Wireless Contract Negotiation

This is our final continuation in our “Wranglin’ an RFP” blog series. We strongly suggest that you read Part 1 and Part 2 before diving into Part 3. [Read more…] about Wranglin’ an RFP – Part 3 of 3

This is the second part continuation of our “Wranglin’ an RFP” blog post series. Click here to read Part 1. Already read Part 1? Then read on to learn 3 more steps on how to “wrangle” your next RFP: [Read more…] about Wranglin’ an RFP – Part 2 of 3

8 Steps to Reduce Total Wireless Costs

In this four-part blog series, we’ll be cover 8 steps that are crucial to making the most out of your RFP.

A wireless RFP (request for proposal) to negotiate a new carrier agreement is a simple, yet very complex process.

Sound confusing? It is much like baseball. A fairly simple game – hit the ball, run the bases, score more runs than the other team, and hopefully win. However, there are also many variable complexities. For instance, when to put in a lefty pitcher, what pitch to throw (curveball, slider, change-up), when to steal a base – you get the idea.

That is a lot like the RFP process. Except instead of scoring runs, your ultimate goal is to get the lowest price for the best fit of services to your organization. The complexity: when and how to do it, how to interface with the carriers, what way to get the best industry standards for competitive advantages?

[message type=”info”]RFP Defined: Documentation of detailed requirements by a customer in order to receive, negotiate and implement vendor offerings[/message]

The goal here is to give a quick primer for any business organization who is beginning a wireless RFP implementation. We hate longwinded introductions as much as you do so let’s get started:

STEP 1 – Determine organization wants and needs

This can sometimes be one of the trickiest parts of an RFP renegotiation process: you want everything at the cheapest price. Well, that’s just usually not reality and therefore you need to be discerning about your non-negotiables versus your wants.

This is a very customized and organization-specific decision, but here are some real world examples:

1. Customer 1 didn’t care about individual liable discounts, but really wanted to get early termination fees (ETF) waived
2. Customer 2 didn’t care about ETF fees, but wanted a much better discount and flat fee replacement equipment
3. Customer 3 simply wanted free equipment and could live without a port-in credit

Each of these examples provides bargaining power and things that can be given up to align the real needs of the organization with the capabilities of the provider. Additionally, coverage often plays a key role in this decision as usually there is not one provider that can meet all the needs of every organization.

STEP 2 – Be reasonable about what to expect

We usually set the expectation that a well-done RFP will result in a 10-20% savings from what the organization is paying today. This is assuming the organization is already optimized and on competitive rate plans. If that is not the case, the savings are usually significantly greater.

Keep in mind some of this is difficult to quantify because there are many avoided costs in an RFP which actually never show up on a bill. For example, we have frequently negotiated a free or reduced cost for a text messaging plan. Because users did not have a text message plan before due to its expense, the organization can now add the feature free of charge and have the benefit of the productivity tool but not the cost. Here, the cost was avoided (getting a feature the organization is not paying for, therefore avoiding the cost in this case).

Also, check out our blog post for more on what businesses should pay for wireless.

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Click here for Part 2 where we explain our exact strategies we use to get deep discounts and free stuff for our clients.

We seem like we have been in RFP-ville lately….many of our customers are going through the renegotiating process and it is indeed a learning experience. This blog post will be part of a series and offer some tips for before, during and after the process in order to have you avoid some pitfalls you might otherwise plunge down.

First: You’re In Control
This is the only time in a few years when you actually have leverage with the carrier. Take advantage of it and USE IT! We love to do RFPs and really see the results from a job well done. Don’t let the carriers tell you something can’t be improved. It always can, especially if you are willing to do some good negotiating. Laugh a little; trust us, there will be plenty to laugh about.

Second: Do your homework
Learn everything you can about the competition, the industry and offerings to other customers. This is where we really make a difference. As a WEM firm, we see across all carriers and many customers, and while we cannot provide specific data on specific customers or carriers due to confidentiality agreements, we can guide and provide many industry suggestions on what offerings are out there to similar type customers. You can’t believe what a difference it makes just to have us sit at the table and keep the providers honest.

Third: Ask for as much as you can
You won’t get better discounts if you don’t ask for things. Ask for as much as you can, the carriers can only say “no” and will often say OK or counter offer. The good ones will negotiate a clever term or a creative way to give you what you need and also be able to satisfy their finance team requirements. Often it can be all in the framing of the issue. Additionally, there are so many ways to save money on the bill and several buckets carriers can dip into to provide you with creative credits. Ask for them!

Fourth: Know your numbers, then ask for stuff AGAIN
If your corporate budget requires a 20% reduction in spend, make sure to let the carriers know your numbers and how far off they are. Frequently, with a good business case, they can go back to their pricing folks and get stuff if they know it will take “$X”. We had a great relationship with a carrier working on an RFP and we simply said, listen, we need $X to get the job done. It was a significant number, but it was an accurate one and it worked. The carrier came through, got their contract executed and we got a great deal for the customer.

Fifth: Actually read the final documents before you sign them
It will never cease to amaze us how many times the language you thought you agreed to is not the language that ends up on the final agreement. Be sure to read it, get clarification and make ANY changes you believe need to be made to insure your rights are protected.

Finally, HAVE FUN
While this is a long process if done properly, be patient and use the time for reviews and processing to marinate and insure you have deal you want. Then, step back, make sure the changes are implemented and reap the financial rewards.

Hey ATT Business users: a loophole means unlimited data for AT&T iPhone due to billing issue class action lawsuit.

It has been recently reported that AT&T is overcharging for data and a pending federal class action lawsuit claims that “AT&T’s bills systematically overstate the amount of data used on each data transaction involving an iPhone or iPad account,”. The plantiff actually ran their own study by purchasing a phone, disabling all data functions and still were billed data charges by ATT. The suit charges AT&T with five counts including unjust enrichment, unfair business practices and violating the federal law that prohibits “unjust and unreasonable” telecommunication charges.

The suit claims that AT&T overcharged users data anywhere from 7-300% more than actual usage. And while on a 50KB download speed, this data usage could be as small as 53.5 KB (7% over), it could also be billed as much as 600KB (300% over). The claim also states that AT&T is billing not only higher than accurate overage charges, but that they are also billing for phantom usage (e.g. billed for usage that never occurred) This is especially concerning to business users when one looks at the aggregate usage of data over many users. Here are all the details on the lawsuit.

In a related article in the Huffington Post, a spokesman for AT&T defended the company. “We have only recently learned of the complaint, but I can tell you that we intend to defend ourselves vigorously. Transparent and accurate billing is a top priority for AT&T,” he said. The link to those details are here: Huffington post reports .

One important loophole to this issue is that AT&T is now offering unlimited data plans to existing users. A yahoo news article explains:

“AT&T has allowed subscribers who have had an unlimited data plan in the past to switch back. That includes anyone who had an iPhone before June, when the limited plans took effect”.

AT&T spokesman Mark Siegel wouldn’t confirm the option to return to an unlimited plan. “We handle customers and their situations individually, and we’re not going to discuss specifics,” he said.

AT&T has always allowed iPhone and smart-phone users with unlimited-data plans to keep them when upgrading directly to a new device, but it is the ability to return to an unlimited plan after going limited that is the carrier trade secret they want to keep under cover.

Protect your wireless rights; make sure, like the carrier, you get your unfair share.