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Beware
the Service Contract
By:
Rob Lough, General Manager |
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I frequently
peruse the websites of IT service
providers in an effort to research
competitive business practices, consider
new ideas, and ponder different perspectives
with regard to how we might improve
upon the services we provide to our
clients. Invariably I encounter the
service contract. While there are
advantages for client and vendor
to service contracts, it seems that
most configurations tilt disproportionately
in favor of the vendor. Two favored
inducements are response time and
hourly rate, as if to suggest that
good service at a decent price is
itself something extra that must
be purchased. I have discovered various
examples that leave me, if not feeling
sorry for the clients, at least amazed
at how the vendor summoned the audacity
to sell such a thing. Consider the
following:
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In
exchange for several
thousand dollars to be paid up-front
and the
client’s signed
commitment for one
year, one vendor would
assure the
client a return phone
call within 48-hours
of the client’s
initial call for help.
For double the first-level
up-front money, the
vendor would return
the call within 24-hours.
For triple
the initial up-front
sum, a return call
could be expected sometime
that
same day! Without this
service contract, the
vendor suggested response
times
up to a week or more.
There was actually
a client testimonial
on the vendor
website wherein some
poor soul heartily
commended the vendor
for offering him
the option of paying
a ton of money up-front
and signing a one-year
contract
for the privilege of
obtaining a decent
level of service.
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For
thousands of dollars
in advance
and a one-year
commitment, one vendor promised
a reduced hourly
rate. This
would presumably
mean that clients would
receive more hours
of service
than they otherwise
might, for the
same amount of money, if
only they
would pay the vendor
for those hours
right now. Additionally this
vendor
has his clients
pay enough money in advance
that they would
be compelled
to ignore any competitive
offers, if only
to “get
their money’s
worth” from
the arrangement.
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Another vendor
offered a telephone
support contract.
For $50, clients
would be allowed
400 calls per
month. These clients must
now pay $50
per month for a minimum
of one-year
minimum ($600 commitment)
for the privilege
of calling
this vendor. Obviously
there is little
to be solved
over the phone,
especially
for twelve and a-half
cents per call,
so a technician
or engineer
would be dispatched
forthwith.
At regular rates of course.
This vendor
even
goes so far
as to suggest how
many times
you might want
to call him
every month so that he
might send
someone out for
the one-hour minimum
service call.
These
are but a few of the many variations
of service contracts you might be persuaded
to consider when dealing with IT service
providers. While service contracts
can benefit some clients, ask questions
before signing on the dotted line.
Determine exactly what you’re
getting for your money. Do not be compelled
to pay extra just to get the quality
of service you should expect anyway.
Never sign a commitment that appears
too good to be true. No business
can properly respond to as many
as 400 of your phone-calls for $50,
but they might be able to get you
to pay $50 per month and sign a
contract only to conduct business with you
the same way any other service
provider might with no contract or monthly
fee. If you have any questions,
or if you’re simply looking to
get your money’s worth, call
Micro Visions, Inc. at 616-776-0400,
or visit us at www.microvisionsinc.com.
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