More Savings on Local and Long Distance Expenses

This is a follow up to my recent article entitled Telecom Savings. There are many ways to keep a lid on telecom expenses, some more obvious than others.

Some carriers would have you think you will get the best price by combining all of your services. This could be true, but it is not necessarily so. Consultants agree that volume is not really the issue. Your willingness to change carriers is much more important. The fact that you are ready and willing to switch to a new provider will allow you to negotiate the best price. One consultant reported that the best pricing he had ever seen negotiated was to a customer who reviewed his contract each year, and changed carriers when he had to.

Non-incumbents usually offer the best pricing. If you are strictly concerned with your cost per minute, you may have to change carriers frequently.

In addition to looking at new service providers, think about dividing your traffic among at least two providers. This may benefit your bottom line, but more importantly it provides backup in case of network failures or even bankruptcy. Diversity is part of the disaster recovery plan of many organizations. Even if it cost you a little more per minute, the backup could prove well worth the price when you need it.

Diversity also keeps your providers on their toes. Knowing they have competition for your traffic, they will work harder to keep you happy. They are also likely to accept a lower margin, rather than lose the business altogether.

When reviewing your contracts, accept bids from second tier carriers and CLECs (Competitive Local Exchange Carriers). While the numbers of CLECs has diminished, those remaining are generally very customer focused. And you probably know that good customer service can be priceless. But you generally don't have to pay a premium. Make sure you give them an opportunity to bid.

There are a number of ways to save on telecommunications expenses. No matter what carrier or carriers you are using, know their competition. Knowing the environment, and at least ball-park pricing, will prove invaluable when negotiating.