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Let’s think about mobile equipment more strategically, shall we? If you’re working in an organization using hundreds (or thousands) of mobile phones and tablets then rest assured the accounting department is paying thousands of dollars to the cellular provider. One of the hidden costs that is often overlooked is equipment installment payments. iphones are not cheap. Today’s going rate for the iphone 17 Pro Max is $1,299.00. All of the major carriers (AT&T, T Mobile, Verizon) are in cahoots with Apple and Android. Together, the carriers and manufacturers have turned equipment acquisition into something resembling automobile leasing. Don’t worry about paying for your equipment in one shot. Take advantage of the ‘purchase installment plan’ which divides payments over the life of the contract. Fortunately, the carriers are not charging interest (yet) for these payment arrangements. However, if your organization believes its staff should have late model or new devices then the deck gets financially stacked against you. Here’s a few reasons why: 1. Increased capital cost – do the math. If corporate is paying off mobile phones worth $1,200.00 each and you have even 100 users then A/P is saddled with $120,000.00 in equipment payments. Perhaps there are other areas your business would rather spend $120k??? 2. Contract restrictions – So, if your organization is stuck paying off equipment then your service options decrease as well. If you’re looking to change product or you need to downsize some staff then you could be left paying off equipment no one is using. That’s a loss and it’s taking away profit. Further, if you need to make a major change then it’s probably going to be cost prohibitive until the company gets closer to the end of its service agreement. If the end date is years away then you’re probably financially stuck. 3. Lack of value – mobile phone values always tumble. Last year’s model is ancient history and your accounting team is still paying for something that is 50-75% lower in value just one year later. There’s a way out . . . Stop the crazy!! Obviously, if your people need a corporate cell phone then ask yourself, “what are we using these for?” The answers will probably (only) include: • basic communication • texting • using a company app out in the field • work voicemail If your list matches mine then guess what? You can do all of these functions very well with an iphone 14. Do your users need the latest camera and the latest processor speed? Probably not. The answer is pretty simple. Tell your staff to take care of their company phones and use them for just a few more years. No one is going to fall apart. Company calls will still get answered and work will still get done. The best part? Over two contract terms (6 years) you could save over $100,000.00 on capital costs for just 100 users. If that’s not exciting then just give me the money. I’ll take it. In the meantime, if you have any questions or feel you need help for your company or a fellow client contact us today. We have the resources and experience to help you save a ton of money with very little work on your part. |
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Contact RAM Today! 847-358-0917 info@ramcomminc.com |