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Analyzing The True Cost Of Free Headsets

Posted By: Adolph K. Reekie | Posted On: 2008-06-13 | Article ID: 68134

Within the last several years, the headset industry has contracted from several major manufacturers to basically only two viable competitors in the marketplace. Throughout this era of merger, acquisition and attrition, the value of special programs offered to the headset customer has become increasingly more important in each manufacturer maintaining a competitive advantage in the industry.
Programs that offer one "free" unit with each and every purchase of a pre-determined number of headsets is one program that benefits the customers prepared to order at or above the minimum level.
While at initial glance a perk of this nature may be viewed as a National Account partner as having tremendous value in cost savings, a closer investigation into this cookie-cutter offer may reveal a program that is more advantageous to the manufacturer than to the customer.
The first consideration is a National Account's willingness to commit that every order placed will be of a certain size in order to receive the free unit. In analyzing current level of purchases from most companies using headsets and projecting a potential number of orders received from company facilities over the life of an agreement, it is unlikely all orders would meet the minimums of receiving free product with every order or for every headset category. (a Buy 10, Get 1 Free is a popular program but for corded headsets only). In the event that many orders would not qualify, would offices delay procuring headsets for employees in need of hands-free communications to allow enough time for 10 or more people to be prepared to order? Would some offices be pressured to increase the size of their orders as to not "miss out" on some perceived benefit?
If a company were given the option of batching orders to maximize the amount of free units earned, which locations would benefit from the free unit? If those orders contained a variety of headset styles and compatible amplifiers, what free unit would the company receive? Finally, who will be responsible for administering this program and managing the logistics of this product allocation and how it is accounted for?
Most National Accounts standardize on a headset manufacturer and a distributor to realize tangible cost-savings initiatives. Unfortunately, this free product program is often more flash than substance as it relates to the bottom line.
Many times Corporate Purchasing Departments discover excess headset inventories stockpiled in supply closets and equipment rooms earned through these types of programs. As technologies or telephone equipment changes, many times these products are of little or no value to the customer. At this point the negotiated contract price for procuring headsets seems to fly in face of fiscal responsibility.
Be sure you can negotiate to insure that you are getting the full benefit of these programs before contracts and purchasing agreements are complete. Involve the headset manufacturer and you will feel that you have the best value and program available in the market today.

 

Article Source: http://www.articlecell.com

About The Author
Adolph K. Reekie
To compare rates on International Calling Cards, please visit our Calling Cards Store at xphonecards.com



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