The Interconnect Insider
*******
Is Bigger Better?
March 9, 2007
By: Brian Stutzman
Way before I retired from the day to day operations of my telephone interconnect, I had a huge desire to learn from the best in our industry. Just because I had written “How to Turn your Interconnect into A Cash Cow” I knew I still could learn more. So I started talking to people, mostly who had bought my book.
One notable gentleman ran a large interconnect in the Northeast. He spent several hours on the phone with me and I asked him a ton of questions. Believe it or not, it was not about products or phone systems, it was about business operations. He informed me that for years his firm bought into the notion that “bigger was better” and they had worked hard to invest in a second location and then a third. He tripled the size of his operation, hired new folks, reached new markets, and increased his sales! Sounds great, right?
Sad story though, it was not great. His headaches went up, his employee problems escalated, he found himself working harder than ever managing three locations, and at the end of the year his actual take home bottom line profit was nearly the same! A great lesson was learned: bigger is not always better.
Too many interconnects focus on their top line, gross sales, instead of their bottom line, take home profit to the owners. So they spend their time looking at ways to sell more instead of make more. I call it Earnings to Revenue, or E/R. E is much more important than R in a normal business model. I spent an entire chapter in the CASH COW book discussing E/R. I hope this brief article will cause you to pause and wonder if you are focusing on the E or the R, the bottom line profit or the top line revenue. Growing your E is better, I promise you that. For questions or comments, email
Brian at brians@if.rmci.net
Brian Stutzman
Interconnect owner, lecturer, and industry author
The Interconnect Insider
A Brian Stutzman Production
*******
“Business advice strictly for the
interconnect owner and manager.”
Finally! A FREE newsletter designed specifically for the Interconnect Telephone
Industry. If you sell, install, and repair office phone systems, you will
benefit from this free newsletter.
This newsletter is the private works of Brian Stutzman, noted industry author of
“How To Turn Your Interconnect Into A CASH COW!” and speaker at the North
American Telecom Dealers convention. Brian Stutzman, himself a successful owner
and manager, who would like to share with you tons of advice that can help you
run your business better and at no charge. Call it a labor of love, he wishes he
could claim credit for all the ideas, but frankly has gathered great ideas
through discussions with over 100 interconnect owners, and is ready to share the
best of the best with you. If you have comments or questions, or would like
information about ordering his "How to Turn Your Interconnect Into A
Cash Cow!" please email Brian@Businessphonespecialists.com
*******
Jan. 5, 2007
By: Brian Stutzman
INTERCONNECT INSIDER
Issue 1
“Advice strictly for the owners and managers of telephone
interconnects”
In the last two years I have asked over 50 telephone interconnect owners two
questions:
1. What do they pay their technicians, and
2. What rates do they charge their customers
Naturally, the answers varied by geographic area and local costs of living
prices. But here is a general overview of what many interconnects pay their
technicians, based upon my research.
Entry level (wire pullers, apprentices) $8-13 per hour
Experienced Key System Technicians $11-17 per hour
Experienced PBX Technicians $15-26 per hour
Employee Benefits varied but almost always included paid vacation and paid
holidays. As with most small businesses, interconnects struggle to provide
affordable and comprehensive health insurance plans.
There were also some variance to what interconnects charge for labor. Nearly
everyone rounded to the nearest quarter hour after a one hour minimum. Most are
now charging in 30 minute or hour increments after the first hour. In
metropolitan areas or on advanced PBX systems a few charged a two hour minimum,
even for a 5 minute call out.
Hourly rates in rural markets seem to be around $65-90 per hour. Metropolitan
rates seem to be $90-$140 per hour.
Call Out Fees: About 30% I talked with charge an additional call out fee with
the first hour of labor, ranging from $15-$50 per hour.
Travel Fees: Most interconnects have a local zone where no travel is charged.
Outside of the local zone travel fees run from 50% to 100% of the regular hourly
rate normally charged for billable work.
I hope you have found this edition of Interconnect Insider helpful.
Jan. 5, 2007
By: Brian Stutzman
INTERCONNECT INSIDER
Issue 2
“Advice strictly for the owners and managers of telephone
interconnects”
Checks and balances. The United States Government is built around this concept,
yet many interconnect owners do not put checks and reviews in to their daily
business operations. The lack of review cost one of my competitors his business
last year. Imagine having a major, long time competitor go out of business! One
of the ex owners told me their secretary had embezzled a large sum of money and
they did not know about it until it was too late to save their firm.
