The 30 Day Telecom Contract

We were recently approached by a new potential client who gave us the business, simply because we offer a 30 day telecom contract.

This lady had decided that one of the most important features for her was to have the flexibility of not being sewn into a 36, 60 or 84 month contract.

Great Service

When Merlin originally formed, the Directors made a conscious decision to be different from their competitors. https://www.merlin-telecom.co.uk/company/why-choose-merlin/ Most importantly, they wanted to provide a customer friendly agreement and provide the very best technical support and customer service possible. Potentially, if a client could move away after a month, then Merlin could never rest on their laurels. They really would have to go the extra mile, to keep the business. This has always been the philosophy for Merlin.

At the time, other telecom companies were offering the standard 3, 5 or 7 year terms.

Interestingly, one of the main reasons telecom companies like to tie you in, is to have a healthy valuation on their balance sheet. This value is great for them should they wish to sell their company in the future. It makes perfect sense but, is there any incentive to deliver that all important customer service? In most instances, no. This has been validated by many clients that have moved to Merlin after coming out of a long contract.

Merlin were pioneers of the 30 day telecom contract.

Pricing

The other major point here, is that prices are fixed for the duration. What seems to be a good deal on day one, certainly won’t be in year 5!

Case in Point

We have had many clients who were totally frustrated with the poor service they were getting and after analysing their invoices, realised that not only were they putting up with shoddy service, but they were also paying way over the odds for their business telecoms. Being stuck in the middle of a long term contract and wanting to move is difficult and can be prove very expensive. Extortionate early termination fees can really make moving a non starter.

We recently carried out analysis for a company who had signed up to a 7 year deal. They had 3 years of the contract left to run and the early termination fees were an eye watering £12,000! However, comparing their currently monthly fee of £400 against Merlin’s like for like charges of £225.00 meant a monthly saving of £175. This meant a saving of £6,300 over the remaining 36 months. Taking this saving into account, meant the client would only have to pay an early termination fee of £5,700. On this basis, they are prepared to move to Merlin in order to receive the service they require, a system that fully accommodates their requiements and a 30 day telecom contract.

Longer than 30 days?

Sometimes the upfront cost of phone system hardware or installation costs can be expensive, especially if you are a large organisation. Including the cost of this into a longer term contract can be a good way of spreading the cost. However, always do the math to ensure you are not paying over the odds.

Our best advice – never go beyond a three year term.