Top 7 Mistakes Dealerships Make When Buying Phone Systems Or why mixing your IT and phone technology can cost you big time With Phillip Sherman, CEO of Telecom Advisors Group Moderated by Mike Bowers, Executive Editor of DealersEdge
Phillip A. Sherman - President/CEO, Telecom Advisors Group, Inc Phillip has been a telecommunications professional since his first position with Harris Corporation in 1971. Since then, Phillip has held positions and acted as an independent consultant with firms such as United Technologies, Walker Communications, Western Union, Wiltel Telecom Corp., Inter-tel, Union Bank, California Microwave, DataProducts and Bechtel Corporation. Phillip has been a frequent speaker for The North American Telephone Association and continues to be active in industry trade shows and corporate speaking engagements. He's a published author with numerous articles involving various facets of the telecommunications industry.
The Top 7 Mistakes Dealerships Make When Buying Phone Systems Or Why mixing your IT and phone technology can cost you big time
Speaker Background Active in Telecom Industry since 1971 Founder of four Telecom firms Published author of various articles Created Telecom Advisors Group, Inc. in 1996 to advise dealerships in matters relating to telecom technology and services.
So much confusion
and to make matters worse
Let s see how it got so crazy
Telecom Confusion Data Network Accessories Basic Communications Bandwidth Twisted Pair Fiber Co Axial Cat V/VI Business Communications Requirements
The telecom solution that works for one dealership may be totally wrong for another.the solution should adapt to the store, not the other way around
Once you announce that you re looking for a new telecom system, you ll be busy Every telecom salesperson s solution will be perfect for your dealership
Don t listen to the vendors that tell you that VoIP is the only way to go..it s not
New Telecom System Pricing $1,200.00 $1,000.00 $800.00 $600.00 $400.00 50 stations 100 stations 200 stations $200.00 $- 1985 1995 2005 2010 Average price per station or endpoint
System Upgrade Pricing $800.00 $700.00 $600.00 $500.00 $400.00 $300.00 $200.00 $100.00 $- 1985 1995 2005 2010 50 stations 100 stations 200 stations Average price per station or endpoint
Traditional TDM PBX vs. Voice over IP (VoIP) PBX Extensions/ Routing Tables Switching functions Call Controller Gatekeeper Gateway Benefits of VoIP include the elimination of duplicate cabling and the possibility of reduced monthly costs
Traditional connectivity for dealerships with multiple locations Store #1 Body Shop Store #2 Remote locations are connected via mileage-based point-to-point T-1 circuits
VoIP configuration for dealerships with multiple locations Store #1 Body Shop Carrier s Network Store #2 Eliminate LD Charges and provide intercom dialing between locations.
Mistake #7 Expecting that Voice over IP (VoIP) Call Quality will be as good as your old land line call quality
Call Quality vs. VoIP/SIP It s all about Bandwidth Land Line POTS Land Line POTS Land Line POTS VoIP/SIP VoIP/SIP VoIP/SIP
Mistake #6 Not holding on to at least a small number of Analog Trunks just in case
When upgrading to VoIP, keep a few analog lines VoIP/SIP NO Land Line (POTS) Network VoIP/SIP Network Land Line (POTS)
Mistake #5 Assuming that the existing network cable infrastructure will work with the new VoIP system
Before you start a search for a new system, verify with your IT department that your network cabling is CAT 5e or better VoIP/SIP CAT 3 Cable VoIP/SIP CAT 5e Cable VoIP/SIP CAT 6 Cable
Mistake #4 Buying new technology too late
Make sure any products or services you re evaluating aren t obsolete at time of purchase = = =
Mistake #3 Buying new technology too early
Make sure any products you re evaluating have been on the market long enough to ensure trouble free operation + = The Piggly Wiggly grocery chain with over fifty locations throughout Texas was the first to install the Cisco Call Manager in a multi-location environment. The result was catastrophic.
Mistake #2 Not performing a Billing Audit prior to the installation of the new system
Before you begin your search for a new system, perform a billing audit to eliminate unwanted lines and to decrease cost Existing Yearly Expense Proposed Yearly Expense Proposed Yearly Savings $140,000.00 $120,000.00 $122,675.28 $100,000.00 $80,000.00 $74,327.28 $60,000.00 $48,348.00 $40,000.00 $20,000.00 $0.00 Riverview Mercedes-Benz
Mistake #1 Not developing a specific list of system requirements and specifications with which all bidding vendors MUST comply
Develop a list of system specifications, requirements and minimum terms for each bidding vendor to receive = This is an absolute MUST to ensure all vendors are bidding to the same size and configuration
Some other, less critical mistakes Not having a back-up Internet connection Buying a VoIP system without SIP interface Not allowing for growth of stations or trunking Not buying a system that s compatible with your other technologies Not coordinating the dealership dialing plan with the new system install Signing a long term maintenance agreement when buying the system
Tips when buying VoIP Systems Know going into the process WHY you are looking at VoIP. Know going in if your internal IT staff will be making programming changes on the new system and therefore require some training. Don t necessarily buy the least expensive system. Explore all the options and concentrate on the longevity of the equipment vendor. DON T BUY USED! Use trusted brands.don t buy systems that are generic in nature and built on White Box server design.
How to start the process Gather and copy all telecom related billing Survey all managers for input of needed features Identify the vendors that will receive bid document Interview vendors and check references Conduct staff and manager meetings Make vendor selection
Questions? 480-632-2085 phillip@telecom-advisors.com www.telecom-advisors.com