An RFP is a great way to save on telecom expenses, but if you really want to save (and who doesn’t) you might not use the RFP in a typical fashion. Here are 3 ways a telecom RFP can help you save on telecom expenses.
Send Out An RFP To Competing Providers
(Even If You Don’t Plan To Jump Ship)
If your contract has ended (or you’re soon to be out of a contract), sending out a request for proposal (RFP) to competing telecom providers might shake things up with your current carrier – even if you have no intention of actually jumping ship.
You can take the proposals you receive from competing providers and let your account representative know that you’re aware of the money you would save by switching to another provider. Ask what your carrier can do to match, or at least get close to, the acquisition pricing you’ve been offered by the competition.
By taking action, you show your provider that you’re aware of the savings you could get by switching and that you’re willing to take the necessary steps to keep your expenses low. This will put the pressure on your account manager to do everything in their power to keep you satisfied, keep costs down, and keep you in contract.
Shop The Competition With An Open Mind
This tactic is nearly identical to the previous step, but with one exception. The main difference here is to actually keep an open mind while sending out your RFPs. Though few organizations favor the idea of dedicating the time and resources required to transition telecom services over to another carrier, it never hurts to explore your options. A little bit of extra work on the front end could result in long-term savings.
By exploring what the competition may be willing to offer you for your business, you’re not just playing into your current carrier’s fear of losing you, but you actually open yourself up to the possibility of securing a better contract.
Tell Your Rep That You Plan To Do An RFP When Your Contract Expires
In the world of telecom, it’s typical for a contract to last approximately 3 years. Normally, you have the option to renegotiate the terms of renewal within the final 90 days of the contract. However, there are some tricks to being able to renegotiate your contract earlier. This is one of them.
For the sake of this example, let’s say that you’re only 18 months into your contract, with another 18 to go. You can “plant a seed” with your representative by letting them know that the telecom numbers aren’t where they need to be and that you’ll have to do a full-blown RFP when the time comes.
Your representative doesn’t want you to do an RFP because it increases the possibility that you’ll actually move once the contract is fulfilled. When you plant this seed of doubt, he or she will be motivated to pre-negotiate upcoming pricing terms with you before you can contractually begin doing business with someone else.