Paperwork chaos for communications integrators
This is one of those ‘prediction’ posts for comms solution companies.
Talking to a couple of integrator partners today about the change of IPT solutions from hardware to software, and about software upgrade renewal plans, it became clear there are issues bubbling away for the unwary.
These maintenance and support plans are designed to give the customer a better deal on continuous upgrades, and encourage a well supported customer base - presumably to higher levels of customer satisfaction over the period.
As a customer you get to know your upgrade costs in advance, and don’t suddenly have to ‘find’ money you didn’t know you needed for an upgrade. Manufacturers get more revenue to fund further research ….so all well and good all round.
There’s a seemingly small issue though, one that can bite you
- The customer only wants to start their support contract from the completion of install, which can be months after original kit order
- The manufacturers start the 12 month clock when they ship
Renewals are sent from the kit manufacturer three months before you’re likely to see the revenue from your customer - and paying out months before you even know if you’re going to get your contract renewed isn’t much fun.
This is compounded when lots of suppliers on the same install are going live at different times.
So, if your suppliers aren’t flexible about go live days for your orders - as opposed to ship dates - there will be trouble about 9 months later.
Sounds about right when dealing with some manufacturers.
Our company supplies workflow solutions, so we can manage the lead times for solving the issues (saving a personal headache). But I bet there will be more than a fair few accounts in the industry on stop this time next year.
