Pure Comms MD Rob Vivian believes that telcos need to stop offering low-cost services,
claiming the industry ‘can’t go any cheaper’.
Vivian says the unified comms dealer operates an ‘executive service’ for its customers, explaining that more businesses should follow this approach. He argues that companies should respect their products enough to charge a high price for them
He said: ‘People do not pay enough attention to telecoms in their business, they see it as a cost. We are at a very challenging point in the industry where people are looking for cheap, and to be honest it can’t go any cheaper.
‘If companies don’t value their own products then what does that say about the way they are running their business? In five and a half years we have only lost one customer. We have customers coming to us, asking to reduce the price, and we have said no. It’s a race to the bottom, the telcos are all busy trying to slash their prices to be the best value, and one day they are going to think ‘we’re not making money any more’. The typical costs of running a telecoms business have increased but customers will continue to expect prices to stay low.’
Vivian explained that there ‘aren’t enough people putting value back into the industry’, claiming that it’s difficult for Pure Comms to stand out in a market that targets low prices.
He said: ‘When we say to people that they should be paying more, because telecoms is a serious business, it is hard to get people to look for more than a cheap price. It puts us in a difficult position because Pure Comms has got 4,000 competitors all saying the same thing. There aren’t enough companies trying to build value back into the industry.
‘How companies communicate with their customers is extremely important – if they are not doing it properly then their competitors will be. Our competitors tend to attract customers by focusing on a price-per-minute rate and focusing on cost. We have a very competitive offering; we are not a cheap company but we are a premium provider that integrates with mobile to deliver a high-end service to our clients.’
Describing his business model as ‘radical’, Vivian explained that telecom companies that try to compete in the carrier market will fail. He explained that by focusing on delivering high-cost services, the dealer offers a completely different proposition.
He said: ‘We have a radical business approach by making the customers pay for a high-quality service. Any telecoms company that tries to compete with the big carriers will not be able to succeed, they will not be able to offer the same commercial solution. Pure Comms is an executive service – if a client is approaching us to talk about reducing costs, we are the wrong people to be speaking to.’