No company should ever pay shortfall penalties to the carriers.
G2 has the precedents to know what the carriers are willing to concede to when attempting to apply shortfall penalties. The reality is, carriers attempt to use volume commitments as a ploy to offer better rates. Through our experience as former carrier negotiators, G2 has the Insider Knowledge to dispel what the carriers want you to believe. Volumes and price points are not linear. When a client is facing shortfall penalties, G2 will stop the carriers from applying those penalties based on the precedents we have, establish a commitment that is appropriate for the client’s volume of business and most likely reduce costs. G2 can accomplish this because we have the instant and full credibility with the carriers to establish that the volume commitments enforced were inappropriate in the first place.
The fundamental argument is a simple one. No one knows your volumes better than the carriers themselves so why would they allow you to over commit yourself?
- Carriers use shortfall penalties as leverage to force you into a new bad deal
- Commitments are arbitrary and should not be imposed for better pricing
- We are a source of precedents to hold the carrier accountable for their inequitable correlation between price points and commitments
- We have seen countless carrier contracts that have the same price points as yours with half the volume commitments
- We have the experience and credibility to hold the carriers accountable for imposing commitments on you that were improper
- The carriers know your usage and spend volumes better than you do
For more information on G2′s capabilities in this practice area please contact us.