Negotiating with Phone System Companies

How to Get the Best Deal From Your Phone Systems Provider

Phone systems, whether they are land or internet based, are the crux to most company's communication abilities. Shockingly, most businesses have never negotiated the price of their phone system. Telephone system costs add up quickly as you can expect to pay for a monthly service fee, equipment, maintenance, upgrades and the initial setup. If you just quickly ran those numbers in your head, you will probably want to negotiate a new price before you even finish reading this post-before you run off and start making calls, this guide will help you maximize your savings.

Here is a breakdown of particular ways you can save on your phone system:

• Educate Yourself: Know the needs of your company and learn phone system terminology. Don't let yourself get confused by PBX, VoIP, cabinets, or KSU-less. Do your research; it will pay off in the long run if you know what you're talking about.
• Budget: How much do you want to spend on a phone system? Be sure to factor in training, maintenance and setup.
• Equipment: This can be leased, financed or purchased. If leasing the equipment, ask about a buyback option which allows you to buy the equipment at the end of your lease. If you're considering the buyback option, include that price in your contract. This saves with installation costs and will generally lower overall equipment prices. Whatever you decide to do, ask for discounts-- if buying a lot of equipment, do they offer bulk deals? Do you qualify for system upgrades if you sign a longer service agreement?
• VoIP/Hosted Services: They want your business and may offer discounts on startup fees to be more attractive. With these types of phone systems, you can also negotiate the price of equipment (especially if purchasing in bulk) and always ask about the buyback option.
• Maintenance: Have your contract detail the speed of repairs. Having a timeframe will help prevent long waiting periods where your office could be phoneless. (Leased equipment may include/require a maintenance service contract.) **The timeframe for repairs is particularly important with hosted or VoIP phone systems**
• "Free": Don't negotiate or settle for things you do not need. A "freebie" that you will never use is a waste of your time because you will not benefit from it. For example, if your company does not use video conferencing, do not settle for that free offer. Counter video conferencing with something your office would actually benefit from.
• Included Features: Do not assume that your contract includes anything. Saying "of course it includes voicemail" can lead to major problems later. To prevent this, get a clear itemized list of what is included in your service package. Furthermore, make sure your company can support all of these features (you may need new equipment or an internet connection that is faster and can handle more bandwidth).
• Switching Providers: Can you "port" your current number to your new provider for free?
• Current Provider: Ask about discounted upgrades or additional features available to you if you extend your contract.

It is important to keep in mind that phone system service fees are difficult to negotiate but that additional features are much easier targets. Free upgrades and a less expensive setup is a prime place to start. Do all of these negotiations before you sign a service agreement. Verbal agreements mean nothing so ask to see it all in writing. 

Before switching to a new provider, find out how long your phones will be offline. Switching from a landline to a hosted system can take time to both to set up and train your employees how to use it. Keep this mind and plan for it by using cell phones or a backup landline.

Negotiating a new phone system service agreement or switching providers is quick way to see substantial savings so don't be shy. Educate yourself on what the competition charges, your company's needs and then be a fierce negotiator.

Monique L. Myers is a writer, surf instructor and an art enthusiast based in San Diego, California. She writes extensively for Resource Nation, an online resource that provides expert advice on purchasing and outsourcing decisions for small business owners and entrepreneurs.

Resource Nation provides free tools, tips, and purchasing advice for business owners and entrepreneurs in over 100 business categories ranging from phone systems to credit card processing.  Whether it's connecting businesses with local and national pre-screened vendors, or offering easy service comparisons on a VoIP service, Resource Nation empowers business decision makers by providing the information they need to make smart choices.