Contract benchmarking and negotiating a telecom contract are chores that most businesses will have to deal with at some time. The tasks may seem daunting at first, but it’s a great time to ensure you’re getting the best possible deal you can while getting great service that’ll help your business run smoothly. If you have good negotiation skills, then you may be able to come out the other side with a fair and competitive contract. Read on to find out some of the best negotiation strategies that you can rely on in order to ensure that you’re getting the best deal possible for your business and network inventory management.
Reducing the MARC
The MARC is an important part of any telecom contract. MARC stands for minimum annual revenue commitments. It’s essentially the minimum annual costs that you’re required to pay your carrier at the end of your fiscal year. Keeping the MARC as low as possible is an important topic to bring up in order to keep your telecom costs at bay. You may even be able to negotiate the complete elimination of the MARC. Often, smaller carriers are more willing to completely get rid of the MARC. This is a good thing to bring up to the larger carriers in order to bring about competition.
No Long-Term Commitments
Technology is changing rapidly, and it’s important to be frequently looking for ways to make your company’s telecommunications system better. This means that what may work for you now, might not work for you five years from now. Telecom companies might try and offer you a better deal for a five or ten-year contract, but it’s important to not be tempted by those terms. Your telecom contact needs to include provisions for benchmarking, technological changes, and technology end-of-life terms. This gives you the opportunity to always be in control of your company’s technological future. Be sure not to get into any contract that keeps your business locked down for over three years. This gives you leverage to renegotiate your contract after that time period, or to go find a telecom company that’ll fit your company’s needs better.
Have a “Terminate-for-Cause” Clause
If your preferred telecom company isn’t providing good service as time goes by, it’s important for your company to have a way out. If you have an out clause, it’s going to make sure that the telecom company is going to make necessary changes in order to keep you as a customer. It’s also important to have terms that allow a “termination without penalty” clause as well to avoid unnecessary fees. Without that, your company might have to pay some hefty early cancellation fees in order to get out of that contract.
SLA, otherwise known as service level agreements, are the levels of service that your preferred telecom company are committing to. It’s importation to negotiate the best possible SLAs so your preferred telecom company will be committed to bringing these goals to your reality. This includes a clause to protect your company if the telecom company doesn’t meet the service quality that it promised in the beginning. Also, it’s important for your contract to have solid contacts for you to get in contact with if the company ends up not being able to meet the SLAs that it set in the beginning. The contract should have a clause that allows you to break it if the telecom company is not able to meet these certain criteria. In conclusion, your SLA should be clear, concise, and have your company’s back in the event that something goes wrong and the telecom company can’t meet their promises.
There’s no telling what the future holds for your company. Whether you grow or shrink, it’s important that your telecom contract has clauses that will grow with you. For example, if one of your locations or offices closed throughout the timeline of your contract, you shouldn’t have to keep paying for that one office. It’s important to be prepared for whatever may come in the realms of your company; and your preferred telecom company or should want to work with you no matter what may happen.
Different telecommunications consulting services are saying, even though telecom contracts are often complicated, they’re also negotiable as well. Throughout the contract, it’s important to make sure that the best interest of your company is being accounted for. If your preferred company isn’t providing the excellent service that you signed up for, you should have a way out and solid contacts in order to make a change. But telecom contracts are looking too frustrating to handle, you could always hire a company to do it for you. They are professionals available who know how to get you the best deal possible and negotiate terms that you can be satisfied with. At the end of the day, it’s all about getting your company the service it deserves and being able to put your full focus on your company’s goals.