How to Gain Leverage Over Your Telecom Services Provider

Your wireless costs might increase because of COVID-19 – but they won’t if you follow these 3 steps.

Outsmart Telecom ProviderWouldn’t it be great to have the upper hand when it comes to negotiating with your telecom services provider? The reality for many of us is that our telecom providers are in the drivers seat. They set prices and terms, and because you simply cannot run a business without telecom services, you play by their rules and pay each invoice as it rolls in. Despite what many people think, it IS possible to gain leverage when it comes to negotiating your telecom contract. 

Here are three negotiating strategies that your service provider does NOT want you to implement:

Establish Coterminous Expiration Dates

The first step in gaining leverage when it comes to telecom contract negotiation is to establish coterminous expiration dates. Providers prefer that you have several contract end dates that stagger, because then you are unable to move or cancel your services all at once without breaking a contract. When your contract end dates are not coterminous, then the providers know that you are less likely to change carriers, so they are more likely to up their rates. 

Lower Your Commitments

Telecom providers prefer for your commitment to equal the amount that you actually spend. For example, if your total expense is $1,000 per month, then they would like you to have a $1,000 per month contract. When this is the case, it is impossible for you to move any of your services over to a competitor, because you will still be charged the $1,000 that you committed to spend with your current provider. On the other hand, if you only committed to spend $500 but you typically spend $1,000, then your current provider knows that you are capable of moving $500 of your spending to a new provider. Lowering your commitment to about half of what you spend is a great goal that will help you gain leverage when it is time to renegotiate your contracts.

Establish an Annual Commitment

Your telecom provider would like you to have a monthly spending commitment rather than an annual commitment. Why is an annual commitment better for you? It may seem like committing to $1,000 per month for 12 months is the same as committing to $12,000 per year, but it is not. $1,000 per month commits you to the full 12 months, even if you end up spending more than $1,000 during certain months. With an annual commitment, if you spend more than $1,000 per month, you can satisfy your annual commitment in fewer months. This gives you the opportunity to renegotiate rates or change carriers sooner, giving you more leverage over your provider.

Implementing these three strategies will help you stay in the drivers seat and give you more leverage when it comes to telecom contract negotiation. Of course, the best way to gain leverage is to team up with an industry expert. If you would like more information about how PAG can work on your behalf to negotiate the best rates and terms for your telecom contracts, contact us today.


[author_bio username=”Ken” name=”yes”]

Stay up to date with ways you can save

More from PAG