Oct 1, 1991

Phone Systems

 

While virtually any system can accommodate intercoms and speakerphones, you will have to buy phones with mikes and speakers. These will add $20 to $60 to each set.

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Toll restriction This circuitry prohibits certain outgoing calls. Systems differ in the degree to which an owner can program them. Some simply block all long-distance calls; others block calls to specific area codes, such as 900 numbers, and even local exchanges like 976 numbers on which you can hear jokes or get sports scores. This feature can cut phone charges that are clearly not business related.

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Station Message Detailed Recording (SMDR) This software tracks outgoing calls. It is available standard on some large key systems and many hybrids and PBXs. For each call, SMDR will list the number called, the duration of the call, the extension the call was made from, and the date and time of the call. Company managers report that long-distance phone bills drop 20% after it is announced that SMDR is on the premises, because employees stop making personal long-distance calls.

SMDR can be used in less surreptitious ways, too. Because calls are logged by extension, you can automatically divide phone bills by department. And most systems allow you to attach accounting codes to specified phone numbers, so calls to particular vendors can be grouped and a bill generated directly.

SMDR can work with a personal computer, which stores the data. If not a standard feature, SMDR will cost about $1,000. If you don't have a computer, you can buy a standalone SMDR system for $2,000. In either case, you'll need a printer.

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Least-cost routing This software automatically selects the cheapest long-distance carrier for each call, based on a database of rate schedules. Route selection is usually standard on PBXs and is usually not available on key and hybrid systems. It makes no sense unless you make many long-distance calls, since maintaining the database will entail time and effort.

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Voice mail You've heard it: "Hi. This is Tom Terrific. I'm not at my desk. If you want to leave a message, press 1, then wait for the beep. If you want to speak to an operator, press 0."

Many people are passionate about voice mail, in essence a company-wide answering machine that automatically directs messages to each employee. Phone companies say it will save any business thousands of dollars a year by improving efficiency. Critics say it alienates customers.

Many companies buy voice mail as a service from the phone company or a third party and pay a monthly charge, which usually starts at about $7 per month per phone station. Alternatively, you can buy a standalone system; prices vary widely, but divide a price by the number of employees and compare it with the $7 figure. You may end up paying more to buy a system, but you'll be able to reprogram it without involving the phone company.

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Automatic attendant This feature directs calls to different employees and provides information without anyone answering a phone. Callers are greeted with a recorded message and are instructed to do various things, such as dial an extension or enter an account number to access information. This reduces employee phone time. A limited system may come standard on larger hybrids and many PBXs. If not offered, it will cost anywhere from $1,000 to $5,000.

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Automatic call distribution This feature pays only for companies handling lots of calls, like mail-order firms. Incoming calls are distributed among pools of operators; if all are busy, the calls are stacked and sent to operators as they become free. A system can cost $10,000 to $20,000 but could be worth it for a telemarketing firm with a few dozen people, because efficiency gains might allow you to get away with one less employee.

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Choosing a vendor

Choosing the right vendor is as critical as choosing a system. Buying an average system from an excellent vendor is better than buying the best system from a poor vendor.

You've got two choices of suppliers: the phone company or a dealer. With either, do more than compare initial price; take into account which system is less expensive over its useful life, which should be at least five years. This is driven by the terms of the service contract and the reliability of the product and its maker.

Standard service contracts range from $5 to $7 per month per station. On-site service the same day that you call is an industry standard and should be part of the service contract at no extra charge. Also factor in room for expansion; some vendors charge much more than others do to reconfigure systems or add phone lines.

The reliability of the system is reflected in the reputation of the vendor. "We think some significant bias toward larger companies is warranted," says Bill Schwartz, president of Xtend Communications, a consulting firm in New York City. "There is nothing as useless as a key system from a manufacturer that has closed its doors."

There are several ways to test the quality of potential suppliers. The obvious one is to get references from end-users. You can also separate the good supplier from the mediocre by asking about certain attributes. A good vendor, for example, will offer advice during the design of your system if you are unsure of exactly how many phones or lines you may need. Such a vendor will configure the initial system after it is installed (program extensions, fine-tune features, and so forth) and train your employees in using the system, at no extra charge.

Buyers should also "look for a company that will talk to them about how their business works and how equipment can help them solve business problems," says Keith McDonald, director of marketing at Comdial, a manufacturer in Charlottesville, Va. If the system is not tailored and programmed to your special needs, or if your employees aren't trained in its individual functions, many of its best attributes will go unused.

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