Controlling your overhead is essential to running a profitable business. Yet many businesses overspend an average of 30% on their telecommunications. A telecom cost reduction strategy can help you cut telecommunication costs and protect your bottom line.
So what can you do to lower your monthly communication expenses?
Telecom Auditing 101
A telecom expense management audit is an examination of all your telecom expenses. The audit should include all of your phone, internet, and voice-over IP services (VOIP; think Skype and Zoom). Data storage and network security may also factor into your audit.
A telco audit can reveal wasteful service overlaps and erroneous charges. Once you highlight a few areas where you can save money, you can renegotiate your terms as soon as possible.
Here’s how telecom audits work:
Make an Expense List
To begin, you’ll need to make a list of all of your telecom services from each provider. Include details about each service and itemize the expenses. As you take steps to reduce costs in the future, you can use this information as a track record.
Track Your Contracts
Most telecom providers require you to make a commitment, either in a set dollar amount or a duration. In some cases, you may see rate hikes after your commitment period is over. You should consolidate your telecom contracts into a document for reference.
Tracking your commitments lets you know when it’s time to negotiate or switch carriers for a better rate.
Keep a Copy of Your Tariff Cards
Many telecom carriers are heavily regulated. Ask them for a copy of your tariff card and use it for reference when you review your phone bill. In many cases, you can find errors and reduce the cost of your monthly payment.
Reconcile Your Expenses
Reconciling expenses is often the most time-consuming step of the process, but it’s the most critical aspect of telecom cost management.
Take the time to identify services you’re not using, and find any overlap. If you’re paying for the same service from two different companies, you can eliminate one to save your company money.
Telecom Cost Reduction Tips for Telecom Expense Management
Once you’ve itemized your expenses with a telecom audit, you can find savings by adjusting your services. Here are some common issues to consider when you’re cutting costs:
1. Read Before You Sign
If you accepted a subscription agreement as is, you may be paying for a service you don’t need.
Typically, your telecom bills break down all of the services you’re receiving. However, they don’t always make them clear. Make sure you understand everything you’re paying for and eliminate the waste.
For example, many phone plans include a long-distance calling bundle designed to save you money on voice data. Most business communications are done over email, cell phone, and VOIP services. In fact, many of these services allow you to do away with a traditional phone plan altogether.
2. Bundle Wisely for Telecom Expense Reduction
Bundling services with a single provider can reduce the number of bills you pay each month. They can also save you a lot of money, but only if you plan to use all of the services.
While they may not advertise it, most companies are willing to negotiate. You can work with a provider to find a package that best suits your needs.
3. Optimize for Your Current Usage
When you sign a contract, it will typically be geared toward your current level of usage. As your business grows, you may face service charges for exceeding your monthly usage.
Renegotiate your contract as soon as possible, and consider leaving a little room for growth.
4. Do a Monthly Telephone Audit
Extra fees on your phone bill are commonplace. They may appear as third-party charges, extra tariffs, or services you didn’t agree to pay. This can be a time-consuming process, but it can reduce your telecom cost significantly.
Slash Overheads With a Telecom Expense Management Audit
Is your team hitting a dead-end trying to bring telecom costs under control? Select Communications can help you with reducing expenses while freeing up your team.
Book your free telecom audit today. You’ll work with a team of expert telecom consultants who’ll do all the heavy lifting to unravel your telecom bills – reading long contracts and digging through convoluted invoices.
We help companies find an average cost reduction of 43% on their telecom bills. Better still, you won’t pay a cent for our services, making it a truly risk-free way to find immediate cost savings.
