Situation: This client is a major east-coast law firm and has enjoyed a nearly decade-long reciprocal business relationship with their Tier-1 long distance carrier. As expected, the vendor provided attractive discounts both proactively and through negotiations throughout their tenure of business. The requirement to conduct a professional and sensitive, yet aggressive negotiation with this business partner was paramount to this client.
During the assessment of this client’s savings opportunity, G2 discovered a major discrepancy in the Lata Pair pricing as part of our invoice net effective rate analysis. The problem occurred for 18 months and as an added value G2 assisted this client in recovering $144,000 in credits – without compensation.
Negotiation: The motivation of the client was to retain their incumbent carrier, but aggressively leverage G2’s expertise to maximize results. Although the current contract was near the end of the term, G2 employed a Right of First Refusal negotiation strategy which enabled the incumbent to avoid a multiple carrier RFP and the possible loss of business. A successful Right of First Refusal negotiation uses a set of carrier rate requirements based upon G2’s knowledge of the leading-edge prices in the market.
An added benefit for our client was G2’s prior experience working with the carrier’s director and vice president-level sales management. Consistent with the manner in which we conduct business, our working relationship with these carrier executives was extremely ethical, professional and resulted in a winning deal for all parties.
Result: G2 conducted the entire negotiation within 6 weeks. This client’s data services (frame relay, international frame relay, MPLS, T-3) made up the predominant amount of current spend and potential savings opportunity. Resultant data savings was 37.58%. Voice services yielded a 21.97% discount with an overall savings of 32.36%. G2 improved all terms and conditions across the board, but particularly strengthened the Annual Rate Review clause to better ensure continued leading-edge mid-term reductions.
This Client’s reciprocal relationship was not affected and was in fact enhanced. The carrier now realizes their customer is educated to the leading-edge prices of the market and has retained the resources to negotiate highly effectively and successfully. These strengths will ensure that more care and consideration will be given to improve and maintain future contract pricing and other important elements.
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