Archive for the ‘Cost Saving’ Category
Product of the Month: Cisco WS-C4506 switch
Friday, July 2nd, 2010What Makes A Successful Company?
Thursday, April 22nd, 2010In economic downturns like the one we’ve experienced over the past two years, very few companies survive. Without a highly volatile economic environment, more than half of the new companies that open their doors each year will be out of business five years down the road. When times get tough and unemployment rises, the companies that manage to stay in business and weather out these tough financial lows must be doing something right, right? Right!
So what sets apart a company that can stay in business for 20 years from one that will be forced to close shop after three? There are a few things you can do that help your odds of staying afloat.
1. Broaden your portfolio.
What happens to many companies is that they specialize in doing one thing and doing it well. When the economy is booming, that’s a great plan. Finding a niche and being the biggest fish in a small pond works. But when times get tough for customers, if you’re specializing in a product that they don’t need, your product will be the first thing they cut out of their lives to save money. You need to broaden the number of services or products you sell to keep people ‘needing’ you. For example, MULTI-LINK Communications Products is an L.A.-based company that provides networking hardware to businesses. The company has been around since 1995 and is still going strong despite the fact that many of their business customers have gone out of business. How? “We don’t just offer new components,” explains Eric Tanaka, President of MLCP. “We also sell refurbished hardware for much less so many of our customers who were used to purchasing everything new and at a premium from the distribution chain, came to us to save money when their budgets started to shrink.” Several companies that offered only new products, went under. Finding a way to broaden the services and products you sell can keep sales high when the demand for a specific product declines.
2. Watch Your Inventory
Excess inventory can sink a ship that’s barely floating. Tying up cash in too much inventory is like locking your money in a cage and throwing away the key. Inventory that sits, takes up space (which also costs money) and prevents you from investing in inventory you could be selling, or improving your cash flow. Keep an eye on which products are sitting too long and which ones tend to move. Keep everything moving in and out as quickly as possible and you give yourself the most flexibility to make decisions as difficult financial times hit.
3. Accounts Receivables Can Save the Day
Don’t be afraid to collect the money you’re owed. You need it. Stay on top of accounts receivables and make sure reminders and invoices are sent out on time. Not everyone will pay you on time, but sometimes, it’s simply a matter of receiving a bill in a timely matter to start that ball rolling in your customer’s accounts payable department. Consider offering discounts to companies who pay within 15 days of receipt which can be done in the form of credit toward another purchase or an adjusted invoice. Giving customers a financial benefit for putting your invoice on the top of the pile can make a big difference to your bottom line.
How to Sell Surplus Networking Hardware
Friday, April 9th, 2010If you’ve recently upgraded (or downgraded) and now have some used networking hardware that you no longer need, what should you do with it? Sure, it’s probably depreciated but throwing it out not only means tossing money away, but it’s also harmful to the environment.
Recycle it? Yes, of course you could do that but you might be able to sell it and make a little cash.
How? On ebay? In a classified? You know you wouldn’t drop hundreds to thousands on equipment from some source you didn’t know was reliable and risk not only harming your network but also being scammed. Neither will anyone else. So how do you unload it?
The best way is to find a reputable alternative hardware provider like MULTI-LINK Communications Products. Trusted by thousands of customers who buy new and refurbished networking hardware from them every year, they have a pool of people ready to buy. They also guarantee anything they sell– including used components– for one full year, sometimes more. This is actually better, in some cases, than what the manufacturer will guarantee the same part new.
But will they give you a good deal? You have a couple of options. You can straight sell them your equipment, or you can trade it in for a credit toward something else. Trading equipment in is usually the better way to go. Because they’ll also get you as a sales customer, companies often give better deals on equipment traded in than equipment simply purchased.
What if you don’t need new (or used) equipment?
Save the credit for when you do need it. Be sure to check with the company and see how long the credit will be good. Some companies will offer it indefinitely. You never know when you’re going to want to buy some surplus transceivers or fan trays to have handy in case the one installed goes out. Or watch for specials on the components you’d really like to have– a new telephony system, a security appliance, etc.– and when the right product comes up at the right discount, jump on it.
The worst thing you can do is simply toss the equipment out. Talk to MLCP, or a similar company, about any non-profit organizations they sell to and see if you can donate your used equipment to that company for a tax write off. Most companies will be more than willing to be the liaison because it helps their non-profit customer.
How to Find a Discontinued Cisco Component
Saturday, April 3rd, 2010You know exactly what you need, but unfortunately, Cisco no longer manufactures it. That’s a problem. Especially if you need the component immediately and you don’t have the cash to migrate to the new replacement product. The good news is that you don’t need to. You just need to think outside the box.
The component you need is most likely out there, and can be located by one of the few alternative Cisco providers like MULTI-LINK Communications Products. This company, along with a couple others, specializes in providing their customers with new, used, and hard to find Cisco products, including those which the manufacturer deems as obsolete. Because these companies have access to components all over the globe, they can find exactly what you need. They also maintain large inventories of hard to find networking hardware which allows them to ship same day much of the time.
Will used equipment be a problem?
