How to cost Justify a new VoIP Phone system

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Information about How to cost Justify a new VoIP Phone system

Published on August 17, 2009

Author: guest755177



How to cost Justify a new VoIP Phone system

ROI METHODS: A white paper by Pierre Kerbage VP of Sales: North America & Canada (408) 328-5423 Introduction: In this economy, for technology to get traction, it must either MAKE the client money or SAVE the client money, as well as improve efficiencies and shorten processes. To that end, Zultys resonates with that model by significantly saving the client money when using our systems in the most efficient way that they are designed to be used. ROI should be done at every pre-sales meeting. When you have setup a meeting with a prospect, and BEFORE you meet with that prospect, ask if they can give you a copy of their Local Telephone Bill Long Distance Bill Cellular Bill Internet Bill Other Data Bill You must have these for EVERY location where the client is considering a phone system change. Finding efficiencies through the Model is not hard, provided you have the right DATA. That data is found on these bills. When setting an appointment with a prospect – let them know that if Technology cannot SAVE them money or MAKE them money as well as make them very efficient, that they should not even consider the system. If it does not make $$, it does not make sense. The most important factor in showing a Return on Investment is to obtain PRIOR to your first visit a copy of ALL Phone Bills from ALL locations (if applicable) as well as all Internet, all Local and Long Distance and all Cell Phone Bills. Be prepared to provide the prospect with a list of needed items. Understand exactly how LEASING works and the factors and MEMORIZE THEM. Know that on a 5 year lease the lease rates will be about $23 Per One Thousand on a 5 year lease and $35 per One Thousand on a 3 year lease. So if the reseller is selling a 10K system on a 5 year lease, it is not unusual to see the monthly payments be around $230 per month. Develop a great relationship with your local leasing company ROI Methods: Conversion of Analog trunks to a PRI: This will vary from market to market. But essentially, here is the principle behind this ROI. A standard analog trunk (aka POTS) can run you between $23 and $40 per line (depending on the market you are in). A PRI can run between $300 and $450 (again depending on the market you are in). This means the financial breakpoint at which the customer can save money with a PRI is 12 Analog Trunks converted to PRI Numerical Example: Metrics and Example: Client has 17 phone lines. They are paying $35 per phone line or $595. Suggest a PRI for $350 Per Month. The savings here are $245 Per month. That’s enough to buy an $11,000 Zultys system (about) AND give the client 23 Phone lines (assuming a 5 year lease with a 1 dollar buyout) In essence – you did not raise their payments, yet you gave them a great system at 0 additional money than they are currently paying. If the system comes out to less, you can give them the new system AND they can save money ! Mr. Customer, could we install a Zultys phone system and get you 6 more additional phone lines for nothing ? Long Distance: SIP Trunks can either eliminate or significantly reduce LD, for around $30 per trunk per month. We have approved partners such as Proximiti and CBeyond,, BabyTel, BandTel, Broadvox, NexVortex, Paetec, and others. See complete list at Metrics and Example: Client has a $1000 long distance phone bill. You want to sell them a Zultys System for $20,000 On a 5 year lease to own with a 1 dollar buyout, that lease would be around $460.00 Per Month In order to offset the $460, purchase 3 trunks for around $90 per month That would bring the monthly payments to $460 (for the lease of the equipment) + $90 for the SIP Trunks or $550, a savings of $450 per month* Mr. Customer, can we install a Zultys system and write you a check for $450 every month ? *Assuming 3 SIP trunks will carry all LD traffic Location to Location: Means you eliminate LD between their locations (if they have more than one) Obtain phone bills and know the number of every one of their locations Now calculate the amount of LD they are paying in between locations and use the Metrics in Item 2 to justify. Hop off from remote nodes Cell Phone Gateways: Cell Phone Bills can add up to hundreds if not thousands of dollars every month for a company Fact:Many of these Cell Phone Bills are as a result of the Home office calling the people in the field (on their cell phones) Fact:When you have a single Provider, i.e. Sprint, AT&T, Verizon, etc – all calls within the provider are FREE (i.e. Sprint to Sprint, AT&T to AT&T, etc…) Fact:When placing a call from the office to a cell phone # (to a coworker) instead of going out from the PSTN, you could us a CELL PHONE LINE ? That is what a cell Phone GATEWAY DOES Cell Phone Gateways are appliances that can be installed with our Zultys Phone System