I started to rethink my daily business routine and established these practices:
1. Incoming mail- I have one person retrieve and open all mail, and another sort
checks and prepare the deposit.
2. Bank matters- I open and review all checking account statements before our
bookkeeper gets it and I review our current receivables and bank balances on a
daily basis
3. Work Orders and Invoicing- after each work order is completed our dispatcher
does the preliminary billing and a second person reviews the accuracy, and a
third person does the actual invoicing. Having several eyes look at the invoice
reduces errors and questions.
4. Payroll- A few years ago I was having my secretary do my payroll checks via a
popular financial software package. At the same time I had a very aggressive
salesperson who was enjoying a high level of success. At times, my salespersons
paychecks (based upon commissions) were four to five times what the
secretary’s hourly paycheck was. It did not take long for jealousy to cause
the secretary to demand a pay raise. “I contribute as much to this company as
that salesman does, maybe even more!” and “I have the ‘hard skills’ that
are required to keep this firm going and I deserve an equal part of the
payroll” were eventually thrown at me. It did not take long for this secretary
to leave our firm. I am sad to report it was in a huff and was not the way I was
hoping the departure would be. But the departure was about money, at least in
part. After this experience I decided to (A) do all payroll my self, and (B) ask
each employee not to discuss payroll issues with anyone but me. Since that time,
I have had no problems over payroll, and I can pick and choose whom I give
bonuses and raises to, and when, without anyone else knowing what I am doing,
questioning my raises, or demanding equal treatment.
Jan. 5, 2007
By: Brian Stutzman
INTERCONNECT INSIDER
Issue 3
“Advice strictly for the owners and managers of telephone
interconnects”
I recently had 17 owners of telephone interconnects from all over the country
come to a conference I hosted in Idaho Falls, Idaho. We held a roundtable
discussion after the daytime training sessions and talked about a few topics we
all faced. Hiring of good sales people seemed to be of common interest to all.
How do you find good salespeople? And how do you keep them, especially in up and
down economic times? One magic source for great salespeople has been teachers
from the public education system.
I interviewed one prominent interconnect on the east coast a while back when I
was vacationing. Several managers and salespeople were ex teachers. I had lunch
with a sales manager who was an ex high school football coach. They explained
that the qualities and talents teachers have are ideal for sales
representatives. The ability to learn and then teach concepts, relate to people
in all walks of life, and the confidence to speak in front of groups are all
helpful in the sales game.
The ex football coach explained that his high school experience prepared him to
lead, direct, inspire, manage, and motivate a team of sales professionals. As
you might expect, each of the ex-school district employees left the public life
for private business to increase their incomes and subsequently provide better
for their families.
Keeping good salespeople is an art in and of itself. We concluded there is no
magic formula or someone would have written a book about it (oops, maybe there
is a book out there). Good pay, recognition, opportunity, stock options or
ownership opportunities… they may help. But, by and large, salespeople, really
good professional salespeople, seem to march to their own drum and there is no
iron cast rules to keep them long term and happy. Submit your best ideas on this
subject to me at brian@Businessphonespecialists.com
source
FCC.gov
How
VoIP / Internet Voice Works
VoIP converts the voice signal from your
telephone into a digital signal that travels over the Internet. If you are
calling a regular phone number, the signal is then converted back at the other
end. VoIP can allow you to make a call directly from a computer, a special VoIP
phone, or a traditional phone using an adapter. In addition, new wireless
"hot spots" in public locations such as airports, parks, and cafes,
allow you to connect to the Internet, and may enable you to use VoIP service
wirelessly. If you make a call using a phone with an adapter, you'll be able to
dial just as you always have, and the service provider may also provide a dial
tone. If your service assigns you a regular phone number, then a person can call
you from his or her regular phone without using special equipment.
What Kind of Equipment Do I Need?
A broadband (high speed Internet) connection is
required.
This can be through a cable modem, or high speed services such as DSL or a local area network. You can hook up an inexpensive microphone to your computer and send your voice through a cable modem or connect a phone directly to a telephone adaptor.
Is there a difference between making a Local Call and a Long Distance Call?
Some VoIP providers offer their services for free, normally only for calls to other subscribers to the service. Your VoIP provider may permit you to select an area code different from the area in which you live. It also means that people who call you may incur long distance charges depending on their area code and service.
