Increase Profits by Minimizing Telecommunications Expenses January, 2010 Heather Pauls President/Founder T: (403) 456-2326, Ext # 1 F: (403) 775-0591 www.hpci.ca Contents Mission Statement Business Overview HPCI Management Value Statements HPCI Responds to Most Frequent Objections Previous Client Examples HPCI Clients, and Results References Testimonials Logo Sample www.hpci.ca Mission Statement “It is HPCI‟s primary purpose to work with corporate clients in all industry sectors to assist them in an ongoing knowledgeable evaluation of their telecommunications needs; to identify substantial near term and long-term cost saving opportunities, and to capture those cost savings through effective contract negotiations with service providers. HPCI‟s current focus is on realizing substantial cost savings for our clients in the Mobility Communications segment of their operations. Our fee for these services is set on a contingency basis to ensure that no HPCI costs are incurred unless cost savings are realized for the client organization.” www.hpci.ca Business Overview Telecommunications represents a top‐line budgetary expense for business, and a strategic area to be managed and controlled. Like our Clients, the Service Providers are in business to make money. The unspoken reality that their revenues are dependent upon our Clients‟ expenses, makes it virtually impossible to suggest that they would be diligent in their support of reducing excessive costs. HPCI knows that the telecommunications industry is a competitive market with many providers and hundreds of plans. Inventive advertising campaigns are geared toward new customers, not existing ones. Once a customer is signed to a new contract, the telecommunication companies rely on customer indifference to maintain them at their current profit levels while they continue to search for new users. What sets HPCI apart is our experience and commitment to ensure the Providers refocus their attentions on RETAINING rather than OBTAINING a Client. We are committed to each individual customer and to no particular provider. We can quickly add value in terms of providing inventory control capabilities, invoice and billing review, and contract negotiation support. www.hpci.ca The HPCI Management Team Heather Pauls - President HP Consulting was founded in 2007 by Heather Pauls; an industry insider who spent over 16 years in telecommunications, sales and marketing. For many years she was responsible for customer retention at one of Canada‟s largest telecommunications providers, learning first-hand the lengths to which providers will go to increase, maintain and retain their customer base. Although Heather‟s management skills are now required in various aspects of our business, the initial passion that led her to begin the company still drives her to serve her own array of clients, and to ensure the quality of service provided by all account managers. Jan Jolly – Vice President, Operations The core of any business, regardless of its services, products or industry, is the operation of it. Financial reporting, administrative process and the definition of business strategy are all integral components contributing to a successful business. Jan Jolly came on as a Partner in January of 2009, and has been instrumental in the development of our corporate structure. Having spent years leading the operations side of numerous businesses both locally and overseas, Jan is thrilled to be able to hit the ground running while at the same time learning about the Telecommunications Industry. Megan Merriam – Client Services Manager Megan Merriam comes to HPCI equipped with several years of specialized customer relations, sales and marketing experience and a terrific understanding of what‟s required in order to both cultivate and nurture beneficial client relationships. Having recently graduated from a Business Administration Program, Megan brings with her new ideas and a refreshing sense of enthusiasm. www.hpci.ca Value Statements An HPCI Telecommunications Consultant can offer your company the following benefits: Protect the Client‟s interests – our revenue is dependent upon how much money is saved, while the Service Provider‟s revenue is dependent upon how much is spent. Ensure billing is accurate, and provisioned properly. (All telecom providers have a poor track record of invoicing businesses accurately). HPCI is your advocate to reclaim money that is rightfully yours, while ensuring continued, if not better service and features from your chosen Provider. Identify the most cost‐effective cellular and long distance rate plans, services and options in the market. We hold your mobility provider accountable, and focus our full attention on the management of Client accounts, so our Clients can focus their full attention on their business. Critical analyses of at least 3 months of billing (Especially valuable for seasonal businesses). Identify the need for changes. Help to identify any abuse, misuse and/or fraud, and allow for an analysis of employee productivity and true usage‐based allocation. Negotiate on behalf of the Client with telecommunications providers (TELUS, BELL, ROGERS) Protect Client resources by dealing with the telecom providers directly on their behalf. We have industry knowledge that ensures our Clients are always getting the best available options. All fees are contingency-based, providing a risk-free opportunity for the Client (40% of 1st year projected savings – no savings means no invoice). Our Clients realize savings on average of 42% of their annual spend. Provide peace of mind that this aspect of Client‟s business is being managed by a professional. Provide continual support in the management of telecom expenses by participation in our Ongoing Services Program ($5 per unit/per month). www.hpci.ca HPCI Responds to Most Frequent Objections