As a business owner, it is important to constantly look for ways to find cost reduction methods and increase profitability.
Raw believes competitive and transparent pricing can go hand in hand with a reliable and quality service.
We have put together some tips for staying in control and potentially finding cost reduction savings from your existing operating costs for services like Business Phone Systems, Connectivity and Business Mobile Phones.
Remove Unnecessary Services
Cutting any services or users that are now obsolete and out of commitment are a good way to achieve cost reduction on your telecom’s expenditure.
If your business uses a cloud phone system:
- Remove the extensions that are no longer being used
- Reduce your business broadband package to match the maximum speed available for your address
- Reduce costs by only purchasing the broadband speed your business needs
Consolidate Your Bills
Removing complexity is a simple way to find cost reduction on business telecom costs. Consolidated services to one supplier will give you greater visibility of your telecom services.
Having all services with one provider will make cost management a much less daunting task. Many providers may also offer discounts for bundling services together.
Compare Overall Contract Pricing
Promotional pricing can be great for new customers, but always check the overall contract price you will pay before committing.
The increased price after the promotion ends may be more than double the initial price. Over the full contract term this may mean you pay more or are forced into moving every couple of years to keep your price down.
Mid Contract Price Rises
Many service providers, but not all, now enforce mid-contract price increases. These are a fixed percentage increase plus an increase in line with the consumer price index (CPI).
This means in recent years an increase of circa 10% every April.
Customers can receive two or more increases to the price they agreed to pay depending on the contract length.
Ask yourself before you commit if your provider will hold you to mid-contract price increases and factor that into your calculations when thinking you have found a cost reduction for a service you require.
Keep copies of all your service contracts with suppliers. Keeping a good record of your contractual costs can be an invaluable tool to negotiate rates and cost reductions on your business telecom costs in the future.
Some providers automatically renew service plans for the same term and price if they are not notified otherwise. So, if you’re planning to switch providers, your contract can help prepare for when your service plan ends.
To achieve cost reductions, it can be equally necessary to compare pricing from different providers. Make sure you are comparing like-for-like services and have considered the cost reduction tips above.
Negotiating with your current provider is a great method to achieve cost reduction on services, especially if you’re happy with your current provider. Try negotiating a better deal.
Your current provider is likely to consider new pricing, in exchange for negotiating a longer contract or may even provide additional services at no extra charge.