Some VoIP providers charge for a long distance call to a number outside your calling area, similar to existing, traditional wireline telephone service. Other VoIP providers permit you to call anywhere at a flat rate for a fixed number of minutes.
If I have VoIP service, who can I call?
Depending upon your service, you might be limited only to other subscribers to
the service, or you may be able to call any phone number,
anywhere in the world. The call can be made to a local number, a mobile phone,
to a long distance number, or an international number. You may even utilize the
service to speak with more than one person at a time. The person you are calling
does not need any special equipment, just a phone.
What Are Some Advantages of VoIP?
Because VoIP is digital, it may offer features and
services that are not available with a traditional phone. If you have a
broadband internet connection, you need not maintain and pay the additional cost
for a line just to make telephone calls.
With many VoIP plans you can talk for as long as you want with any person in the world (the requirement is that the other person has an Internet connection). You can also talk with many people at the same time without any additional cost.
What Are Some disadvantages of VoIP?
If you're considering replacing your traditional
telephone service with VoIP, there are some possible differences:
Some VoIP services don't work during power outages and the service provider may not offer backup power.
Not all VoIP services connect directly to emergency services through 9-1-1. For additional information, see www.voip911.gov.
VoIP providers may or may not offer directory assistance/white page listings.
Aspects of these considerations may change with new developments in internet technology. You should always check with the VoIP service provider you choose to confirm any advantages and limitations to their service.
Tech Talk: Aug 9 2006
You get what you pay for?
A common
cliché. It’s usually right. Sometimes not for the reason we think.
I’m careful about talking down the price of goods or services. Don’t get me
wrong. I don’t like to pay retail. Always looking for ways to buy things at
the “best” price. However, if the (reasonable) person you're buying from or
selling to does not feel like they are getting a good trade, there will be
resentment. Ok, you twisted the buyers arm a bunch and bought the phones at a
great price, but the seller isn’t happy. Next time he sees you comin he’ll
remember the last experience. May not be inclined to go the extra mile to help
you. Many times you are not just buying the product but the also the
service/support that can accompany it. I had a customer once who always paid me
more that what I invoiced him for. Know what happened when he needed me to do a
MAC? I was there asap. Both parties need to feel like they get a good deal in
any trade.
By Richard Morris of http://aa.peavey.com/
Source
News: October 2005
Empowering Telecommunication Customers with a Powerful Resource Center
LAS VEGAS - Sundance Communications
solves problems for thousands of website visitors everyday that aren't even
customers of their services. Through its online message boards, forums and
directories, users are helped by professional telephone technicians and
installers 24 hours a day, 7 days a week, 365 days a year.
*******
October 6, 2005 -- Sundance Communications has
been online nearly from the inaugural opening of the information superhighway.
To put the longevity of their presence in perspective, they registered their
first website http://www.telbroker.com
just days after Google first register their first domain name.
Sundance Communications opened in 1994, and quickly realized the power of the
Internet. Launching the telecommunication website in 1997 makes them one of the
oldest online telephone suppliers. It didn't take long for owner Tom Brandes to
establish the strongest online presence for telecommunications equipment,
ranking at the top of all major search engines for almost anything surrounding
telephone equipment, telephone installers, telephone suppliers and more. In the
past year alone, their website traffic has more than doubled.
Being one of the oldest and highest ranked telecommunication equipment suppliers
online had its disadvantages too. It brought in a flood of inquiries and
questions into Sundance Communications that was quite simply out of their
purview and areas of expertise. Rather than ignore the requests, or turn away
people that were seeking assistance and answers, Sundance Communications
launched an entirely new website, http://www.sundance-communications.com
, a business phone systems resource center to assist all consumers.
The additional website was launched in 2000, with the mission to help consumers
get telecommunications equipment answers, telephone programming and phone system
features help or locating a reliable, professional telephone installer in their
area. It continued to evolve to provide online business telephone equipment
manuals for download, directories for telephone equipment, telephone installers,
telephone equipment auctions, telephone technician’s network, and a community
forum for installers and users.
The Telephone Installer’s Directory, http://www.sundance-communications.com/installers/Telephone_Installers,
is a regional database that allows installers from around the globe to be
listed, making it easy for consumers to find the business telephone system
installation help they need, while allowing professional installers to be found
by consumers looking for services - this is a free service offered by Sundance.
