The Dirty Lowdown of Hosted Phone Systems

It’s the latest buzz in telecom… a “hosted phone system.” So, what is it and why should you want it? First, I’ll explain what it is, then you can decide if you want it or not. A traditional business phone system consists of desk phones and a server (a black box about the size of your DVR at home). This is known as a PBX system, and it comes with all the right stuff like voice mail boxes, auto attendant, caller ID, voicemail-to-email, and music-on-hold. You buy this “bundled” system and you own it. Period.

A hosted phone system has all these features but you only need to buy the phones, not the server. Your host owns the server. Here’s what a hosted system provides:

1.       Lower upfront costs

2.       Easy as 1,2,3 process

3.       Same phone features that you would get if you purchased your own system

Soooo, why wouldn’t you go with this? Read on.   

With a hosted solution, you spend money up front for new phones. Two items you don’t pay for are installation and the server. Here’s a scenario that happens more often than not:

Sue’s company decides to go with a hosted phone plan. They purchase 5 phones for around $600. It’s a great price. Then they decide that they want voice mail boxes, an auto attendant, caller ID, voicemail-to-email, and music-on-hold. Ok, great… that’s going to cost, on average, an additional $5 per month for each feature on top of each user’s fee of around $20 per month.

Doing the math our total is $100 + $25 per month. Not too bad. Keep reading…

Next, most folks don’t know this, but companies that provide hosted solutions often charge you extra for minutes - outgoing AND incoming- at around 2.9 cents per minute. Sue’s company uses around 3,000 minutes per month, adding an additional $90.

Again, the math says $125 + 90 = $215/month. Are you seeing a trend?

Still not too bad… right? Well, Sue receives that “box of phones” via U.S. mail. She stares at it for a moment and wonders “what do I do now?” She calls her hosting company; they tell her how to plug the phones in. She does… they don’t work. The service rep (from who-knows-where) tells her “Well, it sounds like you need a new router;  yours isn’t big enough to handle more than one call.” Great… Sue drives to an electronic store, talks to the tech geeks, and discovers she needs a $500 router. “What?!” Exasperated and knowing she’s tied into this hosted system, she buys it. After four hours of fruitless attempts struggling to get the network set up, she finally calls an IT guy to come out and help. They charge $125/hour. It takes them two hours.

Now her total is $600 (phones) + $500 (router) + $250 (IT guy) = $1,350 in upfront costs. Add in the $215/month, every month for phone use and she’s at $2,580/year – how did that happen?

Her first year total is $3,930; the second year it “goes down” to $2,580…

Now, let’s compare to the traditional PBX system. Of course, in this scenario, Sue decides to work with Phoneworx. Hey it’s my blog and I’m a Phoneworx’er J

She visits the Phoneworx showroom and plays around with the phones – seeing how they feel, look, and sound – and picks the one she wants. She loves the look and feel of the Cisco system and she is ready to go!  Four to seven days later our technicians visit her office and handle the entire installation.

They set up the phones and internet with voicemail boxes, an auto attendant, caller ID, voicemail-to-email, and music-on-hold all at no extra cost – it’s included! The next day a Phoneworx representative visits Sue’s office and provides training to all the employees.

Sue is excited because she never had to stop working or be involved in the installation or networking… there is a reason why IT networking people exist. It is not easy to do it all yourself.  The coolest part?

There are no added fees for incoming or outgoing calls, no long distance charges, and no additional monthly fees. For a five-phone system Sue spent $2,900.00 once, that’s it!

Her first year total = $2,900.00; the second year = $0…

So, what’s the moral to Sue’s story? If you spend a little more money upfront you can spare yourself frustration and stress in the long term. Plus you can save A LOT of money over time. Even better – Phoneworx is right here in Greenville to help you and your employees if anything ever goes wrong.

So there you have it, the dirty lowdown of hosted phone systems.

-          Sabrina –

“Your phone system expert”

Differentiation: Being a PURPLE Cow!

