, and it could cripple your business. The quality of the service provided and the quality of the telecommunications management team is imperative to your success.
Whilst many business decisions need to be made quickly, your telecommunications need to be right, they need to be suitable for your business now and throughout the consequential contracted period. You need to find a telecommunications consultant you can trust and ask them the following questions to ensure that they have the best interests of your organization at heart and are capable of supporting your telecommunications needs.
1. Can the business telecommunications consultant provide you with an independent analysis of your current bills against the plan they recommend, and other comparable plans in the marketplace?
Many times the customer has been “sold” a service which has not been quantified in an analytical manner. We know that communication costs are an ever increasing cost to doing business and we respect that it is difficult for any organisation to employ or train a staff member to work though this minefield.
The key to having complete understanding of your telephone bills and your telephone spending patterns is in the professional telephone bill analysis
2. Can the business telecommunications consultant provide you with testimonials from companies that are of comparable size to your organisation?
Testimonials are vital. You need to be sure that the business telecommunications consultant you are dealing with is from a reputable company with many happy clients.
3. Can the business telecommunications consultant arrange for the seamless transfer of your services should you need to change carriers?
Once your business telecommunications consultant has identified the business telecommunication rates and services that are best for you and these are accepted by your business can they arrange for the transfer of your telecommunication services to the contract selected by yourselves? Professional business telecommunications consultants should ensure that you are not inconvenienced.
4. What kind of ongoing support does your business telecommunications consultant provide?
A good business telecommunications consultant will not only sign you up to a long term contract, but will keep you advised of better deals available in the market place, and proactively and constantly negotiate better deals for you, the customer.
Hutchinson Business Solutions have been providing solutions to these problems for over 10 years. Our clients are saving from 15% to 40% by shopping the market and providing solutions that promote efficiencies and savings.
To learn more email george@hbsadvantage.com or call 856-857-1230
Saving on Business Telecom
June 4, 2010
Every company is scouring the books for potential cost savings these days. How about your telecom expenses. Do you think there is any potential for savings there? I’ll bet there is.
First thing you need to do is collect those monthly bills and take a close look. For starters, just pick last month’s bill. What are all those line items that you are paying for? You need to know what each item is and why you have it.
In a larger organization, you can easily drown in the detail of every long distance phone call. I’d suggest just a quick scan to see if what sticks out like a sore thumb. Are a few users running up bills that are ten times everybody else’s? Do they have jobs where you’d expect that?
Especially be on the outlook for services that were ordered a long time ago but aren’t being used anymore. Do you have a special FAX line with no FAX machine attached? Are there a dozen phone lines coming into a building that has only a hand full of employees? How about dedicated point to point lines that link to locations you don’t even own or lease anymore? Cell phones that are sitting in drawers unused but still activated? All of these things are candidates to cancel immediately.
Highlight the rest of your telecom line services and how much you are paying for them. Generally data lines have a fixed cost per month. Telephone lines have both a fixed cost and a per minute cost. You want to know the bandwidth and cost of each data line and the per minute rate and number of minutes for each voice line. Why? So you can comparison shop, of course.
Oh, but isn’t that a painful and horribly time consuming process? Not anymore. Hutchinson Business Solutions is an independent voice and data management consultant. We represent all the major providers presenting cost saving solutions for you business. We offer a free analysis of your existing charges and will provide a solution that will premote efficiency and provide savings available thru an array of competitive voice and data line and networking services. There may be several options available for each of your needs.
All we will need is a copy of you latest provider invoice. To learn more email george@hbsadvantage.com
Beware of Verizon Calls for Savings
April 6, 2010
Verizon is up to their same old tricks …
We have been getting feedback from our clients that they have been receiving telephone calls recently from Verizon representatives asking to review their bill and promising savings.
First, they will ask for a copy of your bill so they can provide you with a comparison of your charges. Here is the old “bait and switch”, the comparison is incomplete. The base line charge ($15.00 per line) is listed but what they don’t show you are more important — all the fees and taxes associated with those charges. All carriers must charge these fees and taxes. What initially looks like a savings is nothing but deception. To do an apples to apples comparison ask them to give you all the fees and taxes, as they would appear on your bill.
Buyers beware …
They are also pushing an offer of unlimited calling. This is the hook. You need to drill down and look at each individual line and examine the calling patterns for each phone number you have and all past invoices. Most likely, some of these lines have minimal usage and you will end up paying more for this feature.
We have seen several examples of inaccurate phone line count. Verizon’s proposal only indicated 6 lines when in actuality the client had 10 lines. Obviously, the bottom line of the Verizon proposal was going to look much better to the client, until he receives his first bill.