"We were getting swamped with phone calls by consumers looking for
programming help, how to activate a phone feature, or 'Who can I get to install
an additional phone or relocate the entire system,'" says Brandes. "We
wanted to help, but didn't have all of the information they were seeking, nor
did we simply have the resources to handle of all the requests."
This led to Sundance Communications community forum, message board web site, http://www.sundance-communications.com/cgi-bin/Ultimate.cgi
The Tech Talk forum is moderated by nearly fifty professional telephone
technicians, and over 200 installers, whose answering questions and offering to
help to consumers from around the World Wide Web to get quick, easy to
understand and free advice 24 hours a day, 365 days a year. With over 6900
registered users and nearly 75,000 posts, the forum has become a huge hit with
consumers and technicians alike.
Brandes sounds like a proud parent when asked about Sundance Communications'
Tech Talk forum, "There isn’t a question that can’t be answered or a
customer that goes unassisted. Just a year ago, we were receiving 1500 visitors
a day to the website looking for help; today, we get approximately 4,000 visits
a day."
About Sundance Communications: A leading supplier of telecommunications
equipment since 1984. Sundance Communications is committed to selling
high-quality, low-priced, new and refurbished telephone systems and equipment,
with packages that suit both business and personal needs.
Contact:
Tom Brandes, Owner
Sundance Communications
866-451-4545
http://www.telbroker.com
Tech Talk: March 2005
Tech Tid-Bits on Digital ~v~ Analog
Original question:
Posted by: kraneworldchamp
Can any one tell me what the difference
between digital telephone systems and analog and what are the advantages and disadvantages
of both?
Tech answers:
Hal-at
Comsystec Telecommunications
Ha, you sound like some of my customers. I tell them that they are all digital
but some manufacturers think that by using "digital" in the product
name and printing it on everything they make will give them a sales advantage.
As far as real advantages, all I can think of is that most so called
"digital" systems use one pair for each station as opposed to the much
inferior "non-digital" 
which uses two. A single pair can be used because the audio signal is not analog
however the disadvantage is that you cannot use standard T/R devices but there
are ways around this with some systems.
So this is really just a design issue with no real advantage from one to the
other.
RedTail-Communications
Tech. SBC
There are two kinds of switching, Space Division (analog), and Time Division
(digital). Voice communication is an analog signal. Analog switches do not
modify the input signals. Each connection is like having your own road to drive
on. Digital switches move numbers from one port to another using common
connection just like all the cars sharing the same road. Voice (analog) must be
converted to numbers (digital) to go thru a digital switch then converted to
voice (analog) again. Just as paint by numbers (digital) images can never match
photographs; there is a small distortion in the voice signal thru a digital
switch. The ear does not notice this change. 56k modems cannot transmit from one
analog port to another analog port of a digital switch. Analog switches can pick
up electrical interference as noise. Digital switches are more resistant to
noise. Just as you can still read a news paper if it has some dirt (noise) on
it; digital switches will send a clear signal as long as the numbers get thru.
gkar
I think the industry stopped producing analog switches in 1975. If a salesman makes a comparison of their product as its digital compared to the competitors analog. I would run away very fast. Saying a phone system is digital is like saying water is wet.Phone lines
Analog lines, also referred to as POTS (Plain Old Telephone Service), support
standard phones, fax machines, and modems. These are the lines typically found
in your home or small office. Digital lines are found in large, corporate phone
systems.
How do you tell if the phone line is analog or digital? Look at the back of the
telephone connected to it. If you see "complies with part 68, FCC
Rules" and a Ringer Equivalence Number (REN), then the phone and the line
are analog. Also, look at the phone's dial pad. Are there multiple function
keys? Do you need to dial "9" for an outside line? These are
indicators that the phone and the line are digital.
A word of caution. Though digital lines carry lower voltages than analog lines,
they still pose a threat to your analog equipment. If you're thinking of
connecting your phone, modem, or fax machine to your office's digital phone
system, DON'T! At the very least, your equipment may not function properly. In
the worst case, you could zap your communications tools into oblivion.
How? Let's say you connect your home analog phone to your office's digital line.
When you lift the receiver, the phone tries to draw an electrical current to
operate. Typically this is regulated by the phone company's central office.
Since the typical proprietary digital phone system has no facilities to regulate
the current being drawn through it, your analog phone can draw too much
current—so much that it either fries itself or in rare cases, damages the
phone system's line card.
