BUSINESS TELECOMS
The deadly sinsof telecoms
Dave Millett of Equinox explains how to improve your telecoms services and save money.
T 1
he rest of the year looks likely to continue to be series of challenges for most estate agents, so every opportunity to save money and improve client
contact should be explored and capitalised upon. One key area is telecoms, with bills being a major element of most firms’ costs – plus the hidden expense of lost business caused by an inadequate or inappropriate system. With an extensive range of options and new solutions emerging almost daily, the challenge is deciding which is the right one for you. With so many suppliers, how do you avoid committing one of the seven deadly sins that befall the unwary when making a decision? Read on.
2 Cheap headline tariffs don’t always save money
Many advertised tariffs look very attractive, but there could be hidden dangers lurking. Always ask if charges are per second or per minute; if there is a set up charge for each call; are prices rounded up? True per second billing can reduce call costs by up to a third. Also check on the cost of calls to 0844, 0845 and 0870 numbers and international destinations as often suppliers only
when and against what benchmark their tariffs are compared with. Investigate the cost of cancellation; some
CheCk the ContraCt Before signing any telecoms contract check on its length – a number of less scrupulous firms have conditions that say unless stated otherwise contracts are deemed to be for 60 months – five years! Telecom costs in particular for calls tend to reduce over time – so long term deals often cost more overall. Some of them commit to regular reviews, but be sure to check if they define
companies will charge you the full balance of rentals and expected call volumes, whereas others will just charge a percentage of the rentals. One estate agent in South West London was caught out by this ruse and threatened with three and half years of charges should they cancel their contract, which prohibited them from saving money from a cheaper supplier. Finally check the renewal policy, some
give time windows in which you can cancel and others will auto renewal unless you proactively change it.
Less scrupulous firms have conditions that say unless stated otherwise, contracts are deemed to be for 60 months!’
highlight costs of UK numbers and hide the more expensive destinations. 80% of companies do not check their
bills, but it is worth doing every six months at least, particularly with a recent spate of Telecoms acquisitions. One company ‘lost’ their special tariff when their supplier was acquired – their details were transferred incorrectly; they are now getting a rebate of £1,500 following an audit of their bills.
3
Capped Calls and bundled Call minutes Capped call prices and free minutes appear to be a great deal, but the average business call in the UK is two minutes. For estate agents it is often shorter – think how long it takes to confirm a viewing. At this level many such deals have a high minimum charge, it can cost you more. It is essential to undertake a detailed analysis of invoices to see if it will actually be beneficial. Similarly, flat fee bundles with unlimited
local and national calls are fine if you have high call volumes, but it can cost more. One company recently saved £3,200 by cancelling their bundle packages and moved to per call basis from another supplier. Check exclusions; some of BT’s deals exclude calls to the 3 mobile network, about 10 per cent of all connections. One area where bundled minutes
can benefit is on mobile contracts. Minutes are shared across all the handsets, yet many estate agents think it is more cost effective to use individual personal contracts or repay expenses – in most cases it is not.
PROPERTYdrum OCTOBER 2010 17
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