Saving You Money

Tens of thousands of dollars of savings in your bank account

Key Points:

Lancom will start straight away with a review of your vendor contracts
Experience has shown there can be tens of thousands of dollars of savings to be made
Most IT companies don’t do this because their “Reseller IT” model is focussed on selling you more IT
Lancom will always look at what can be done for you before we look at what can be sold to you.

Lancom has been able to quickly save new customers tens of thousands of dollars in unnecessary spending and we would like to do that for you. You are probably paying too much for your data, printer, telephony, Telco, and mobile contracts. This is one of the first things we put right for our new customers. We can do this because we know what other people are paying in the market and have the time and expertise to run a proper procurement process.

A $46,000 problem solved for $0 because Lancom looks what can be done rather than what can be sold.

These savings are real “money that doesn’t leave your bank account” savings that your accountant loves. More than once we have saved more than our monthly management fee from vendor contract reviews.

It is no secret that the account managers at Telecom, Gen-i, Vodafone, Ricoh, Cardy Minolta, and Xerox are all incentivised for revenue. Their approach is a trading one, deal by deal, where they are incentivised to squeeze the maximum amount from you out of every deal. So there’s plenty on the table if you know how to negotiate and understand what is being sold.

The problem is that there is very little interest from the typical Reseller IT in managing your vendor contracts properly. Unhelpfully there is often far more interest (and revenue for Reseller IT) from selling you extras to ‘optimise’ the poor deal you came away with. The Reseller IT account manager makes more money selling you a WAN optimiser for an overpriced/under specified WAN than getting a properly specified WAN at a competitive rate (we have a great example below).

We can quickly find the savings that Reseller IT has overlooked simply because Professional IT is looking at what can be done –with or without a sale occurring – where Reseller IT is looking for what can be sold. It’s a small sentence but a major difference in bias and huge difference in savings and project success.

Some current wins:

Saved a customer 30k on the purchase price of a telephony system
Saved customer A $1500 per month after reviewing their printing contract
Saved customer B $2000 per month after reviewing their printing contract
Saved customer C $10000 per month on their Telco bill
Saved customer D $10000 on their Telco bill

A second way we save money is our engineering over sales bias. There is no ‘deal filter’ on expertise and if there is a ‘flick the switch’ solution we will implement that before we sell you anything.

We can find the savings that Reseller IT has overlooked.

A great example of this came to us this year and it was a $46,000 per annum saving. A new customer had a saturated WAN link to Wellington. The Telco who provided the link, performed a traffic analysis and offered to sell a $3,000 per month upgrade to fix the problem. The incumbent Reseller IT offered to sell a WAN optimiser for $26,000. A third party reseller offered to sell a cheaper WAN optimiser for only $12,000.

Fortunately we were on board before anything was bought (and sold). We read the original report and found the singular cause of congestion was a large backup that started in the middle of the night but ran through the day. We investigated the reason for the backup and found that it was only a ‘convenience’ for the Line of business software vendor and he was happy to do without it.

A $46,000 per annum problem solved for $0 because Lancom looks first at what can be done before they look to what can be sold. Reseller IT works in the opposite direction.

Our solution has savings of $46000 per annum on the original Telecom plan.