Perhaps the most effective use of the digital versus analog technology is in the
booming cellular market. With new phone activations increasing exponentially,
the limits of analog are quickly being realized. Digital cellular lets
significantly more people use their phones within a single coverage area. More
data can be sent and received simultaneously by each phone user. Plus,
transmissions are more resistant to static and signal fading. And with the
all-in-one phones out now—phone, pager, voice mail, internet access—digital
phones offer more features than their analog predecessors.
Analog's sound quality is still superior—as some users with dual-transmission
phones will manually switch to analog for better sound when they're not
concerned with a crowded coverage area—but digital is quickly becoming the
norm in the cellular market.
You may have an analog phone at home and call your next door neighbor with the
same type of phone but you are still connecting thru a digital switch. You can
buy LP's but the amplifier is digital.
Hal- at Comsystec Telecommunications
If a salesman makes a comparison of their product as its digital compared to the
competitors analog I would run away very fast.
That's exactly what I get sometimes from a prospective customer. We mainly
sell Avaya and they will compare it to Panasonic. They'll say Panasonic is
digital, it says so right on it. It HAS to be better. How come Avaya isn't
digital? I then tell them what I said above and they look at me like I'm
crazy.
RedTail-Communications Tech. SBC
Do not confuse electro mechanical with analog. Production of electro
mechanical switching stopped in the seventies. Solid State analog switching was
produced using varactors. All switching today may not be digital but all
switching today is controlled by micro processors.
Paul144- from Priority One Business Communications
The difference is in the method of transmission. An "analog"
transmission is in wave form while a digital signal is in 0s and 1s. Digital
signals tend to be clearer and use much less hardware (fewer circuit paths) to
transmit the signal. The EKT systems from the late seventies through the early
90s are analog as signal is still being transmitted in wave form.
That said, I do not know of any phone system manufactured today that is using
wave form signaling. Even the Panasonic KXTA system is using digital signaling
inside the switch. Why they decided to call it analog is beyond me.
The Partner is Digital, not analog.
Coral Tech- at Pantel Business Systems
Are you sure? I am pretty sure the Partner uses regular anaglog signaling on the
center pair ala EKT (electronic keyset) as opposed to digital voice
transmission. The Panasonic KXTD actually has a true seperate analog port onb
the center pins AND the digital phone work off pair 2.
Hal- at Comsystec Telecommunications
Originating thread: Digital ~v~ Analog
Feb 2005
By Tom Brandes
Yellow Pages are so 90's
June 2004
By Tom Brandes
What Sundance Communications can
do for your Business.
Here at Sundance we pride
ourselves on helping the end user help them selves and save tons
on money and at the same time learn more about their Telecommunications
Equipment. Business Telephone Systems is and will be one of the cleanest
services as far as voice quality goes for the next 10 years or so, maybe even
longer. The IP phone is a hot item for those who have to travel and need the
ability to be hooked up with their system, but that can be accomplished with
call fdw. You won’t have the system features (speed dialing,
intercom, and other features) but it will be a lot more cost effective. So what
were saying is Business Telephone Systems of today will be around for a while.
What Sundance Communications can
do for you is supply your firm with telephone equipment at reasonable prices,
through our on-line store along with same day shipping. We carry mostly
refurbished telephone equipment (In like New condition) with a 6- month warranty
(Advance Replacement)
Along with Specials on
Lucent/Avaya, Comdial, Executone, Inter-tel, Telrad, Toshiba and more. Check out
the prices and ease of our web site.
Telephone
Equipment Catalog with Prices
If it’s Service you need. We
have resources for most every need. We have a data base of Telephone Installers
around the Country: Find an Installer By clicking on the Company’s name your
able to email the Installer and the description give information as to what equipment
and area they service.
Ok…you want to be in more control of your Phone System, you want to learn how to do some of the minor programming or you just need to understand how to accomplish something with your system. Well...we have you covered, by using a Bulletin Board your able to post questions and have Telephone Installers/ Technicians answer your inquires, They can also program your system remotely or talk you through the steps on the phone for a fee. What you get away from: By maintaining your equipment with help from the Tech Talk Bulletin Board is a local Installer who may go in and sells you a new card when you didn’t need one or a phone when you only needed a new cord. With the economy the way it is. …Beware there out there and they are only trying to survive. Check out the Tec Talk Bulletin Board