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Monday 22 February 2010

Free phone system offers, deal or no deal?

You're sitting there deeply involved in what you're doing, be it an urgent report, fire-fighting someone elses cock-up or updating Twitter; when suddenly you get a call from an assertive young person promising all the telephone systems you can eat for FREE!

You are understandably sceptical, however, you've had the existing phone system for a number of years and, hell, if you can bag a deal like this then you will be a star, right? Well, maybe?

We're all business people so let's think about this logically for a moment.

Take a product or service that you provide. Good isn't it? Now, if this is a physical product or your professional time then that carries a tangable cost, right? Now give that to someone, for nothing, and consider the obvious consequences.

Firstly, no business in the world has ever succeeded in just giving stuff away for nothing, there has to be an income stream to cover the costs. So, you will be paying for the phone system, just not as explciitly as handing over a cheque. It will be built in to an extended service/rental agreement, which is in itself a dressed-up leasing document, tying you in for up to 7 years of inflated 'rentals'. At the end of which you will not even own the equipment!

Secondly, the company 'giving away' the phone system is not a telecoms company at heart, they are a finance house using telephone systems as a vehicle for the finance. How do you think the support and maintenance will shape up? If they have no investment in the phone system then this will directly impact on the level of service you receive.

Lastly, ALWAYS talk to your incumbent supplier who should be able to advise you on upgrade options that may not even involve a new phone system, just some new software or part-upgrade.

We have been unfortunate enough to uncover deals where a business has signed up to a 'free' phone system worth approximately £2500 installed, only to be locked in to a horrible finance arrangement resulting in the business paying over £14000 for the phone system. This is not uncommon.

Sometimes, free can mean free, just look at the detail.

The rule of thumb is that as long as the supplier qualifies the freeness of the free then you can feel more comfortable and understand the deal on face value.

For example, Extel will replace your old phone system with a new upgrade free of charge. The conditions of the offer are simple. You will let us dispose of your old system under WEEE regulations (helps toward carbon reduction), and the purchase the system cards and handsets from us. Easy.

So, free can mean free, it's just how free that's important.

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