No. A reputable company will test refurbished equipment to factory specifications and use an equally reputable shipping company to ensure your component arrives safely. In addition, a reputable provider like MLCP will warrant the new or used component for one year or more, which in most cases, is actually longer than the manufacturer will guarantee the same product new.
Will buying from someone other than Cisco negate my service contract?
You should check your agreement, but in most cases no. Cisco will obviously not cover repair to the component you didn’t purchase from them, but it won’t negate the contract or service to the rest of the components. If it’s deemed that a network problem stems from the used equipment, you would simply call the provider from which you purchased the component and they would send you a replacement if it’s still under warranty.
Should I just bite the bullet and migrate to the newer replacement?
Honestly, it depends on your future needs and your pocketbook. More often than not, the replacement component is ready for upgrades or has a higher functionality than its predecessor. But if your needs are limited to the obsolete component, there’s no real reason to spend the additional money for something you don’t need if you weren’t already considering an upgrade. On top of that, used equipment, or even new equipment through an alternative provider, can save thousands of dollars in initial costs.
Three Ways to Make Network Hardware Affordable
Sunday, March 28th, 2010You need a network upgrade and you know it’s going to be expensive. You dread hearing how much it’ll cost to buy and install the hardware, but you know your company really needs it to run effectively. Here are some ways to minimize your out of pocket costs when upgrading your network hardware:
1. Know how much money you’ll save at the end of the first year by doing the upgrade. How much at the end of the second year? Fifth year? Does the savings outweigh your initial investment? Not sure? Then consider leasing the equipment with an option to buy it. This allows you to ‘try out’ the equipment without making a real commitment and pay over time. Ultimately, if you do buy, you’ll pay more than if you’d bought it outright, but if it turns out you don’t need it, you’ll have saved yourself a lot of money and kept cash in your pockets.
2. Buy pre-owned. There are several reputable alternative dealers out there that can get you used (and new) equipment much lower than you’d pay through the distribution chain. Some even offer better warranties than the manufacturer and because they’re smaller than the manufacturer, they’ll be a lot more flexible in working with you and making sure you’re happy. In most cases, purchasing equipment by an alternative provider won’t have any negative effect on your service contract with the manufacturer as long as the product is third party OEM. Check your service contract first, but more often than not, the manufacturer will still provide maintenance and repair service, but won’t repair or replace the part you didn’t purchase from them. In that case, you simply go back to the dealer you purchased the component from and they’ll replace the part.
3. Trade in surplus equipment for a discount on anything new. This is a second reason to consider an alternative provider. The manufacturer probably won’t buy your equipment back, meaning you’ll have to go to an alternative provider (or some other source) to sell you used equipment. If you’re also buying from the source, they’re more likely to give you a better deal– higher trade in credit than they would simply buying your used equipment when they won’t be making any money from you.
Three Ways to Acheive a Sustainable Network
Wednesday, February 17th, 2010Industry directives, laws, and rising energy costs are causing companies that rely on IT networks to find ways to make their networks more green and sustainable. Small changes can make a significant difference but many business owners don’t know what to look for our how to begin. We’re here to help.
There are three key areas that can help you attain a more sustainable network.
1. Efficiency of Operation
A network’s ability to provide collaboration services not only minimizes the time multiple employees spend on efficient processes, but helps to reduce overall power use and increase effectiveness. Integrated services networks are the key as they tend to be the most productive, and cost less to upgrade incrementally, growing only as the business itself grows.
2. Efficiency of Power Use
The best way to control and limit energy cost and consumption is by purchasing an integrated services network like the Cisco Enhanced 2-port OC12/STM4 ATM OSM+switch. These centrally managed networking solutions require less power to do more work and keep consumption down. Power supplies which have been optimized also help considerably, as does intelligent power management.
3. Maximization of Equipment Life
Upgrading constantly creates hardware waste. A sustainability plan must include networking hardware that can evolve as the business evolves without being replaced by new physical components. An integrated system also helps on this front as the system itself can be retained when pieces of the system are upgraded. For example, you can keep the networking hardware and simply upgrade the software to a better security package if desired.
Why Integrated Networking Systems?
Wednesday, February 10th, 2010Benefits of an integrated networking system come about by marrying core networking functions like switching, routing, Internet services, WAN optimization, and security. When all these features are brought together, the result is more secure communication through unconstrained connectivity; delivery of higher quality real time video, voice, and data; reduced overall operating expenses; and a more manageable, self-defending network.
These network solutions, like the Cisco 12816 Internet Router, are inherently intelligent, integrated networks that adapt to current and future business needs. Because they are highly scalable and managed centrally, these systems give businesses the opportunity to upgrade equipment incrementally, as the company’s needs change– however fast or slow that may be. This also makes these types of networking systems greener and more sustainable than non-centralized component networks.
Like a human body, the different functions work together in an integrated system the way the circulatory system is necessary for the muscular system to work properly. Without blood’s ability to deliver oxygen to the muscles, the muscles can’t properly function. To separate these systems would make the body less efficient, and so it goes with networking systems as well.
