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"A
communication gap exists between what a customer said he wanted
in telephone service and what actually takes place in the
billing department of the telephone company," said Kevin
Shaw, president of Utilities Analyses, an Atlanta auditing
firm.
Unfortunately,
many businesses never catch the errors. They don't check the
bills, which can often run hundreds of pages. Often, the person
paying the bills is completely in the dark about the company's
telecom services -- whether lines have been changed, new service
added or dropped, or even what carriers have been selected.
On top of that, the bills include local, long-distance, broadband,
data, paging, cellular and maintenance services.
Many
business bills are so large that they come on CD. Bonistall
reports more than a few of his clients have never taken the
CD out of the wrapper. No wonder there's room for error.
Some
of the errors are simple, innocent mistakes, but they add
up. Access charges are typically only a few dollars a month
per line, yet it pays to look carefully at which lines are
being assessed the fee. Utilities Analyses recently saved
a company $3,000 a month in faulty access charges.
Sometimes,
companies pay for more than they need.
"You
could have call forwarding or speed dial on a line for $4
month that you never use," said Terry Mueller, a senior
analyst with Utilities Analyses.
Utilities
Analyses saved another company $1,000 a month by changing
its cellular calling plan from a national to a regional program.
The company only had eight cell phones, but it was wasting
money with the wrong plan.
Checks
and balances
For the do-it-yourselfer, Mueller recommends ordering a customer
service record from the phone company and studying it carefully.
"They'll
send it in English and hieroglyphics, but you'll get an idea
what you're being billed for and how much," he said.
He
also suggests making sure no one is making unauthorized long-distance
calls. Call accounting system software will allow you to pull
up a report by extension or department showing the duration
of calls, calls after hours and other details. Even if you
don't have the software, Mueller said most long-distance companies
can pull a report for you.
"It's
a good check and balance," he added.
In
addition to scrutinizing the bills, companies need to review
the deals they've already negotiated. It's a competitive world
and prices change constantly.
"Anytime
is a good time to look at the possibility of renegotiating
a contract," Bonistall said.
To
get the best contract, draw up an RFP (request for proposals)
and insist the vendor adhere to it so that you can compare
contracts easily.
Businesses
that don't need to contract for telecom services should still
compare prices.
"Small
businesses need to see what plans are available and make sure
they're on the right rate," said Bert Fridlin, the Georgia
state director of the National Federation of Independent Business.
The
association offers its members a discount for Simplexity.com,
a Web company that helps find the best service provider for
long-distance, local, Internet and Web-hosting services.
Rates
vary tremendously. Global Solutions Inc. found one company
paying $3.99 a minute for long-distance at a time when rates
run less than a nickel. The company never checked to make
sure its local phone company had put it with its preferred
long-distance provider.
Utilities
Analyses sources say two-thirds of its customers had been
paying too much for long-distance. As a rule, Mueller said,
prices should fall within these guidelines: five cents a minute
or less for long-distance and 800 inbound calls and less than
four cents a minute for dedicated or T1 lines. Of course,
greater volume should bring greater discounts.
Don't
forget to check local service prices. There's competition
now, and Atlanta has one of the largest local calling areas
of any city, making rates here a comparative bargain, but
it still pays to compare.
Picking
an auditor
For those companies that seek professional expertise or don't
have the resources to devote to telecom scrutiny, there are
companies that provide the service. Most, like Global Solutions
Inc. and Utilities Analyses, are paid on commission -- they
receive a percentage of whatever they save the business in
telecom costs.
When
picking an auditor, find out if the company has any alliances
with telecommunications providers. You don't want to hire
someone who is getting a kickback for services they sell you.
Finally, ask for references and check them. Make sure you're
dealing with a reputable firm.
Whether
you handle the job yourself or get outside help, experts say
there's bound to be a cash reward for scrutinizing your phone
bills.
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