Right now, most businesses are under enormous pressure to slash unnecessary costs. Executives are challenged to do this in an intelligent way, by identifying areas of waste and strategically eliminating expenses in places where it makes sense.
This is often much easier said than done in telecommunications, though, where companies tend to pay far more than they have to because of limited visibility and knowledge. As it turns out, companies can usually save around 40 percent or even more when they actively choose to reduce monthly expenses.
Here are some ways that this can be accomplished:
Prioritize Cost-effective Communications
One of the top reasons why companies overspend on communications is due to a lack of internal awareness and transparency. Tasks like reviewing, approving, and paying bills can be spread across different departments, leading to knowledge gaps and paying for services that are no longer required.
For this reason, it’s a good idea to have a system in place to protect against unnecessary spend. This could be accomplished by requiring a multi-stage sign-off before sending payments, or even by having a regular cost reduction task force to meet and review things like billing and vendor relationships. Some communications providers also offer a single monthly bill for everything owed across the organization--even if it has multiple locations. Prioritizing cost-effective communications can be as simple as finding a provider who will work with your team to help you save money without compromising solutions or service.
Drill Down Into Offerings
Oftentimes, businesses will get comfortable with their vendor relationships and assume that they are being given honest and fair pricing, when in fact they are being fleeced by hidden fees and paying for services they don’t need.
It’s vital to regularly review standing agreements and compare them with the latest offerings, to avoid overpaying for services that could be obtained for less money. For example, vendors will sometimes partner with service providers, resell their platforms under their own label, and charge more for usage fees. It can be far more cost-effective to find a vendor who owns their own technology, and is able to keep costs low.
Look for A Way Out
Vendors like to try and hook businesses by making them sign binding deals with expensive termination fees. However, options are always available if you need to get out of a contract. You may be able to qualify for incentives like funding to cover early exit fees, or even free service for an extended period for jumping ship. Don’t be afraid to negotiate or explore the market. As the customer, the power is in your hands — not the vendor’s.
Leverage Bundled Offerings
The communications landscape is more complicated and expensive than ever. With text messaging, voice, video, and data, the list of critical services is getting larger by the year, making it difficult to track and manage ongoing expenses.
The best way to stay on top of expenses and avoid this is to look for competitive bundles, for needs like business voice, team collaboration, and other essential services. You’re guaranteed to get a lower cost, and in addition, you’ll have a single vendor to go through whenever support is needed or extra services are required (like SD-WAN, or PSTN fax).