Smart Talk On The Phone

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Newton contends that the glossier the manufacturer's sales literature, the less useful it is. "Often the most informative brochures are those not meant for users' eyes," says Newton. Be persistent, and get all the technical literature describing a system. And ask the salesperson, or a technician from the company, what it means.

"Manufacturer literature on the subject of sizing is not especially precise or especially helpful," Newton says. "There are variations on the theme of growth. Some systems allow you to add plenty of telephones but few additional lines without a significant investment in new wiring. Some systems allow you to add plenty of lines but not many phones."

Electronic key systems (see box, page 64) often are offered, and named, in such basic configurations as "412" (4 lines, 12 phones), or "1530" (15 lines, 30 phones). The number of telephones is typically three times the number of lines.

Judging the size of PBXs, or private branch exchanges, is a little more complicated. In an electronic PBX system, calls go through a computer-controlled switching mechanism; there are limitations on the number of calls the computer and the switch can handle at once. Some calls require more work from the central processor and the computer memory than others do. For example, routing a call over an independent common carrier's network (see box, page 68) is more demanding than placing a local call. And activating special features, such as speed dialing or call forwarding, also uses more computer capacity. Newton advises making sure the PBX salesperson "can tell you how he measures the sizing of his PBX in technical terms that you can understand." Ask each vendor how his measures compare with or differ from measures that other vendors use.

Be sure to try out a system before buying it -- that is, see it in operation, and use each of its features. In particular, pay attention to how the features are activated. Each function may require a different sequence of numbers and taps of the switchhook. "It requires considerable adroitness to use some of the feature codes on single-line [PBX] sets," notes Lee Goeller, telephone consultant with Communication Resources in Haddon-field, N.J.

Another reason to test equipment carefully before buying is that there is a good chance it won't perform the way you expect. "The telephone equipment market is hotly competitive," says Goeller. "One of the unfortunate sides of that is that systems are sold before the manufacturer has had a chance to fully test them."

Daniel B. Norton, a consultant with Telephone Management Co. in Seattle, advises never to buy what he calls Model 1, Issue 1 -- one of the first 500 to 1,000 systems manufactured. "New models go through several derivations -- just like cars," he says. "They find the bugs in the first run in the field."

The rule of thumb in buying interconnect equipment is always to get the agreement in writing. What will it cost to add lines or telephones? It should say in the contract.

The exception to this rule is in dealing with the telephone company. Says Newton, "Remember that whatever you have in writing from Bell is relevant only to the extent that it conforms to the tariff filed at the local public service commission. If the tariff is different, the tariff prevails."

In acquiring interconnect equipment, some questions to ask are: How long does the manufacturer guarantee the equipment and workmanship? Typically, the installer offers one year of repair service for no extra charge. Is it brand-new equipment, or reconditioned (used)? If the system has been on the market a while, it might be the latter. If so, price concessions are in order. Is the system exactly what was ordered? Norton points out that manufacturers sometimes make changes in equipment that are not reflected in their brochures.

Daubitz warns against letting vendors use a short "boilerplate" contract. Negotiate a new contract with as much detail as possible, and review it with a lawyer. Include clauses such as penalties for lack of performance, for not responding in time to maintenance calls, or for not getting things fixed quickly. Ask for written ceilings on the escalation of maintenance fees in succeeding years. Specify who is responsible for complying with local building codes on wiring.

Also belonging in the contract are "acceptance criteria," specifying what test the system must pass before title passes to the buyer and final payment is made. Says Newton: "Check out that each phone is doing what it's meant to do, phone by phone. It's boring -- but necessary." Generally, with smaller systems, the customer pays in installments at the signing of the contract, on delivery, at "cutover," and on acceptance.

Other points to specify: If you are leasing the system, who is responsible for damage to or theft of systems components? You may want to include an arbitration provision in case of a dispute. And ask the manufacturer for a commitment to assume maintenance responsibilities in case the vendor folds.

Although experts agree that price should not be the foremost consideration, when it comes time to negotiate the contract there are ways to save. Since the retail markup is typically 80%, there is room for negotiation. Newton advises letting each vendor know which others are being considered to see what they will offer to sweeten the deal. Prices aren't necessarily set according to the suppliers' costs.Rather, they tend to vary according to the cost of similar Bell equipment.

Another way to save is to contract independently for installation of wiring. This can be done even with Bell equipment. Often an interconnect company will be quite happy with such an arrangement, since the industry is chronically short of skilled help. But if you make a mistake, you can't blame the vendor.

When buying interconnect equipment, remember that you are still tied to the local phone company and must now think about coordinating your equipment with its lines. This starts right away. The phone company has to work closely with your installer in hooking things together and cutting over. Says Newton: "Expect the phone company to be late and to miss several installation dates."

After the warranty period, expect to spend $3 to $7 per month per phone for maintenance, according to Newton. "If you find a particularly competent repairman," he counsels, "cherish him, tip him, remember him at Christmas, feed him coffee and doughnuts, and beg for his home phone number."

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