Do any of you guys offer maintenance contracts? I think this is something I would like to look into.. But I have no idea where to start. Any advice would be appreciated.
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Maintenance Contracts? 1
- Thread starter silver987
- Start date
Johnthephoneguy
Technical User
I have seen manintenance contracts set up differently in different places.
Some offer a blanket support for xxx.xx per month.
Some offer x amount of hours use or lose each month for xxx.xx.
some offer just time and material.
The price and level of support depends on what you and the customer agree is in best interest of both parties.
JohnThePhoneGuy
"If I can't fix it, it's not broke!
Some offer a blanket support for xxx.xx per month.
Some offer x amount of hours use or lose each month for xxx.xx.
some offer just time and material.
The price and level of support depends on what you and the customer agree is in best interest of both parties.
JohnThePhoneGuy
"If I can't fix it, it's not broke!
Deweyhumbolt
Technical User
I believe a maintanence contract on Norstar's to be a rip off of the customer. Norstars are bullet-proof. T&M is the best way, for multiple reasons. The one exception is the big national company, that wants you to cover their local office. They have more piece of mind, knowing you'll fix it, no matter what and show up within a 2 hour window.
Adversity is Opportunity
Adversity is Opportunity
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- Thread starter
- #4
I guess if all you offered was repair maintenance it would be. But what if you offered free s/w upgrades along with maint. Also could offer free back-up and remote changes. I have a few customers who could use remote help. I give that for n/c right now, shouldent I get paid for my time as well?
Deweyhumbolt
Technical User
I did have a $35.00 a month fee, for ALL FREE REMOTE WORK. Small enough where nobody cared and less than the yearly 1099 limit of $600.00. But out of about 12 companies that bought in, only 3 systimatically emailed all changes to me. I felt bad stealing there $35.00, and them having the NEW GUY/GAL make the changes onsite.
I gave the biz to my colleague still in So Cal. His ethics are less stringent. lol.
Adversity is Opportunity
I gave the biz to my colleague still in So Cal. His ethics are less stringent. lol.
Adversity is Opportunity
Johnthephoneguy
Technical User
If you included free software upgrades that is a plus, but again it depends on what is best for you and the company. I know we rarely if ever upgrade software on the 200+ norstars we have only because they do what we need them to do without it. The occasional upgrade is to get rid of CO trunks and bring in a PRI or something. So for the company i work for that wouldn't be a big sell, but for another company it might be.
You should get paid for your time, even if it is a minimal amount like Dewey charged. Thats along the line of x amount of hours per month for x amount of dollars. I wouldn't make it an unlimited amount myself, i would give the customer the choice, 2 hours remote time for this amount, 5 hours 10 hours etc and let them pick whats best for them, with an additional charge of x over that amount of time.
JohnThePhoneGuy
"If I can't fix it, it's not broke!
You should get paid for your time, even if it is a minimal amount like Dewey charged. Thats along the line of x amount of hours per month for x amount of dollars. I wouldn't make it an unlimited amount myself, i would give the customer the choice, 2 hours remote time for this amount, 5 hours 10 hours etc and let them pick whats best for them, with an additional charge of x over that amount of time.
JohnThePhoneGuy
"If I can't fix it, it's not broke!
RikRodgers
Vendor
We tried out service contracts about 8 years ago, but like Dewey, it ended up being a rip off.
The customers that make use of it ended up calling us every time someone wanted to change the greeting on their personal mailbox.
We discontinued the Maintenence contracts. I give simple tech support on my cell at no charge, but if it gets too elaborate, we charge $40 to walk them through it, or $50 to go to the site and do it for them.
The customers that make use of it ended up calling us every time someone wanted to change the greeting on their personal mailbox.
We discontinued the Maintenence contracts. I give simple tech support on my cell at no charge, but if it gets too elaborate, we charge $40 to walk them through it, or $50 to go to the site and do it for them.
DoctorDia1tone
Vendor
- Jan 14, 2005
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In my neck of the woods, we offer maintenenace contacts based upon - mostly - a per port monthly charge - with or without set replacement - and another charge for the Voice Mail. Usually a factor of 10 ports per one voice mail port. In other words one voice mail port = 10 station/trunk ports. T1's are more.(Longer to resolve)
There are other variables such as 9-5 or 24/7 coverage.
