Saving Money: Two Way Radios and Return on Investment
By: Eric O'Connor
Saving Money: Two-Way Radios and Return on Investment.
Every business needs reliable communications to function properly and I'm not even talking about anything hi-tech here. If two cans on a string work for you, then congratulations, you've found exactly what you need. At least it'll be easy for you, should you decide to upgrade your system in the future. Just finish off another can of corn and hook it up.
However, (refer to my other article: "What You Should Know Before You Purchase a Two Way Radio" for more information concerning my dreaded "howevers")...now, where was I? Oh yes, HOWEVER...for most businesses, a can on a string will not do. The good news for you is that there are so many options out there; it would be very hard not to be able to find a system that's perfect for you.
Your two main options are, or at least the options that will be discussed here are: Two-Way Radios and Cell Phones. They both have their advantages and disadvantages, depending on the type of business you're in. You probably already knew that; but you're reading this article to find out exactly what those advantages and disadvantages are. You're in luck, because I'm going to share some of them with you. In the interest of brevity, this article won't include all I'd like to say. If you'd like more information, stay tuned until the end for contact information.
Cell Phones:
To begin, we will look at cell phones. Today, some cell phones even have a walkie-talkie feature. This has bridged the gap between cell phones and two way radios, but there is still a lot of space in between. Currently, cell phones are the closest thing to the 'ole can on a string analogy mention above.
If you only have a few people working for you and they are sometimes on the go, cell phones are great. Usually, they're pretty cheap to buy and maintain. If you get the phones for free, the only thing you'll really have to worry about cost-wise is the monthly fee, say $40-$50 per month per phone roughly. For reliable communications, this is a small price to pay.
If you have 5 or more people working for you, I would begin to look for other solutions aside from cell phones. The reason for this is not because I have something personal against cell phones. Rather, it is because cell phones have something personal against us and it's already been mentioned: monthly fees.
Not to name names here, but one provider of walkie-talkie cell phones charges roughly $50 per month for the first phone and around $30 a month for every additional phone on your plan. If you have 10 people working for you, you may have gotten your cell phones free from the provider, but over time they will certainly make up the difference. You're paying around $800 per month, a whopping $9600 per year and that's assuming you never once went over on minutes. Ouch, talk about a waste.
Monthly-fee issues aside, there are a few other things to consider concerning cell phones. The first one is a minor issue that can easily turn into a major issue. Cell phones, unlike two way radios, can be abused. Users can call whoever they want, racking up minutes that could end up costing you. There's also a productivity issue with this as well. As workers are racking up minutes calling mom to make sure everything's okay, what are they not doing? They're not working, and even if they are working, they aren't paying much attention until after that call is done.
In addition to productivity issues, there are control issues. A lot of business owners like to have control. I mean, it's probably one of the reasons they've started a business in the first place. One thing cell phones don't give you a lot of is control. You have no control over what kind of customer service you get, and from what I've heard it's sometimes very poor. You also have no control over your system if it were to die on you and you have no control over when the phone company will be able to get it up and running again. (Are you sick of reading the word "control" yet?)
Summary:
So, where do I stand with cell phones? The truth is I don't stand anywhere with them. Don't get me wrong here, either. I deal with two way radios but I do admit to more than a few occasions where it makes more sense to use a cell phone. For personal use, they are the best. For business use, they can work very well, depending on the type of business. Smaller businesses will find them more practical and possibly more cost effective than alternatives but larger businesses will no doubt require more from their communications.
Two-Way Radios:
After looking at what cell phones can do for you, it's now time to look at one of the alternatives, two way radios. Just like cell phones, sometimes it makes sense to use them, sometimes it doesn't. As per my mention earlier, if it's just you and Frank the assistant manager needing to communicate, use a cell phone. I've said this before and you may be asking yourself why. Are small businesses not worthy of two-way radios? Of course they are, but here's why I say what I do.
If your company wants to use a two-way radio, you must first purchase a license from the FCC if you do not already have one. The licenses are typically a little under $500 depending on your situation and are good for 10 years. For two people, this may not be worth it. However, for medium to large companies, this is worth every penny and can actually end up saving you hundreds if not thousands of dollars per year.
Let's continue to use the example I gave you above in the cell phones section. Say you have 10 workers needing to communicate. Your cell phone system will be costing at least $9,600 per year and let's say you need this for about 4 years, which is very typical, especially since cell phones require contracts. Over 4 years, your communications system has cost you $38,400.
Now, let's say these 10 people are to be given the 4 channel Motorola CP200 UHF model. The average price out there is around $400, you can contact me for a more exact price if you like. 10 people get 10 radios at $4,000 plus we'll say $450 for an FCC license, which over 10 years is only $45 per year! So, not only will you save about $34,000 over 4 years, but think of everything else you'll be getting as well.
For starters, you get your control back Mr. Business Owner. You have purchased the radios and the license; therefore you control your airways. The only way the system will crash is if your radios crash and Motorola radios typically last at least 7-10 years. Heck, there are radios still in use older than me and I'm in my mid-twenties.
You also don't have to worry about poor customer service because you've probably purchased your radio from an authorized dealer. Unlike phone companies, most dealers have actual live human beings answering their phones. Plus, you're connected to a consultant whose job is to work with you every step of the way to ensure your satisfaction...someone like me.
Summary:
There are features that many two way radios have that cell phones do not. These features can be pretty important for most business owners and dispatchers, such as priority scan and stun, but we won't go into deal about that here. Contact me if you would like more information about any of these features. Also, just as cell phones have added a walkie talkie feature to catch up with radios, radios have now begun to go digital. Digital means it has the ability to send more information, such as text messages; once again bridging the gap.
If you're still undecided on which way to go, do a simple ROI calculation. Calculate how much it would cost to have cell phones over a 2-4 year period and how much it would cost to have two way radios over the same period. In most instances, it's more cost effective to buy radios. However, as I've said before, cell phones have their place. You're best bet would be to contact an authorized two way radio dealer and explain your situation. Then, after you're armed with knowledge and you do your ROI, you can make a smart choice. Thanks for reading!
About The Author:
Eric O'Connor is a communications consultant for Delmarva Communications. If you like to contact him, his e-mail is: e.oconnor@delmarvacom.com. Or, visit Delmarva Communications on the web at: www.delmarvacom.com. I look forward to hearing from you soon!