Earlier this week, my boss told me that we needed to continue to position and brand Phoneworx as a “purple cow” within our industry. Seeing my confusion, he painted the following picture: “Imagine this – as you drive down the road, you pass by a field filled with cows.  Most of them are black or brown, but one catches your eye. Why, because he is so dramatically different – he’s bright purple!  Strange? Yes. But he definitely got your attention!” With so many small businesses competing for customers, differentiation and proper image have never been more important. 

We live in a world of commodities. There are hundreds of banks, dentists, website designers, realtors, landscapers, and the list goes on and on!  In almost every way, these companies offer the same or very similar products and/or services. So how does one choose?  Let me give you a great example.

As a new resident in the Greenville area, I needed a new dentist.  So, the first thing I did was ask a coworker for a referral. He suggested I go see Dr. Brian Derrick at Falls Park Dentistry, located right downtown.  His personal referral carried a lot of weight, but didn’t seal the deal.  I had to be happy with the service if I was going to stick with this dentist. I called the office, was greeted kindly, and was able to set an appointment at the desired time on short notice – off to a good start. When I arrived (only having to walk a few blocks from the Phoneworx office), their office was really cool, clean, up to date, and the staff was responsive and friendly – still lookin’ good!

But, here’s what did seal the deal… Prior to beginning the actual examination and cleaning, I was offered a warm neck pillow, a paraffin hand treatment, and my own personal HD television to watch. Further impressing me was that the dentist used all the latest gadgets in the dental world. To top it off, Dr. Derrick was kind, funny, and willing to answer any questions and concerns that I had – I felt like I had been his client for years and it was only my first visit. The only thing missing was music-on-hold for the phone system. Phoneworx took care of that right away. J

WOW! Now, that’s what I call a “purple cow.” 

Similarly, at Phoneworx, we work hard at being purple. We want to be much more to our clients than simply a company that services and installs business phone systems. For example:

1.       We don’t ask clients to pick a business phone system out of a catalog! We have a state-of-the art showroom where you can touch, see, and hear our products prior to purchase. 

2.       We’re located in beautiful downtown Greenville, not an industrial park or some garage. Clients can stop by anytime to visit, to ask questions, or simply to enjoy the balcony overlooking Main Street.

3.       Our salespeople are non-commission, your assurance that you’ll never be “up-sold”. Suggestions are based solely on your needs – nothing else.

At Phoneworx, we are not content to sit on our hands or “ride the wave.” We are committed to continually being on the cutting edge in our industry, and sharing that knowledge and information with our clients. Above all, we are committed to helping small businesses to differentiate themselves!

What color is your cow? 

Megan

Attention Small Businesses! Are you connected to your customers?

In today’s world, it’s no longer about what you know or even who you know. Now, it’s all about how fast you can connect with the people you know via text, email, social media, or phone. We live in an extremely “connected” society where colleagues, friends, family members, and customers’ expectations continue to rise in terms of response time to any method of initiated communication.

If a customer calls and leaves a message, or sends you an email, they expect a response back within a few hours.  If you don’t have mobile access to your email, your company’s phone system is broken, your voicemail doesn’t work, or you forget to “call-in” to check your messages – you could do a great deal more damage to your business than simply upset a customer.  Failure to respond to a customer’s message– positive or negative – can lead to poor customer experience, loss of business, and negative reviews via websites, social media, and word-of-mouth.  Reviews posted on the web are viral, damaging, and can theoretically live forever…

So, what’s the good news?

Telecommunication and mobile phone technology have advanced at a rapid rate over the past decade.  There are now numerous smart phones that can be used to access email, or voicemail sent to email, remotely from any location.  In addition, VoIP (Voice over Internet) business phone systems now have numerous built-in features at no additional cost to your business. These include remote office, call-forwarding, caller ID, and more! These state-of-the-art business phone systems provide all the bells-and-whistles that your business needs to stay CONNECTED. They also provide an easy platform to create a truly unified communications system – where your computers and telephones “talk” to each other – making your business life much more streamlined.

