Savvy Telecom Contract Negotiations & RFP Technique #3 – Save The Date
How do you know when it is time for a new contract, or to contemplate moving your services to someone else? Don’t rely on a rough date. Know your contract.
Many contracts have automatic renewals or specific procedures that must be followed to prevent auto renewal. Some take it for granted that dates negotiated on their last RFP made it into the contract, this is often not so. Always check your contracts and know the procedures, dates, and revenue commitments agreed upon.
Some jump the gun and turn the incumbent provider into an enemy before knowing the particulars of how to discontinue their agreement. It is also important to consider the time and resources necessary to move to another provider. Know your dates and plan in advance. Staying one step ahead of your providers will help you to negotiate the best deals.
Hi. I am a long time reader. I wanted to say that I like your blog and the layout.
Peter Quinn
The default position with all network service providers is when contracts either expire or auto-renew that it’s the customer’s responsibility to know the terms. We see ‘evergreen’ contracts rollover for 2 or 3 years, complete with full penalty terms remaining in place. Other times they simply expire without warning and billing can jump up at least a factor of 2. In both cases this costs the client money and/or limits their options.
We strongly recommend customers have a central electronic storage location for all fully executed copies of contracts. Also, some kind of tracking tool, even a simple spreadsheet is essential in heading off issues before they occur.