WHY SERVICE MAINTENANCE CONTRACTS?

Eric Burch of Venture Communications Clarifies Maintenance Contracts & What Venture Offers

11:11 AM 11/7/2008

The IT and Telephone systems are the two most critical aspects of any business. They are the nerve center that keeps the business going day in and day out. These two systems provide voice and data, calculations and other mission critical functionalities without which many businesses would come to a grinding halt. That is why a lot of companies purchase equipment with warranties but refuse to purchase maintenance contracts that basically cover the same things as a manufacturer warranty does. Nothing could be further from the truth.

Eric Burch at Venture Communications, Inc. knows what maintenance contracts are all about. Eric owns and operates Venture Communications, Inc., which is located in Lubbock, Texas. In business since 1982, Venture Communications, Inc. started off as a seller of telephone equipment. In 2002, they began acquiring DATA VARs and started selling IT Infrastructure (Computers, Servers, Routers and Switches) and have not looked back since. Venture Communications is now a full-service technology solutions provider, specializing in networking and communication technologies including Copper and Fiber-Optic cabling, Telecommunication Strategies, and Voice over IP Solutions. Some of the brands they deal in include ESI, Dell, Panasonic, Citrix and ShoreTel. Venture Communications, Inc. also provides maintenance contracts for the equipment it sells.

Eric explains that a maintenance contract is needed when uptime is an issue. “A lot of people confuse a maintenance contract with the manufacturer’s warranty.” The manufacturer warranties their products to be free of defects for a given period of time. “Generally that’s it.” The manufacturer is not bound to any timeframes response to a customer’s call or to get a replacement product on site in a certain period of time. On top of that, even when a replacement part arrives, it will generally be the responsibility of the insured to install it or have it installed. “When a customer is under a maintenance contract, all of that, and more, is taken care of.”

Eric also points out that, “There are not many instances when a maintenance contract is not necessary.” The telephone and computer systems in a business are vital to the business and very few companies can afford to have their systems down for long periods of time. Imagine the chaos that would ensue if your company’s computer system was down for 24 hours. That is what most business fear, being shut down for and indefinite period of time. This is where having a service maintenance contract allows you to have parts and service within a couple of hours, instead of days. Eric admits that he sells “A couple of systems that are so dependable that I feel bad about putting them under contract…..They never break.” Of course if the system is truly mission-critical Eric still recommends a service maintenance contract..

There are different types of service maintenance contracts but they all have the same basic components. Eric says that “it really just depends on the level of protection that you want.” Contracts are based on a number of different factors. One of the first considerations is price. The price of the contract is based on two factors: The size of the system and the length of the contract. Eric state that “the features that we offer, all work together to insure that the customer’s interests are protected.” He warns that if items are removed from contract, it may cost less but the loss from downtime would eliminate the savings.

A service contract must be designed to make sure that the telephone or computer system used by your company is ready to meet all your business needs. To meet this goal Eric includes the following in his contracts:

• Hardware Replacement - Any time Eric agrees to place a system under contract he makes sure that Venture Communications has replacement parts on the shelf and ready to place in service in the event that part fails on the customer’s site. This is a must for speedy replacement and service.
• System Administration – Eric points out that many of his customers are not large enough to have their own technicians so he provides ordinary administrative functions for the system. This helps cut costs for the client and also provides a valuable service that normally a business cannot afford.
• System Backups – Venture Communications, Inc. can also keep a regular backup of system configurations, where possible. This is what they keep on hand in the event of a “catastrophic failure of the processor.” With a backup, the system programming can be restored “in a matter of minutes.” This is an important feature for clients that need their system running all the time.
• Software upgrades – software drives most telephone systems today and allows for advanced functionalities. Eric says that “if there are new features or fixes available that would benefit the customer; we will perform that upgrades as part of our services.” This helps keep the clients system up to date and bug free.
• No expiration dates – Eric points out that his maintenance contracts are in effect until the customer decides to end it. That means that a client will be covered and they do not have to worry about renewing their contracts.
• Standard Packages or Custom - Clients can choose between standard coverage or they can customize according to their needs.
• Response – Response time is a major factor in the maintenance contract and a major difference between a manufacturer warranty and a service contract. Eric offers a “4-hour response for mission – critical components, 8 hours for non-mission-critical components and 24 hour for administrative changes.” This limits down time and gets business back up and running fast
• Length of contract – A customer can also specify the length of time they want to cover under the maintenance contract. This allows a company to plan accordingly to project timelines. It also lets a client upgrade to a new or different hardware without worrying that their previous contract is still in play. Eric says that “generally we require a minimum of one year. There is a cost for us to maintain a phone system or computer network and we would like the opportunity to recoup our expenses, especially if we have to replace any equipment.” A rule of thumb is that the longer the contract, the less the monthly cost of the contract. Venture Communications offers up to 60 months but these can be renewed and we will cover the equipment for as long as the customer wants the equipment covered.”

Eric concludes that “each feature (of the contract) has been included to insure that our customer gets the most out of their system with the least amount of thought to that system.” He continues, “The big idea here is our perspective on the maintenance contract – it is mutual relationship. On one side it represents the customer’s obligation to send us a check every month.” This is one thing that most customers look at first “but on the other side, our signature on the bottom of the contract represents our commitment to our customer.” So, if we have a service call from a customer, or non customer with a contract will get priority every time.” This point highlights the vast difference between a manufacturer’s warranty and a maintenance contract.

So the next time you think that a warranty is enough to ensure your companies system; think again. A service maintenance contract may be your best option.

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