Our company name is a beacon for our mission: we want to help businesses get what they really need – plain and simple – a phone system that works!  An added bonus is that these systems can help to easily facilitate three basic things that most small businesses are working to accomplish:

1.       Saving money

2.       Growing their business

3.       Differentiation in order to outshine the competition

So ask yourself: Are you truly connected with your customers?  Does your business phone system work?  If your answer is anything other than a resounding “Yes!” don’t rip the copper phone wires out of the wall, throw your computer out the window, or beat your office phone with a baseball bat – call Phoneworx, we can help.  J

Until next time,

Megan

More, you might need a new business phone system if…

OK, I know you’ve been waiting with bated breath, unable to hold back your excitement for this next installment!!   Every day we encounter new and “interesting” phone systems – some of which are older than me – and we simply cannot resist sharing with you yet another top 10 things that indicate you might need a new phone system… Here goes!!

You might need a new phone system if…

10.   The speakerphone used to belong to the Moonlight Drive-in.

9.       A redneck installed your phone system.

8.       The Geek Squad refurbished it in the late 1990’s.

7.       The server cabinet looks like a refrigerator.

6.       The phone rings after you answer a call.

5.       The phone has a beer belly.

4.       You have to unplug your phone to hang up.

2.       It requires a quarter to make an outbound call.

3.       The music-on-hold machine only plays 8-tracks.

And finally, the number one reason you might need a new phone system…

1.       The filter is dirty.

What’s in your phone closet???

-        Terry

Hiring an Expert vs. DIY - Getting the job done!

The other day, I came across a quote that made an impact upon me as a small business professional. 

“The way I see it, in the eternal battle between ‘do it yourself’ or ‘suck it up and pay an expert,’ there is no wrong answer – as long as something gets done.” – Rick Spence, writing in the Financial Post

This particular quote comes from an article that happens to address the topic of marketing research. Spence discusses the pros and cons of entrepreneurs or small businesses attempting to conduct this involved process on their own v. hiring an expert.  Although one might cost more money than the other, when additional factors like time, stress, equipment, and knowledge are brought into the equation, the financial gap begins to close.

In today’s business world, there is an ongoing debate on topics ranging from Social Media Marketing to Real Estate to Home Improvement of whether or not individuals and businesses should delve into a project themselves or hire professional help. In the end,  even though many times there is ‘no wrong answer’ as Spence states, often hiring an expert can actually save you time AND money!

If you are a company who charges by the hour for your services or you have a valuable employee who is being asked to do work that they are neither knowledgeable about (requiring time spent learning), nor motivated to do (no sense of urgency), you could actually be losing money.  When a small business takes on a DIY project, I see it as burning the candle (or budgeted dollars) at both ends.  Not only is revenue-generating time in the field lost, time is being spent attempting to understand a system, project, or problem that will likely eventually require professional assistance.  Moreover, if an employee or entrepreneur is unhappy working on a project, the quality of work will almost certainly be sub-par to that a professional could do in significantly less time and with less effort.

In the end, if your business has a need, it can actually be financially beneficial to seek the help of a professional. For example, during your career, how much time have you spent/ wasted fighting a poorly-performing office phone system? How many times have you fruitlessly flipped through the 1000+ page manual or attempted to unsuccessfully re-program your handset? If you’re like I was in my previous careers (working in banking and for a small Chamber of Commerce), the answer is a lot!!

Since we are a telecom company, of course this is the best example that comes to mind.

However, don’t think that I am saying that you need to hire Phoneworx to fix your phone system; I don’t even know if you are in need of our services.   What I am suggesting is that the next time you need help in your business, rather than spend time, effort, and energy on un-fruitful DIY project attempts – consider consulting an expert.  You’ll save time, you might save money, and you’ll definitely have the satisfaction of a job done right!

Of course, if you do have phone problems, Phoneworx can help J

-         Megan

Taking the Mystery out of SIP & Shedding Light on its Many Benefits!

Until very recently, I had never before heard of SIP.  To me this three letter acronym was something that people did when taking a very small drink, not a techie term describing the methods behind our usage of the Internet to connect via voice, instant messaging, and even video.

