It may seem that wireless expense management companies are unnecessary. However, wireless capacity in business is an immensely dynamic cost center — one that can be remarkably difficult for businesses to control with any efficacy. There are multitudinous factors that impact wireless costs, including rapidly evolving vendor plans that change with the wind, departments and employees that consistently change devices and phones. Additionally, a plan that is initially ideal for a particular company may quickly become obsolete, based on a shift in usage plans. Another major influence in the difficulty in managing the costs associated with wireless capacity is the fact that errors in billing are currently rampant. Even when these errors are eventually rectified, they have a way of easing their way back into invoices.
When it comes to using wireless expense management companies to help manage wireless costs, the vast majority will use a straightforward approach that consists of individual invoice auditing and the optimization of the service plan that the company uses. In situations in which this straightforward approach is executed effectively, it can produce immediate savings of as much as 15 percent. Once this is accomplished, wireless expense management companies move on to the next client.
The more effective wireless expense management companies take a more complex and comprehensive approach, understanding that cost management is not a one-time event, but an ongoing process.
What Is a Wireless Expense Management Company?
The phrase “wireless expense management” is a term used to describe companies that specialize in helping businesses manage the costs associated with the wireless usage dynamic that can be such a problematic issue for companies. The numerous factors that make wireless such an enigmatic issue has the ability to cause companies to literally hemorrhage money unnecessarily. These companies use a number of different cost management models to help their clients realize savings associated with their wireless program.
Some of these expense management companies are highly rudimentary in their approach, which can still produce significant results when carried out with discipline, and others use more comprehensive mechanisms that tend to produce long-term results.
Companies that Benefit from Wireless Expense Management Companies
With the rapid advance of technology, the number of companies that will benefit from the assistance of a wireless expense management company is growing exponentially. If a company is making significant use of wireless mechanisms to communicate, collaborate and deliver its services, it is likely that the company will benefit from contracting the services of a wireless expense management company.
Due to the fact that there are so many factors that are consistently evolving, it is extremely impossible for the average small to mid-sized business to keep up with all of the pitfalls associated with wireless usage. By bringing in experts, the company will benefits from a more streamlined and dedicated approach to minimizing wireless-related costs.
The Usual Cost of Hiring Wireless Expense Management Companies
This particular topic is of immense concern, because there is no true standard matrix that can provide standardized pricing for the services rendered by a wireless cost management firm. Currently, pricing is based on a number of variables that include experience, reputation and services rendered.
While there are a handful of wireless expense management companies that provide services in the three figure range, the most well-established firms will charge anywhere from low four-figure to high five-figure fees depending on the size of the company being served and the extent of their wireless usage — which impacts the potential of the savings.
4 Ways by which Wireless Spending Can Be Reduced
There are a number of ways that these cost management firms can immediately impact the spending of a company, as well as create long-term savings.
1. Audit Check
Audits can be used in a number of ways to produce savings in wireless usage. Audits can be done to address actually charges and well nominal fees. When these audits are conducted correctly, they will review each charge on a monthly basis, looking for inconsistencies in the billing that cannot be explained. Reviewing the charges on a monthly basis will also allow the firm to ensure that all negotiated discounts, credits, waivers and tariffs are being billed accordingly. It is not uncommon for wireless vendors to count on the inability of businesses to catch slight variations across these verticals. This is the job of the cost management firm.
2. Duplicate Charges
Another area in which consistent auditing will help to reduce unnecessary costs is by identifying duplicate charges. The cost management firm should look for duplicate charges on single invoices, as well as charges that occur across the month. Simply checking one invoice may not show where a client has been billed for the same service or feature more than once in a billing cycle — checking across the entire month will eliminate this issue.
3. Early Termination Fees
When it comes to a company that has a large number of devices under contract, it is likely that some of those devices will be terminated prior to the contract expiring. While it is next to impossible for individual wireless customers to avoid the early termination or cancellation fees, businesses that are viewed as high-volume customers have much more leverage by which to negotiate. A cost management firm will be able to negotiate with the vendor to remove some or all of the early termination fees.
4. One-time Billing Errors
Unlike billing errors are unlike consistent fee errors that should eventually be caught and reconciled. A one-time billing error, if not caught, will likely never be reconciled in the favor of the business owner. This is another area in which the cost management firm will earn the fee. It will require the ability to conduct retro-auditing services that go back a specified period of time.
In a market in which competition is immensely high, and profit margins are thinner than ever, it is of the utmost importance for companies to manage all of their expenditures. With wireless being such a convoluted dynamic, the use of wireless cost management firms is almost a requirement for a company of any significant size. Wireless is a part of the long-term business landscape, and how well businesses are able to manage their wireless cost will determine how well they will be able to compete based on profit.
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