How to Make Your Network Pay Off
Sunday, December 20th, 2009Companies often invest thousands, if not hundreds of thousands into their I.T. networks. For good reason. If the network fails, it can literally cripple the business, halting productivity and even compromising secure data in some cases. So with such an important– and expensive investment– how do you make sure your network will pay off and you won’t find the dollars you’re spending wasted on something that doesn’t meet your company’s needs?
First, don’t rely on your own knowledge unless you’re an I.T. expert. Who should you talk to then? A manufacturer? Probably not. That’s like asking a Toyota dealer if he thinks you should get a Toyota or a Honda. Find a reputable company that deals in multiple manufacturers. They want your business and they want you to be happy, plus they have nothing to lose by recommending one brand or product over another the way a manufacturer or distributor would.
Second, plan your growth realistically. We’d all like to think we’re going to double our sales or expand our company in the next year or so, but purchasing a network designed to accommodate more needs than you actually have is a waste of money. It’s also a waste to buy something you’ll outgrow in a year too. So what should you do? My advice is to err on the side of pessimism. Buy only what you need now, but put aside the money you would have spent for the more comprehensive network. You should have some cash left over in case you find yourself needing to switch out a router or add a better security system down the line.
Third, once you decide what you want, shop around. You are not obligated to purchase from anyone and the more you shop, the more you’ll find people willing to come down on price for trade-ins, leases, third party and pre-owned OEM components. Opt for a company that offers a good warranty over one that will try to sell you monthly or annual service contracts. Again, set aside the money you’d spend on the service contract and you’ll probably have the cash to replace anything that needs replacing or fixing after the warranty runs out.
Five Ways to Make it Through the Economic Crisis
Tuesday, November 17th, 2009If you’re a business owner that’s having a hard time toughing out the economic downturn, you’re not alone. Thousands of small businesses are closing their doors because they simply can’t stay afloat and the banks are no longer issuing credit lines and bridge loans. If you’re looking for ways to tighten your company’s belt, here are some ideas that have saved other companies thousands of dollars at a time when they need it most:
1. Sell surplus equipment
If you have surplus networking equipment like telephony or expensive routers and switches that you no longer need because your customer volume never reached the capacity you’d hoped for, get rid of it. Selling surplus equipment can put hundreds to thousands in your pocket overnight and reputable companies like alternate Cisco supplier MULTI-LINK Communications Products will not only give you cash, but walk you through your de-install to make sure you don’t experience any business interruptions.
2. Cut back on expensive perks
Instead of cancelling holiday bonuses which people desperately need right now, cancel a holiday party instead. Instead of having a company dinner or cocktail party, invite everyone to help out at a local food bank for a day and make the event your holiday party. Then take everyone out for a low-cost pizza to celebrate the generous thing they’ve done to help others. Your employees won’t mind and they’ll feel good about what they’re doing.
3. Cut employee costs
No one wants to lay anyone off, but this might be the time to see whether or not all of your employees are really needed and whether restructuring and doling out new tasks is possible. No one wants to take on more work for the same pay but adding in fun bonuses like an employee of the month lunch or a drawing for the best parking space each week can help make working at a job with more responsibility, more enjoyable.
4. Cooperate with other companies
Double up with another company when it comes to giving corporate gifts are doing trade shows and cut your costs by half.
5. Change Up Your Marketing Plan
Although your expensive marketing plan may be working, now’s the time to explore cheaper, alternative marketing options like social media outlets and sponsorships.
How to Choose the Right Router: Three Criteria You Shouldn’t Overlook
Sunday, August 23rd, 2009With literally hundreds of routers on the market, how do you know which one is right for your business? You should choose a Cisco router, or Foundry, or AdTran? Which one will best fit your needs? Buying one with too many features means paying for something you’ll never use. Don’t buy a horse trailer to transport a dog. Buying one without enough features, or that isn’t upgradeable, means you might buy something that in a year or two, needs to be replaced. So what should you consider before committing to a router? We came up with three criteria we feel are the most important:
Is it Upgradeable?
Companies typically grow. Those that don’t, don’t stay in business for long. So the question becomes, how fast will you grow and how soon will your router stop meeting your needs? If you aren’t sure or think that growth may be in your near future, be sure to get a router that has enough RAM and FLASH to meet your needs now, but you can upgrade it at any time. Not all routers are upgradeable. Buying one now that meets your current requirements but that can be upgraded later, is ideal.
Is it Expandable?
Pay attention to the number of WAN and LAN interfaces that the router you’re considering will support. The number will vary and there are some routers that don’t have any. If interfaces are available, then you’ve got a more versatile router to add to later.
Is it Warranted?
Regardless of which router you buy, the most important thing to look at is whether the manufacturer, distributor, or alternate distributor is guaranteeing the product. Most warranties from the manufacturer cover the item for about 90 days. This is standard. It covers anything that could be wrong upon initial installation, but it’s short enough that it entices people into paying for long term service agreements. If you’re buying from an alternate provider to take advantage of the large discounts that they can often provide on both new and refurbished routers, be sure to see what the warranty is. Some are up to a year which is actually a better warranty than the manufacturer. The can offer these longer, more comprehensive warranties because they’re not trying to sell you a service agreement and if they need to replace your router, they can refurbish your old one and resell it– the manufacturer can’t.