In my attempt to understand the benefit that SIP offers to me and our business here at Phoneworx, I’ve delved a little deeper into the subject. My hope is that my understanding and explanation can be of use to you and your business – that you can gain something by being, as they say, “in the know.” J

SIP stands for “Session Initiation Protocol.” It is a network communications protocol used for “establishing sessions in an IP network” (www.sipcenter.com).  Once a session is established, these can be used for quite a few things, including phone calls.  In fact, VoIP (discussed in a previous post) uses SIP as its preferred protocol.

SIP’s ability to establish, manipulate and tear down Internet sessions has greatly influenced the telecom industry. It brings together myriad elements in the communications arena and facilitates “connectivity” in today’s fast-paced business environment.  SIP helps session originators (callers) route calls to people who may have changed location or equipment and brings together multiple streams of various media. 

Overall, SIP delivers key signaling elements, which can turn a voice over IP network into a true IP communications network – a network capable of delivering next generation converged service. SIP is a powerful tool helping us to establish “sessions” over which we can connect via phone, IM chat, video conferencing, etc.  SIP does for Internet communication what HTTP does for browsing the World Wide Web.

In a nut shell - SIP is SIMPLE. 

By utilizing SIP and IP phones (as opposed to traditional analog phone lines) your business can more readily connect the dots – bringing all of its communications, voice and data, under one umbrella. It can simplify your processes and improve customer interactions.  SIP helps to eliminate redundant steps that occur when communication tools use two different platforms and eliminates cumbersome procedures that come with moving or changing traditional analog phones. With IP phones and SIP, moving offices is as easy as unplug, pick up, plug back in – there’s no need for additional (possibly expensive) service calls.

SIP is available, it’s effective, and it can be hugely beneficial to those who take advantage.

Have you used SIP today? 

Maybe you have, and you didn’t even know it...

-         Megan

Positioning – Have you made it into your customers’ minds?

Positioning is a “buzz word” in the marketing world. It is a frequent topic of conversation and – truth be told – can be a critical factor in your company’s success (or failure if executed poorly). 

Many times, people see positioning as how a company chooses to ‘present’ itself, its product, or its services to potential customers.  It is viewed as mystically predicting consumers’ wants and needs, and placing a physical product or “new edition” in front of consumers – “wowing” them into realizing a true or fictitious want or need.  As it were, positioning is SO much more than simply how a product or service looks, feels, smells, performs, etc.

Positioning is how you are viewed through the mind (not merely the eyes) of a prospect. It is securing a meaningful position in that prospect’s mind. To solidify this position, you must find a way to effectively communicate value. Your company or brand should be directly associated the particular product or service you offer.  For example, when I think of energy drinks, I think of Red Bull.  Why? Because it gives you wings.

You might be asking: What is the key to making an impact on my customer? How do I truly communicate effectively to win a position in my customers’ minds? Remarkably, the answer is at the core of Phoneworx’ business strategy.  The answer is SIMPLIFICATION.

With longer working hours and shorter attention spans, it is important to provide a simple, straightforward message to your target customer. Define your ideal customer and speak directly to them.  Take away all the bells, whistles, glitz, and glamour that are getting in the way of your message, and be mindful of the fact that the human brain can only absorb so much at one time. 

So, what are your next steps?

First, simplify your message – in fact, oversimplify it!

Next, make sure you communicate what makes you different, better, special, etc. 

-          Is it that you make things simple (as we do at Phoneworx)?

-          Is it that you make the premium product within your industry (like Haagen Dazs or Rolex)?

-          Or is it simply that you provide a service above-and-beyond your competition (like Best Buy’s Geek Squad, Costco’s lenient return policy, or Bed, Bath & Beyond’s customer-friendly wedding registry)?

Finally, don’t cast your net too far – find your niche market customers and cater your message to them.   Don’t waste valuable time or money on individuals who only might want or need your product – spend it on individuals who most certainly do! Think about your message from the receiver’s point of view. Make sure it’s something they will hear – validate their opinions and needs – then assure them you can help.

Are you positioned to win your market?

-         Megan