The Conference Coach™

Carolyn Bradfield

InterCall is by most measurements the world’s largest conferencing company.  In the early days they grew by showing businesses how efficient conferencing was, then they shifted to snapping up smaller conferencing companies and acquiring their customer bases   Recently, they have added revenue through rate hikes, fees and surcharges to stay even in the face of our current economic downturn.  (Think about airline baggage charges).

When you reduce customer service and account managers from companies you buy, diminish the personal touch, and raise rates, your options become limited in holding on to an increasingly dissatisfied customer base.  Enter the concept of the contract.  Contracts are often used to create the perception of obligation in return for a rate advantage.  If it were that simple, it would seem like a good idea.

However, is it really in a company’s best interest to get a rate advantage through a contact?  Let’s use the example of a company who agrees to pay InterCall $.05 per minute in return for a revenue obligation of $5,000 for 12 months.  They spend an average of $600 per month and would easily meet their obligation.

Now, let’s add back fees that they might expect on an invoice.  They want an invoice mailed, so that’s $25.00.  Their moderators like to get a post conference report, so that’s another $25 for each conference call.  There are bridging fees of 6% and miscellaneous telecom fees of another 1%.  Some of their calls are short, so they have to make up the difference to make sure that call billed $15.  If a couple of users call in, get the time wrong and start the call, that’s an expensive proposition.

Maybe those fees add another 25% in cost each month.  (I’ve seen it as high as 50%).  What is the real rate per minute now?  That contract that guarantees $.05 per minute, still guarantees the rate will not go up for 12 months.  However, the extra 25% in fees and surcharges really make that rate $.0625 – not what the company believed they were signing the contract for.

Sometimes contracts are a good thing, but in an industry that is ever-changing, with technology that consistently reduces the cost of doing business, contracts may box you in, limit your choices and give you a false sense of security.  My advice, keep your options open.

Have questions about Copper Conferencing or need to do an audio conference or web meeting?  Contact a Conference Coach today.