Even a risk-free opportunity like ours often results in certain critical questions from our potential Clients. Listed below are those that we run into the most frequently, along with our responses. “We‟ve always done a pretty good job at managing our phone bills.” Bell, Rogers and TELUS are in business to make money. We secure many options for our clients that are never made public. “The place where we buy our phones takes pretty good care of our needs.” Your dealer makes his money on activations and renewals, NOT by ensuring your plans and features suit your needs. “We‟ve always had good service from our corporate rep. If there‟s a problem, he fixes it. Plus, every time our contracts up he optimizes our accounts so that we are not paying more than we need to be.” If you’re only hearing from them when your contracts expire, how much are you overspending the other 2.75 years of your contract? Most if not all HPCI clients have corporate representation within their carrier (Bell, TELUS or Rogers), or at the dealer level. Those individuals’ incomes are dependant on how much money our clients spend. Our incomes are dependant on how much they don’t spend. www.hpci.ca Actual Client Data 85 PCS Phones/Air-Cards – TELUS Client I: Home Builder Average Cost Reduction: 41% Average Monthly Savings: $3,190.46 $9,000.00 $8,000.00 $7,000.00 $6,000.00 $5,000.00 $4,000.00 $3,000.00 $2,000.00 $1,000.00 $- Average Costs Per Month 64 PCS Phones – BELL Client II: Oil & Gas Average Cost Reduction: 40% Average Monthly Savings: 1,702.85 $4,500.00 $4,000.00 $3,500.00 $3,000.00 $2,500.00 $2,000.00 $1,500.00 $1,000.00 $500.00 $- www.hpci.ca Average Costs Per Month Using Previous Example: Client II Current Average Spending: $51,085.50/Year OR $4,257.13/Month HPCI Suggested Average Spending (based on quantified offers $30,651.30/Year OR $2,554.28/Month OR 40% Cost Reduction Savings for Client: $20,434.20/Year OR $1,702.85/Month OR 40% Cost Reduction Total Payable to HPCI: $8,173.68 (Based on 3 month historical data gathered from clients cellular invoices) from Existing Provider(s) without change in carrier, or usage) www.hpci.ca (4.8 months worth of savings off cellular savings) Example Con’t. Payments to HPCI as follows (Based on an account with 64 units): 1st Invoice: Upon presentation of suggested savings - $4,086.84* (Implementation Begins) 2nd and Final Invoice: Upon Completion of Implementation and Accuracy Review - $4,086.84 (Client expectation should be 2–4 Billing cycles) *Initial invoices will be based on the estimated first year savings as determined by the quantification of Provider‟s best offer. The final invoice shall be based on verified average savings to date, projected over the first year; adjusted +/- from the initial estimate and reflecting all payments made as of that date. www.hpci.ca Our Results Client Name HPCI Average Cost Reduction Percentage Calgary Lock and Safe 52% Beattie Homes 41% Ultimate Renovations 39% Action Health and Safety Services 43% Smith Group Holdings (Brooks Asphalt/ Smith Trucking) 44% Ultra Construction 35% Cobra Construction 43% Willowbrook Homes 30% Baxter‟s Welding 46% Shane Homes 48% Zapata Energy 48% Kenroc Building Materials 30% Moody‟s Equipment Rental 50% Landmark Homes (Calgary) www.hpci.ca 52% References The following clients have graciously consented to be contacted by any media personnel in order to share about their individual experiences with HPCI. Shane Homes Contact: Bruce Urquhart, IT Manager Cell: 403.816.3283 Office: 403.536.2272 Email: [email protected] Beattie Homes Contact: Bob Daitch, IT Manager Cell: 403.723.7618 Office: 403.252.0995 Email: [email protected] Smith Group (Brooks Asphalt, Smith Trucking) Contact: Eugene Foisey, Controller Office: 403.362.4071 Email: [email protected] www.hpci.ca Testimonials HPCI „s exceptional results continue to overwhelm our clients, which is illustrated by their willingness to provide us with positive feedback and referrals. This is a small sample with more available on our website: www.hpci.ca. Underground Works “I knew that our mobility costs were high, but had resigned myself to that just being the cost of doing business. The idea that HPCI would assess our usage and needs and then negotiate suitable modifications with our carrier without us having to pay anything other than a percentage of what they were able to claw back, was just too good to pass up. Never in our wildest dreams could we have imagined that the process would result in savings of almost 63% of our annual mobility budget! Even after paying HPCI’s fees, we would have recouped enough to add another salary to our payroll.UGW was thrilled with the performance of HPCI and I have been recommending them to any and all businesses that I come across.” ~ Maynard Reimer –Operations Manager Zapata Energy Corporation“…It became very clear very quickly that negotiating amazing savings (48%) with our carrier was only half the battle; ensuring that it followed through with its commitments was every bit as necessary. HPCI’s job wasn’t complete until they were positive that every one of the negotiated items was provisioned properly. Only then did we receive our final bill…. I strongly encourage others to enlist the services of HPCI.” ~ Shelley Luchuck–Accounting Department Skyline Concrete Services Ltd.“In this economic climate it is more important than ever to ensure expenses are monitored closely in order for a business to continue to prosper. Even though we had recently negotiated savings with our provider, HPCI was able to save an additional 30% on our cellular bills. I was astounded! We are completely satisfied with the service and professionalism offered by HPCI and have already scheduled our first 6 month review.” ~ Kerry Brabant –Operations Manager www.hpci.ca Pantone Colour: Reflex Blue
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