Can Optimizing your Expenses have a big impact on your P&L?
1. Do you review your expenses for errors every month?
2. Do you check charges for overages?
3. Do you know what your contract charges are and do they match your bill?
4. Do you know what charges like “other services” refer to?
5. Do you feel like there might be errors but don’t have the time to review each line item on your telecom billing?
YOU ARE NOT ALONE! So many companies have fallen into the “I don’t understand what they are charging me for” or “they are a reputable provider so it must be right” or “I am busy so just get it paid”. Let’s look at one category – TELCOM. Most people think that telecom costs are fixed. In some ways while this may be true what if your telecom costs were OPTIMIZED and are they truly accurate to begin with. What if there were a few changes that you could make to your telecom bill that would save you hundreds, thousands a year. What does that additional income a year mean for you and your business? Whether the CEO, the administrator, the billing department, the IT department or whomever is responsible in your business for reviewing telecom charges for accuracy and submitting payment – this savings puts money back into the organization that provides for you.
Why pay more for something that you did not sign up for, a charge that your provider “snuck in” or an agreed upon contract that is not being followed? You are at the grocery store and grab the “deal of the day” – a loaf of bread for $1.19 and you go up to the register and you get charged $1.99. You look at the cashier and you just pay and say to yourself “well I am in a hurry and don’t have time to ask why I was charged more”. Then you look at your receipt and see charges like .20 for plastic bag, .20 for bag clip, .20 misc. other charges ??!
What? You would fight for that coupon or that tiny discount at the grocery store over a bag of bread – right? Yet thousands – no millions of dollars are paid in overages to telecom providers every year. Your money – out of your pocket – your business.
On average a company can save from 17% to 36% or more on their telecom bill once an audit is preformed to find unnecessary charges, overages, fees that don’t apply for texting, hosting, misc. service charges etc… Based on what the company has or has not done and if the contract amounts and expense reviews were poorly managed then optimizing telecom expenses in some cases can save a business up to 75%. Let’s say for example that your telecom bill is roughly $10,500 a month. That’s $21 per person for 500 employees. You are being charged $126,000 a year. A 25% yearly savings for you would mean $31,500. This is much larger that the pennies you’d fight over for the loaf of bread right? In the case of a smaller business with $6,600 a year in telecom expenses that would total a $1,650 savings. If you don’t mind paying providers for services that you didn’t ask for then continuing to pay telecom billing overages is the option you choose. But for a business that is willing to take the time to pull the telecom bill out and start to review and do a “self-audit” this is what LT~CRS as telecom reduction specialists recommend you do.
5 Simple Steps for Optimizing Telecom Expenses:
1. Look at your initial contract. A good place to start to see what you initially contracted with the provider.
2. Look through the bill and check off those items that make sense and you feel are correct and should be paying.
3. Highlight any other charges that do not have an explanation (misc. charges, other services, 3rd party charges etc…)
4. Contact your provider and review those items over the phone and get an explanation for each item. If it can’t be explained asked for it to be removed.
5. If there are any 3rd party charges that you were not aware of have those removed.
6. REPEAT each month. Unfortunately, charges sometimes continue to reappear.
Just a few simple steps can make a big impact on your P&L, however, if you feel that you need more assistance in reviewing contract, billing and optimize go-forward contract rates – or if you have any questions please call LT~CRS for detailed analytical processes, efficient procedures and proven best practices for many clients – over many years.