Not Exactly the Way to Sell SIP

Peter : On Rad's Radar?
Peter
| Peter Radizeski of RAD-INFO, Inc. talking telecom, Cloud, VoIP, CLEC, and The Channel.

Not Exactly the Way to Sell SIP

XO announced a SIP Savings Estimator Tool in order to help sell their SIP offerings. I understand why they do this: Bell-heads only know how to sell on price.

In my head, why bother? Just keep selling PRI - SIP to the customer premise then PRI signaling into the box. It's what all the CLEC's are doing. Try to find a TDM PRI or a TDM Dedicated LD T1. 

By taking 2 PRI's and hanging the customer 1 SIP Trunk, you are taking money off the table. You are contributing to lost revenue. 

LD minutes, Internet bandwidth and now T1's are so low that it is a challenge for an Agent to make a living selling them. Even more challenging: CLEC's being able to survive by constantly reducing revenue because they are not reducing any other cost factors. Debt load and interest payments are actually increasing, not decreasing. Wait for 2013! 

Cost to deliver service is not shrinking. (AT&T is raising Special Access circuits pricing). CAPEX (capital expenditure) for each sale consists of ILEC install costs, customer hardware, and other costs. I could go on and on, but the bottom line is that constantly reducing revenue while most other costs remain fixed (or at least don't drop as fast) is a disaster waiting to happen.

The high margin sale is face-to-face Consultative Selling, whereby you understand what you are selling and the needs of the prospective business. Matching that up results in a win-win.

At CVX I will be moderating a panel about Upselling SIP with Broadvox and Vidtel where we will be discussing how to use SIP as a stepping stone to a sticky and profitable bundle. Net-heads will get it.


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