Acts of God and Changes are never covered (Lightning, Power Fail, Surges, Change Password, etc.)
Telco related issues may not be covered. (Not our fault)
There are also formulas for 8% to 15% of the replacement cost of the equipment for an annual charge.
For Key Systems, it's expensive, but for a larger system, it's insurance against a major outage.
A company can also guarantee response times with a contract. (SLA for Service Level Agreement)
2 Hr for down system
4 hour for more than 10% outage
16 hour for routine service.
The rule of thumb is .... If something is sitting there working and stops working - it's covered. IF Homer throws the phone or spills his smoothie in there - it's not.
If you thought you'd like to program and screw it up - not covered, etc.
We use between $3 and $5 per station / trunk port. Less ports = more expensive per port.
A company can't make a lot of money on a few contracts. It can only make money on shared risk - and a lot of customers under contract....like real insurance.
YMMV, See Offer for Details, Offer Not Valid in Alaska and Tennessee, Must be 18 to Play.
Rick Williams "Doctor Dialtone"
There are other variables such as 9-5 or 24/7 coverage.
Acts of God and Changes are never covered (Lightning, Power Fail, Surges, Change Password, etc.)
Telco related issues may not be covered. (Not our fault)
There are also formulas for 8% to 15% of the replacement cost of the equipment for an annual charge.
For Key Systems, it's expensive, but for a larger system, it's insurance against a major outage.
A company can also guarantee response times with a contract. (SLA for Service Level Agreement)
2 Hr for down system
4 hour for more than 10% outage
16 hour for routine service.
The rule of thumb is .... If something is sitting there working and stops working - it's covered. IF Homer throws the phone or spills his smoothie in there - it's not.
If you thought you'd like to program and screw it up - not covered, etc.
We use between $3 and $5 per station / trunk port. Less ports = more expensive per port.
A company can't make a lot of money on a few contracts. It can only make money on shared risk - and a lot of customers under contract....like real insurance.
YMMV, See Offer for Details, Offer Not Valid in Alaska and Tennessee, Must be 18 to Play.
Rick Williams "Doctor Dialtone"
RikRodgers
Vendor
One thing to note- We usually offer a 2 year warranty on all equipment installed. (Twice the normal mfg warranty, but we rarely have any issues.) That factors in to the cost effectivness of a service contract, but the larger the company, the more they'll want a contract, anyway.
curlycord
Programmer
We charge for the most part by the port, module, ksu, vmail.
Contracts are good for both the customer and the vendor.
It is a form of insurnance and I strongly disgree where "we are ripping off the customer".
Mr customer,
Here is what we offer
This amount of money for your ports, ksu and modules etc and includes:
2 hr emergency response
24 hr repair
Discounted hourly rate
No charge on labour for faulty items
No charge on labor if Telco is at fault (some vendors offer this too).
Remote MACs under half hour are free (or discounted from normal remote rate.
Free patch work for BCM's (not/never software upgrades)
Take it or leave it and if you do take it dont think we are ripping you off.
I find most of the big customer almost demand a contract.
Otherwise "why did you charge us this, "what is this item?", "your tech wasnt here that long", "You charged us for travel?", "you said it would only cost this much" etc.
Often I get calls from potential new customers and the first thing they ask is "do you offer contracts?"
I mean $300 bucks is the average for a 3X8, and include the above perks? thats not a bad deal for a year.
Cheers
Contracts are good for both the customer and the vendor.
It is a form of insurnance and I strongly disgree where "we are ripping off the customer".
Mr customer,
Here is what we offer
This amount of money for your ports, ksu and modules etc and includes:
2 hr emergency response
24 hr repair
Discounted hourly rate
No charge on labour for faulty items
No charge on labor if Telco is at fault (some vendors offer this too).
Remote MACs under half hour are free (or discounted from normal remote rate.
Free patch work for BCM's (not/never software upgrades)
Take it or leave it and if you do take it dont think we are ripping you off.
I find most of the big customer almost demand a contract.
Otherwise "why did you charge us this, "what is this item?", "your tech wasnt here that long", "You charged us for travel?", "you said it would only cost this much" etc.
