When is the last time that you truly analyzed your telecom bills? Chances are that you just continue to pay telecom bills as they come in without giving any real thought as to the reason the bills are so high. As a business owner, you can expend a lot of capital on expenses that are simply not needed. Taking the necessary steps to understand your telecom bills and the services you actually subscribe could get you to a point where you can start to cut your costs.
Understanding the Telecom Services You Truly Need
The first reason your telecom bills may be too high is that you simply do not understand what services you actually need. There are all types of telecom service providers, from those that can service a national organization to those in more niche markets for companies that have specific needs. You need a firm grasp of your business and the technology that is required from a telecom perspective. Only from this point will you be able to better gauge whether or not the services you are paying for on your telecom bills are truly appropriate.
Paying for Telecom Services You Don’t Know You Have
Another factor in paying too much for telecom services is that you pay for services you simply don’t know you have and do not need. It is important to inventory all of the current telecom services that you subscribe to. A great way to do this is to audit one of your telecom bills to get an idea as to exactly what your service entails. Go over your service agreement to see if your provider is holding up their end of the contract. With this information, you can compare it to the services you have found you need to start to cut out the added expenditures that are simply not warranted.
Telecom Promotions
Some telecom service providers will not enroll you in a contract when you sign on with them. You should check into whether or not you are actively in a standing contract. This is going to allow you to see if you are eligible for any promotions. Some telecom vendors will save the best promotions for those willing to sign on to a contract for a period of time. Utilizing these promotions will allow you to get locked in with a discounted rate for a period of time.
Multiple Telecom Vendors
Having multiple vendors can also help drive added costs associated with telecom services. You as a business owner should strive to consolidate your telecom services to one vendor. This is going to allow you to avoid paying for overlapping services and not taking advantage of bundle promotions that certain telecom providers will help you.
Shop Around For Telecom Services
The last reason companies may pay too much for telecom services is that they do not shop around. Whenever a contract is up with your telecom provider, it may be wise to put together a request for proposal to get an idea as to what other providers may be able to offer you. If you do not shop around, you are likely going to end up with a telecom provider that may take advantage of you with higher prices, as they could penalize you for your loyalty.
Sound telecom expense management (TEM) is pivotal in reducing overhead. One of the best ways to do this is with the use of an RFP (Request for Proposal.) Drafting an RFP is a true art form that when used properly, can help you reach TEM solutions to reduce overhead and increase service effectiveness.
Let’s take a closer look at the benefits of an RFP and how to properly prepare one
The Benefits of Using a Telecom RFP
The biggest thing to understand when choosing a vendor for telecom services is that you are in control. You as the business owner have the ability to select the vendor that is going to provide you the services you want, at an appropriate price. Utilizing an RFP puts you in complete control of detailing out to vendors what you are looking for. Rather than you having to call up telecom vendors, you can dictate what you want and let them come to you.
It is all about power with vendors. If there was only one telecom provider in the world, the lack of supply would allow them to dictate prices and services to you. Thankfully for telecom there are several different providers. This increases supply of the services, giving consumers the ability to choose. The more options that exist, the more power a business owner has. All telecom providers will be competing for your business. Detailing out exactly what you want in an RFP lets you sit back and see which one can match or exceed what you are looking for. Let the vendors come to you.
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Writing Your Telecom Vendor RFP
Composing the RFP starts the road towards TEM solutions and obtaining the services and price point you are looking for. The first thing to be sure of is that the RFP is brutally honest and has adequate detail. You want to be as detailed as possible throughout the RFP, leaving very little to interpretation on the part of the vendors. Think of the RFP as the first layer of blocks for a building. If the blocks are not placed properly or are cracked, the building is going to be unstable forever.
Take Your Time When Drafting the RFP
This is going to help ensure that the details are covered. Start by drafting the RFP with the overall goal of what you are looking for. In most cases it is going to be better telecom services at cheaper prices. Examine your current services, and create a roadmap for where you need to get to in a few years. Some vendors may be able to meet your needs now, but may not be able to grow with you in a few years. Fill in the details once this is complete, including things such as the various telecom services you need, how much you want to spend, and so on.
Finally, lay out a timeline for vendors to ask questions and submit their bids for the RFP. This is going to allow you to control how long the process takes. An open RFP could go on forever and bring minimal results.
The RFP process is not an easy one, but it’s of the TEM solutions that gives a business owner control of their telecom vendors and expenses. Using the RFP to lay out, in detail, what you need for telecom services and what you can spend, can help decrease overhead and improve service effectiveness.
Whether you are a Fortune 1000 company or medium-sized business, one of the biggest (and most complicated) line items on your corporate budget is your telecommunication service. With today’s fast-changing technology, and a shift to an all digital, cloud-based world has made understanding your telecom invoicing more complicated than ever.
In addition to the RFP investing in solid telecommunications expense management is one of the smartest moves you can do to ensure your company is running optimally, with less wasted resources and costs.
Three of the top benefits of using telecommunications expense management include:
- Eliminating confusion and waste: streamline your expenses to reduce costs
- Put budget where it matters: Prevent cost reductions in vital areas
- Better value: Get improved service and a better bottom line
Let’s look at these benefits of telecommunications expense management a little closer
Eliminate Telecom Confusion & Wasted Expense
Wasted expense is never good business, it doesn’t matter what size your budget. With good telecommunications expense management you can get a better understanding of your invoices, which will allow you to discover overcharges, errors and unneeded expenses. You could get a telecom audit that outlines your current invoices and services to show you exactly where your money is going and ways you can save. An audit is good way of streamlining your costs to save both time and money, while eliminating the confusion that you or your IT department might be having regarding your telecom bills. (And who isn’t confused by telecom invoicing? It’s been consistently voted one of the most complicated bills a company receives.) In fact, some research has shown as much as a thirty percent error rate on some telecom invoices.
Put Budget Where It Matters: Prevent cost reductions in vital areas
If your company is currently trying to reduce expenses to improve profits, then you know the challenge you face. How do you trim expenses and not hurt your company’s performance? One area that many organizations turn to first is their workforce. But often cutting manpower—while a good way to quickly save money—won’t help you in the long run. You need talented professionals to ensure your ongoing success so reducing labor costs should be your last resort. Instead, telecommunications expense management can help you trim expenses where they are rampant and unneeded—your telecom services. Studies have shown that many companies waste thousands of dollars per month in telecom. This is money you could definitely re-prioritize to areas of your company where it would serve you better.
Better Value: Get improved service and a better bottom line
The final and most important benefit of using telecommunications expense management is to improve your company’s bottom line. This really doesn’t need any more explanation that the fact that you don’t need to lose any more of your hard earned profit in unknown telecom errors or unused services. But there is another benefit too. You will quickly see that understanding, improving and streamlining your telecom service often yields much better telecom service as well. A good telecommunications expense management professional can help you find the right provider for you—saving you hassles, headaches and expenses all the way around.
Getting your telecommunication services under control and better managed will bring your company many healthy returns. Telecom bills don’t have to remain high when you take the time to truly understand what it is you’re paying for. Telecom cost reduction is possible but it is up to you to make it a priority.
[author_bio username=”Ken” name=”yes”]