so that when an inside caller wants to call a cell phone, the Gateway has the ability to place that call through the SAME CELLULAR NETWORK as your cell phone Provider. Cell Phone Gateways are sold in 1, 2, 4, 8 or more ports and for ANY Provider. Cell Phone gateways are also used for REDUNDANCY (in case your main line get cut out) You can even get an account with SKYPE and use a Gateway to SKYPE Cell Phone Gateways average about $250 Per Port + the cost of a Cell Phone Plan Metrics and Example: Company spends $1000 on inter cell phone talks Zultys System costs $20,000 (includes a 2 port Cell Phone Gateway) – that’s $460 Per Month in a 5 year lease to own All you can eat Cell Plan for the Gateway is $99/Month. Cost is $460 + $99 = $559 Buy a Zultys Phone System and save $1000-$559 = $441 Per Month or $5292 per year Mr. Customer, could we install a Zultys phone system and give you a check for $441 Every month ? Integrated PRI – Integrated T1. Etc…. Many LECs and CLECs today will give you a substantial discount if you combine your voice and data services with a PRI. Metrics and Example: Client has 16 Phone lines and a T1 Client is paying $40 per phone line and $450 for his T1. or a Total of $1050 Most CLECs today will offer an Integrated PRI with 23 Phone lines and a Full T1 for around $600 or less resulting in a rough $400 per month in savings pr $5,000 per year cost savings back to the company. Client is spending $1050 on their Telecom You sell a Zultys system for $20,000 or $460 Per Month You get rid of their existing 16 Phone Lines and get them an Integrated PRI (23 phone lines) and a full T1 for $600 IN essence, for the SAME AMOUNT of money they are spending today, you have given them more phone lines and a brand new phone system Benefits of a PRI: 23 Phone Lines (23 Channels + 1 D Channel for Management) Digital not Analog Sound quality is better More Reliable – Fiber Backbone Managed DID RJ21X not a bunch of wires everywhere Fax Server: Less paper Less toner Less time/productivity wasted learning how to use Less time waiting for the fax machine Privacy issues Efficiencies gained from not having to resubmit LD costs of having to recontact clients to resubmit What is the $/Hour gained for improving efficiencies $/Hour costs to archive and save One too many Telecommuting: Working from home can offer savings to the employee and employer – think about Gas/Fuel savings less mileage/wear and tear on the car Savings on clothes sent to the cleaners Cheaper (and better) meals Baby and/or Pet sitter Metrics and Example: If an employee can work from home, have them write down all the savings they would accumulate monthly if they could work from home. Present that to the employer. Let’s say it comes up to $500 per month – give the employee a $250 (half) salary cut per month and the employer retains the other half. You do this with enough employees (if they can work from home) and the monthly savings now more than pays for the lease of the equipment. And now, since the employees are working from home, employer can save on Real Estate (move into a smaller place), less electrical, heating/cooling, Software and Hardware, office supplies, bathroom supplies, water, coffee (it adds up QUICK) 10 Employees state that they can save $500 each You give each employee a $250 cut in pay and let them work from home Employer retains $250 x 10 or $2500 cost savings PER MONTH or $30K per year Example of a Zultys System that costs $40,000 or $920/Month on a 5 year lease to own. $2500 - $920 = $1580 per month to the bottom line or an $18,960 GAIN back to the employer and a brand new phone system AND not to mention all the savings they will have on moving to a smaller office, etc… Less money spent on annual maintenance What is the old legacy system costing you ? Savings on Moves, Adds and Changes (assuming that the VAR permits client to make changes) Savings on Time Change Efficiencies/Soft dollars: Auto Attendant:Save money on personnel (no need for a receptionist and route more calls). Also save time on people who call to ask the same questions (Address, Fax#, fixed messages, etc…) Chat Better internal communication Find me Follow me:Get connected with 1 call. Save time Unified Messaging MXIE Visual Voice Mail Call Record:Prevent law suits Call Record:Improve customer experience by letting employees listen to where they went wrong Call Detail Reporting:Understand and monitor your calls and return missed calls ACD:For departmental use and for inbound call centers, ACD can be an effective tool. By routing calls to a department or group of operators rather than an individual, businesses can provide quicker service for their customers, and their operators spend less time routing and re-routing calls. Conference Bridging Webinars:Save Money on Travel Additional revenues can be obtained by partnering with :LECs, CLECs, SIP Providers, Wireless carriers, etc… or at least obtain a symbiotic relationship by trading leads-24574510403840

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