10 Ways to Reduce Small Business

10 Ways to Reduce

Small Business Long Distance Costs

(U.S. Audience)

Intro:

Choosing the best calling plan for your small business is an important task. Every penny saved on long distance can be applied elsewhere to your business operation.

Do you dread the thought of switching your small business long distance because of past bad experiences or confusion over how to choose the best calling plan?

The following are tips on how to choose the best small business phone plan for your business:

1. Read the Small Print: Don't be focused on the per minute rate and ignore the hidden fees in the fine print. Read the small print if you come across something you don't understand, ask what it means and don't stop asking until you get an answer.

2. Term Contract: In 98% of the cases, you should not sign any type of contract which will lock you into a specific calling plan for any length of time.

The exception to this would be if you have a large business set up on a T-1 or if you spend thousands of dollars a month in small business long distance. In this situation you might be asked to sign a contract to receive a rate of a few cents per minute. If you do sign a contract, be aware of what your penalty will be to terminate the contract early. Most likely, it will cost you thousands of dollars to terminate the contract.

3. Rate Increases: Do not sign a term contract to "lock in", unless you are on a T-1 or spending thousands of dollars a month, you should be able to get a permanent locked in rate without having to sign a contract. Many reputable small business long distance carriers will do everything they can to keep you at the same rate you had when you signed up even if they have a rate increase later, all without you signing a term commitment.

4. Monthly Minimums: Having a monthly minimum to receive a low per minute rate is no problem unless you don't meet that minimum every month. If your plan has a $100.00 monthly minimum and your small business long distance bill is only $75.00, you will still be billed $100.00 for that month.

5. Toll-Free Numbers: A toll-free number for your business is a smart business decision. It invites existing and potential customers to call you at no cost to them. Learn if your incoming per minute rate on the toll free is higher than your outgoing rate. Check to see what the charge will be for someone calling you from a payphone and what the billing increments will be for incoming calls. If you currently have a toll free number, you will be asked to fill out a "Responsible Organization" form that will give your current small business long distance carrier instructions to release your toll free number to your new carrier.

6. Billing Increments: The billing for a good business-calling plan should be in 6-second increments. This means if your call is 18 seconds long, you will be billed for only 18 seconds. If your call is 19 seconds, you are billed for 24 seconds. If you have one minute billing increments your 18 second call will be billed for a 1-minute call. This little difference can add up over time, especially if you make numerous calls a month or fax a lot.

Money-Saving Phone Tips

7. PICC: PICC (Pre-subscribed Interexchange Carrier Charge) is a Federally mandated charge that every business line customer must pay based on the number of and types of phone lines. The PICC varies between carriers but in no circumstance should you pay more than $4.50 per line.

8. USF Fee: USF (Universal Service Fund) is a fee on certain long distance services to offset a company's mandatory payment into the Federal Universal Service Fund. You will be charged a USF fee on state-to-state and international calls only. A small business long distance carrier cannot legally charge a USF fee on your in-state long distance calls. The USF fee varies between long distance carriers but in no circumstance should you pay more than 10% for the USF. Read more about the USF at the FCC website.

9. Calling Cards: If you or your staff will be using a calling card, make sure you know what the per minute rate is and what the charge is for using the calling card from a payphone. If there is a connection charge for the card it will apply for any call that connects even to a pager, cell phone, voice mail, etc.

When giving cards to employees, it's a good idea to use the calling card issued to you from your small business long distance carrier and not use a pre-paid card. Using a pre-paid card will not provide you with a paper statement to see when the card was used and whether the card was used for business purposes.

10. International Business Calls: Call a land-line phone instead of calling to a cell phone. Overseas carriers have been increasing the charge to call a mobile device and then passing on the rate increase to the carriers in the United States.

The per minute rate to an international mobile device can be 3 to 4 times higher than calling to a land-line phone. These International/Special Services charges can apply to overseas calls to pagers and military bases. If you make only a few international calls a month and your long distance plan has a high international rate, consider using a dial around number (10-10 number).

Have complaints? Mistakes can happen occasionally, even with the best local and long distance phone service providers. Immediately contact the carrier and report any problem. In some situations, you will have to contact your local phone provider. If you have gone through every channel possible and your problem is still not resolved, there are agencies where you can file a formal complaint.

When it's time for your business to switch long distance, take the time to compare various carrier plans and don't allow any salesperson talk you into something that you don't need. A good rep will want to make sure you understand everything about the calling plan you are considering, so ask questions and expect satisfactory answers.

For more information:

Tel: +44 (0)1872 865305 or +44 (0)78 1234 3354