In the last entry of this 4 part mobility cost-saving series, we explored the puzzle-like nature of mobility phone bills. The errors and opportunities for savings are always there. A monthly billing review ensures that you never pay more than you should for the services you receive, as well as ensuring you remain optimized by taking advantage of the most up-to-date plans that fit your company’s usage patterns.
In this entry, we’ll examine the often-overlooked master contract. Too often, when a customer engages our services, the first thing that stands out is that their master contract is more than 3 years old. If you haven’t signed a mobility contract within the past 24 months, you are likely overpaying every month as a result.
Our case-study customer fits this profile perfectly: their master contract was signed in 2010.
I can understand how this happens for most companies: negotiating a personalized mobility contract can be time consuming for a company who only goes through the process every few years (or less!). One of our clients estimates that 80% of their time is spent on day-to-day IT functions, leaving only 20% of their time for future planning, contract negotiation, etc.
Therefore, when a company goes through the often-painful process of negotiating a contract that they believe meets the needs of their users, they’ll often breathe a sigh of relief, tuck the contract in a drawer and return to their day-to-day IT functions.
The problem with this is that mobility plans and features are constantly changing. This is why you are likely overpaying if your company is still utilizing plans and pricing from a 2010 contract.
How can you ensure your users are optimized through the contracted plans and pricing? Update your contract every 2 years! Engaging a mobility expert is the best way to ensure your contracted features and plans are designed to fit your company’s needs.
A mobility contract expert will perform the necessary in-depth analysis of your company’s usage. It’s imperative to know these details before you start the conversation with your provider.
Common misconceptions held by inexperienced mobility contract negotiators:
Misconception | Truth |
| “We have 10 free features included for every user. Even though we’ll never use call forwarding, it’s free, so who cares?” | Mobility providers will never give you something for free! Think of your contracted plans and features as though they are boxes lined up on a see-saw. Every feature on the see-saw has a hidden dollar value, even if the provider is offering it at $0.There is a balance of features that the provider is willing to provide you. Therefore, if you have no need for voicemail because your phone system gives your employees single number reach, with a voicemail box on the system, take that feature off of the see-saw and balance it out with something more appropriate for your users. Perhaps you’ve discovered after doing a thorough analysis of your fleet’s usage patterns, that your users average 300+ text messages per month each. Negotiate a $0 text messaging package in lieu of the voicemail feature, thus balancing out the see-saw. |
| “The best way to manage voice and data usage is to negotiate large plans that are pooled.” | While it’s true that pooling large airtime and data plans will safeguard your company against overage charges incurred by “power users,” overprovisioning your fleet means that you are overpaying! Voice and data plans are also on the see-saw. Therefore, the provider is offering you large monthly plans at the expense of other features. Negotiate smaller, more appropriate monthly plans and balance the see-saw with more text messaging, or another feature that will safeguard your fleet against unnecessary overages. |
As our case-study client told us: “We have a great contract with great plans.” | Let’s assume that when you signed your master agreement, the plans and features were perfectly tailored for your users and their usage patterns. Too often, once a company goes through the contract process, they falsely assume that they are properly covered for several years (or more!). Plans and features change frequently! Therefore, a contract can be out of date as soon as 1 year after signing. Technology also changes quickly. 5 years ago I was negotiating contracts for clients with 4 MB of data (and data overages were very rare then!). Today, 6 GB data plans are standard because the devices and the applications demand more and more data. Your contracted plans needs to keep up with the technology, otherwise you will needlessly overpay every month. |
Performing routine maintenance on your master agreement not only controls your monthly costs by optimizing the plans available to your users, but it allows you to continually keep your employee’s hardware and technology current with minimal (to zero) capital expense to the business. In the final installment of this mobility cost saving blog series, we’ll look at the importance of maintaining current hardware and how a well-maintained contract can achieve this for your company.
Jennifer Caley,
Telecommunication Expense Management (TEM), Wireless Telecommunication Expense Management (WTEM) and Service Desk Manager of Nielsen IT Consulting Inc.
Would you like to be surprised by the savings opportunities that are hidden in your mobility bills? Call Jennifer today at 519-963-3035 or email jcaley@nielsenitconsulting.com for a no-risk audit. Remember, the errors and savings opportunities are always there – let Jennifer solve the puzzle and put money back into your budget.
Mobility Cost-Saving Case Study
Over the next four blogs, Nielsen IT’s mobility service expert Jennifer Caley will explore the importance of a monthly billing review, routinely scheduled contract renegotiation, and tips for regularly renewing your hardware fleet with current technology at minimal cost to the business.
- Part 1: Introduction
- Part 2: Managing Monthly Costs
- Part 3: Keeping Mobility Contracts Current
- Part 4: Outfit Staff with Current Technology at No Cost
