ROI on Hosted Voice vs. Premise Based PBX

In a recent meeting, we were discussing the current state of the economy, the time value of money, our services, and the return on investment (ROI) between Hosted Voice and Premise Based PBX (click here for a brief description of both).

Our Sr. VP of Sales, Sean Burke offered us the following insights:

Let’s say the charges for our service is $3,000/month.  You may look at that and do the following calculation to determine the ROI on our solution:  $3,000 x 36 = $108,000.

That is merely tells you how much you are going to spend on our service over the next 3 years, but speaks nothing of your ROI.

The best way to determine the value of your investment is by looking at your investment taking the time value of money into consideration.  Let’s look at this from a strict money comparison (which does not include the value of added features, innovation, support, etc.):

Here are 2 examples:

  1. CONSERVATIVE – If your company received a small business loan today from the  Small Business Administration Loan (these are actually pretty hard to get too given the economy)- the rates range from NY Prime (3.25%) + 2.25% = 5.5% to NY Prime (3.25%) + 6.5% = 9.75%.  So let’s use 7% to show a middle ground calculation.  A $3,000 monthly payment over 3 years with a 7% rate is VALUED in today’s money at = $97,159 for a difference of about $10,000 (from what was calculated above based on total $’s spent). But even this calculation is extremely conservative and here is why…7% interest is a very conservative estimate of the value of a growing companies future value.
  2. A FAST GROWING COMPANY (REAL EXAMPLE) – The average growth rate of the Inc 500 companies is 46%.  If you use this number the value of $3,000 paid monthly over 3 years is = $58,057 for a difference of about $50,000. From a business perspective/cash flow perspective – leaders of high growth companies should understand that deferring your payments to monthly amounts so that you can free those dollars to invest in your high growth entity is ALWAYS a smart decision.  Think of it this way…the company is growing by 46%.  Which means each dollar you invest in growing your business is worth $1.46 in one year; in two years it is worth $2.13, in year 3 it is worth $3.11 – so there is a much larger value to them in investing their money INTO growing their business vs. buying PBX’s.

If you are interested in learning more, please contact us – we’d love to discuss this with you.

Also, for a calculator you can use to determine the time value of your money – click here.

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These are a few of our favorite (google mail add-on) things!

When it comes to selecting an email provider – your choices are nearly endless.  With one quick Google search, I was directed to this article which highlights the Top 18 Free Email Services.  That’s just the best of the free services – that doesn’t even include the email provided by your employer or by your Internet Service Provider.  In many ways, they are all very similar…they provide you with more than enough storage, with decent spam filters, and with mobile access in addition to desktop access, just to name a few.  So how do you differentiate between them; and furthermore, how do you choose?  For us, it’s all about the add-ons and one provider stands out among the rest:

Google Mail.

So what are add-ons anyway?  Add-ons are small pieces of software that add features and/or functionality to your basic email account.  Your email provider wants you to be happy.  Instead of overwhelming you with features you don’t need and will never use – add-ons allow you to customize your email for the ultimate user experience.  Here are a few of our favorite add-ons offered by Google:

AwayFind:

Are you productive when you are waiting for an important email?

If you are like me, you try to be, but you are easily distracted.  You start working on something else, but every time you hear your phone chime with an email alert, you have to check it.  Yes, that is a surefire way to ensure to won’t miss that email.  It also ensures that you will spend a good part of your day dealing with emails that were not urgent.  Did you know it takes 4 minutes to get back on track after an email interruption?

With AwayFind, you can quit obsessing about your email.  With just 1-click set-up in your google mail, you will be notified via voice message, text message, or through an iPhone or Android app alert when your predefined parameters are met.

Boomerang:

Boomerang allows you to schedule messages in Gmail to send at a later time, to remind yourself to follow up on an important message, and to keep track of who responds.

  1. Send Later – The ‘send later’ button allows you send an email at a later date/time.  It provides you a choice of common send times or you can select the specific date and time.
  2. Boomerang Reminders – The ‘Boomerang’ button archives a message and returns it to the top of your inbox on a specified date or after a certain amount of time.  It provides you the email and reminds you to respond when the time is appropriate.
  3. Response Tracking – This feature places a sent message at the top of your inbox, if you haven’t received a response within a time frame you specify.

Google Labs

Here is how you can access Google Labs:

  1. Click on the Gear Symbol on the upper right hand side of your gmail.
  2. Hit Settings
  3. There will be blue tabs across the top of your screen – click on Labs
  4. When you find a lab you like, click enable.

Bear in mind, these are experimental new features in Gmail.  Some things are here today, gone tomorrow.  Some things become permanent features.  We hope the following stick around because we find them really helpful:

CALENDAR GADGET

This lab provides a list of, and details about, your upcoming events and activities found on your Google calendar.  It is displayed to the left of your Gmail window.

INSERTING IMAGES

This lab allows you to insert message into the body of your email.  You can either upload and insert a file off of your computer or by URL.

PREVIEW PANE

When you highlight an email in your inbox, you will be able to read this email in a preview box located on the right of your inbox, instead of having to double-click and open each individual email.  It allows you to tackle your inbox much faster. UNDO SEND

This feature adds about a 5-second delay between when you click ‘send’ and when Google actually delivers the email.  This is really helpful for those moments when you fire off a quick response, hit send and then think better of it.  If it takes you longer than five seconds to realize you went overboard….you’re out of luck.

Stayed tuned – next week we are going to highlight our favorite Google Add-ons for businesses!