More than you expect …
If you receive a call promising savings from Verizon, don’t be fooled! Please give us a call and let HBS review the proposal for you. Otherwise, you may end up paying much more for your basic services based on a false proposal.
Hutchinson Business Solutions is an independent voice and data solutions consultant. Thru our strategic partnership, we represent over 50 of the major providers currently providing these services for business. We provide a free review of your current services and will shop your account to our providers, presenting an overview of the current market opportunities available for your business.
To learn more about finding savings in the deregulated voice and data market, contact george@hbsadvantage.com or call 856-857-1230.
Find out more information by visiting our website www.hutchinsonbusinesssolutions.com
Three Ways to Save on Telecom
March 15, 2010
A telecom management system is first and foremost a money saver. If the telecom system cannot provide a clear reason for you to invest your time and money (but, you may not need to pay for the system, more on that later), then why would you pursue it as a strategy? The return on investment, both hard dollar costs and time and energy invested, needs to be clear before the investment is made.
So, where do telecom management systems generate their payback? Telecom systems certainly create efficiencies in terms of automating manual processes within the IT and finance organizations, but our focus is on the hard dollar savings telecom management systems are renown for delivering. These hard dollar savings are in the “indisputable” elements of the telecom program. The hard dollar savings create a solid business case that managers can take to their executives for concurrence to move forward. If the investment element of the telecom system is low or free, then the only expenses that need to be covered before generating a clear return to the company is the set-up effort.
Where do these returns come from? Hard dollar savings can only be generated buy lowering the telecom bills of the user. This lowering can occur one of 3 ways: 1) by reducing the rates that the existing carrier is bill, 2) by changing the services the user is paying for so service is maintain or even enhanced while costs go down, and 3) by introducing new carriers with superior value propositions. A comprehensive telecom management operation will accomplish these three things and more.
Reducing rates charged by an existing carrier can be challenging. After all, you are typically bound by a contract or tariff, reducing the flexibility that the carrier has in changing what is being charged. Getting rates changed is possible, but it requires work on your part and may also force a contract extension. If you are happy with your carrier, a contract extension may be tolerable. The telecom expense reductions seen in this scenario typically range less than 10%, Telecom carriers in a re-negotiation proceeding do not have a significant incentive to reduce rates, so some sort of loyalty discount is typically rolled out. The two remaining methods of reducing your telecom expenses, however, are preferred.
Changing carrier’s services is a very effective means of lowering current spending without interrupting or interfering with an existing telecommunications carrier contract. Evaluating the specific services at each of your locations, determining whether you can simply disconnect a service, consolidating service to more efficient facilities, or up-grading to a newer technology can yield savings of 10% to 20% if the network has not been optimized for quite some time.
The best savings are usually obtained by actually using new telecom service providers to replace existing services with much more competitively priced services. There are many quality service providers that supply similar quality to the larger carriers at rates in excess of 30% below what the larger telecom carriers charge. Strategies are available for every comfort level, so using an alternative carrier to lower your cost can be extremely beneficial.
Consider using a telecom management platform to tie these three strategies together. Platforms that detail telecom inventory, analyze billing trends, as well as provide flexible analytics are best suited to support cost containment and reduction initiatives.
Our perspective:
If left unchecked, voice and data cost can become a major business expense. As the industry continues to evole, the cost of voice and data have become more competitive while the increase efficiencies will take your business to a new level. For too long business has settled for the mediocresy of service provided by the major carriers. Significant savings can be found by shopping your account.
Hutchinson Business Solutions provides corporate financial solutions. We are an independent broker who represent over 50 of the major voice and data providers.
Each business is unique. We will work with you to find the right provider that will allow you to increase your efficiencies and address your needs.
To learn more contact george@hbsadvantage.com
Tame Your Telecom Spending
November 2, 2009
As Reported by National Business Association
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You should review your Telecom Cost
September 25, 2009
As reported in Midmarket CIO News
Tips for cutting costs on telecom spending |
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By Karen Guglielmo, Executive Editor 20 May 2009 | SearchCIO-Midmarket.com |
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Telecom spending accounts for more than half of all IT spending worldwide, according to Gartner Inc. That’s why it can be worth the time to scrutinize bills, identify areas for cost savings and shop around for new providers.
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So say consultants and CIOs with telecom experience, who offer the following tips for cutting telecom spending:
Assess your telecom inventory and audit your bills.