Often I get calls from potential new customers and the first thing they ask is "do you offer contracts?"
I mean $300 bucks is the average for a 3X8, and include the above perks? thats not a bad deal for a year.
Cheers
Deweyhumbolt
Technical User
The math is pretty simple. Is Joe Customer going to pay you more in a maintanence contract in a year, then in T&M, to fix hardware issues? The answer in SoCal was a resounding, Yes! After the first year of initial warranty, Joe Customer knows this too.
We still make money on T&M, software upgrades, and on Telco (not our fault). The only hardware that would most likely go bad is a telephone they spilled something on, and maint. wasn't covering it anyway.
Always believed in making an honest buck.
Adversity is Opportunity
We still make money on T&M, software upgrades, and on Telco (not our fault). The only hardware that would most likely go bad is a telephone they spilled something on, and maint. wasn't covering it anyway.
Always believed in making an honest buck.
Adversity is Opportunity
curlycord
Programmer
Always believed in making an honest buck."
Gee I sure hope you are not thinking the rest of us are dishonest!
We offer it, we tell them what it includes and nobody is forcing them to buy it.
Will Joe pay more in most case's? of course he will, thats the whole idea of the insurance.
If we charge them for the contract and we have a system failure and need to replace the part then we loose too, it's a gamble for both parties.
And to say just a phone with spillage is the only repair is nonsense or we wouldnt have voice mail and systems down and replacements every week and have to employe 10 people in our lab constantly fixing this stuff, replacing hard drives, internal power supplies, caps etc. etc.
When you say Norstar is bullet proof I also disgree.
Norstar is the number one system that goes through our refurb department.
Avaya, NEC, Mitel, Panasonic....these are the ones that have heavy armour.
Maybe because they are not made here lol
Btw....do you have house insurnance? do you know what the odds are of your house burning down?.
Cheers : )
cc
Gee I sure hope you are not thinking the rest of us are dishonest!
We offer it, we tell them what it includes and nobody is forcing them to buy it.
Will Joe pay more in most case's? of course he will, thats the whole idea of the insurance.
If we charge them for the contract and we have a system failure and need to replace the part then we loose too, it's a gamble for both parties.
And to say just a phone with spillage is the only repair is nonsense or we wouldnt have voice mail and systems down and replacements every week and have to employe 10 people in our lab constantly fixing this stuff, replacing hard drives, internal power supplies, caps etc. etc.
When you say Norstar is bullet proof I also disgree.
Norstar is the number one system that goes through our refurb department.
Avaya, NEC, Mitel, Panasonic....these are the ones that have heavy armour.
Maybe because they are not made here lol
Btw....do you have house insurnance? do you know what the odds are of your house burning down?.
Cheers : )
cc
Deweyhumbolt
Technical User
Couldn't be better said, "it's a gamble for both parties".
Adversity is Opportunity
Adversity is Opportunity
Johnthephoneguy
Technical User
In a perfect world it is a win/win situation for both parties. You just have to find that middle ground and agree on it.
JohnThePhoneGuy
"If I can't fix it, it's not broke!
JohnThePhoneGuy
"If I can't fix it, it's not broke!
RikRodgers
Vendor
Sorry, curly. I don't think Dewey or I were trying to imply anything underhanded about service contracts. We both gave them a shot.
They just didn't work out for our customer base.
They just didn't work out for our customer base.
curlycord
Programmer
No apologies needed but thanks....we cant always read how it's wanted to be read anyway.
Poor Joe (the plumber)
cc
Poor Joe (the plumber)
cc
Deweyhumbolt
Technical User
Rik, couldn't have said it any better. I fully concur with his findings.
Curly, I have no doubt your customers benefit. Mine didn't.
Adversity is Opportunity
Curly, I have no doubt your customers benefit. Mine didn't.
Adversity is Opportunity
curlycord
Programmer
It all depends too on what we charge.
There is so many ways you could dream up a contract that maybe benifts both in the best way for that situation.
There is so many ways you could dream up a contract that maybe benifts both in the best way for that situation.
Deweyhumbolt
Technical User
Also, I really couldn't support a Legal Department, that could write up those varied contracts. lol
Adversity is Opportunity
Adversity is Opportunity
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