To effectively manage telecom spending, the first step is to find out exactly what you have and use, by analyzing your inventory and contracts. Take inventory on all lines and services; you may find that though your company has shut down offices or lost employees, you continue to be billed for those services.
“You always want to consider utilization,” said Michael McCauley, a Project Management Professional at TelPlus Communications Inc., a third-party telecom service provider. “You are paying for all these lines, but are you actually using them all?”
McCauley provides auditing and telecom expense management services to companies that want to outsource these tasks. He said that in working with customers and reviewing their telecom spending and bills, he finds that up to 30% of pricing reflected on bills is incorrect.
“Much of the time the discrepancy is something simple, like a contract pricing code not on the account,” McCauley said. Because of this, companies are often eligible for discounts and credits for overcharges.
At Mannatech Inc., a $333 million developer and provider of proprietary nutritional supplements, weight management products and skin-care solutions, CIO W. Jerome Oberlton conducts a quarterly audit on telecom billing and services in-house. “We actually do a match of our telecom inventory to our bills. It helps to manage costs,” he said.
Automate the telecom billing process.
Most companies use multiple carriers for their telecommunication services and thus receive multiple invoices. Automating telecom billing and payment can save companies money because most telecom carriers charge additional monthly fees for paper invoices. Automation can also lower the internal costs of processing each invoice and free up staffing resources in IT and accounting.
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Automated billing still gives you the opportunity to review your charges, through either a Web portal where you can access inventory and pricing information or through monthly management reports that break down charges by service/circuit type, location, carrier, etc.
Midmarket companies can either set up their own automated telecom billing process and system, or they can partner with a service provider for it.
Consider hiring a third party to manage your spending and contracts.
Third-party telecom providers like TelPlus Communications can help assess spending, automate billing and negotiate contracts on behalf of the customer. These service providers are especially helpful in contract negotiations because they’re already familiar with the telecom carriers, their offerings and where they’re most flexible for cutting costs.
Telecom service providers give companies a “one throat to choke” option for billing, according to McCauley. “Whether you’re working with 20 or 100 telecom companies, you just have one call to make,” he said. “All of your inventory is in one place, and there’s one project manager to call. That alone is a huge time and money saver.”
Renegotiate contracts.
In this economy, it’s a buyer’s market. Customers can demand the services they want or move to another vendor. So this is the right time to closely review your telecom contracts and renegotiate if needed.
Telecom carriers want all of your business, not just a piece of it, according to McCauley. And the benefits they offer for getting all of your business are higher discounts.
For instance if you have 50% of your business with AT&T and 50% with Verizon, you can include a clause in a renegotiated contract with AT&T saying that if you give the company 90% of your business, you receive a certain rate and higher discounts. This is a win-win for both you and AT&T. The telecom carrier gets your committed business and you get better service and rates.
“We’ve even seen some cases where small-to-medium businesses cancel contracts with the Bells and absorb the cancellation penalties because the savings they get with us more than offsets the switching costs,” said David Williams, vice president of product management and marketing at Covad Communications Group Inc., a national provider of integrated voice and data communications.
Another consideration in renegotiating your contracts is the addition of a “business downturn” clause. This allows the customer to renegotiate the terms of the contract if there is a downturn in its business — such as losing a major client or closing multiple offices.
Don’t overpay for wireless — shop around and consider new converged network technologies.
Wireless is a huge area of misuse and a big area for savings.
“Wireless can be a huge money pit,” McCauley said. “Customers are often put on incorrect plans and are overpaying for services.”
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There are many ways to save with telecom wireless and data services. One is to move to other types of data networks or new technologies, such as Multiprotocol Label Switching, which can typically carry data and voice traffic at lower costs, or Session Initiation Protocol, which customers can employ to consolidate local voice, long distance and data services onto one network.
Oberlton recently renegotiated his mobile contracts. He switched vendors to gain cost savings.
“By moving from one vendor to another, we got rid of some servers on-site,” he said. “This helped get costs down and receive more volume discounts.”
Oberlton did caution others, however, to beware of penalty clauses for switching vendors, which some telecom wireless carriers are including in contracts. These clauses come with steep fees and should be addressed early in the contract negotiation process, he said.
Our Perspective:
When was the last time you took the time to review your current telecom cost and provider? We find that many companies fail to look at these cost. They know what their monthly cost are and they budget that cost for the future.
Don’t get caught up in this fallacy. There are great opportunity for savings by shopping your current cost. Our clients are finding from 15% upto 40% savings. What would this mean for your company?
Would you like to know more? Call us @ 856-857-1230 or email us and ask about our free evaluation george@hbsadvantage.com