Businesses have been using “Mobile Technology Funds” for a long time. When a business takes out a phone contract it is given a “virtual pot of money” by the airtime company. This is commonly known as a “mobile tech fund”. This fund is used to buy mobile phones and air time without having to make additional payments. We all knew that the air time prices were inflated so that phones could be acquired for “free”. As the cost of the devices has risen in recent years, this model has started to creak. Hiding the cost of the phone in an airtime contract, just like any hidden cost, is rarely in the consumer’s best interest. Of course, it’s been very much in the mobile phone networks’ interest to keep this going for as long as they possibly can.
However, the Tech Fund is now a seriously outdated and flawed model and one that fails on many fronts.
- The cost is both high and it lacks any transparency. It’s highly unlikely that you would allow this in any other part of your business.
- The actual phones are rarely discounted – in fact you can guarantee you are paying top dollar for every device. Again this does not exist in any other part of your organisation where costs are carefully controlled and supplier prices compared.
- Whilst a Tech Fund sounds like a useful way of acquiring phones for your staff, it’s a bad idea if you do not know the real cost of that money.
- There is a tremendous lack of competition. In fact, there is no flexibility at all as all the devices are locked to one supplier.
- The resale value of the phones is massively compromised. A phone locked to one provider loses a great deal of its potential value when you come to sell it on.
- Not surprisingly, it is not in any of the network’s interest to change this very lucrative model.
- So to answer the question, what’s wrong with the mobile tech fund? Well, everything it would appear!
Best way to finance mobile phones for your company.
So if a tech fund is the worst way to finance mobile phones within your organisation, what’s the best way?
Well, put simply, business owners literally want the exact opposite of the mobile tech funds model described above.
They want to know how much their phones and their airtime are costing. Purchase managers need to know both the fixed cost of the phone devices and the variable cost of the airtime. They want to be able to get discount deals on the devices and they never want to pay the full asking price. Knowing the actual cost of borrowing money from the fund is also essential. And let’s keep the value of the old phones as high as possible by not having them tied to one network.
So, at Innovent we do all of that. We also throw in two very important additional benefits that you may not have considered.
These days, every company wants to demonstrate it’s green credentials. It wants to show the shareholders and the customer base that it cares about the environment. That’s where we come in. Innovent, unlike all other companies really want your mobile devices back when you’ve finished with them. We will recycle those devices and get them working in environments where refurbished phones have real value.
Here’s the best bit. This value will be passed on to you meaning lower costs month on month. Lower monthly costs and green credentials make for a very powerful business case.
Finally, in this “Air Time Contracts” model I have just described. Here at Innovent we also finance the purchase of the phones so instead of having to worry about large upfront costs you have one low cost monthly payment.
Mobile Tech Funds versus Mobile Airtime Contracts.
The savings using a “Mobile Air Time Contract” in place of a “Mobile Tech Fund speak for themselves. Let’s look at a typical price comparison between traditional “Mobile Tech Funds” and our “Mobile Air Time Contracts”
Example price comparison: iPhone XR 64GB Black (on a 24 Month Contract)
With EE Business using a typical mobile tech fund.
iPhone XR 64GB Black with Unlimited Texts, Unlimited Minutes, 5GB Data.
Total – £41 per month plus a £50 upfront payment (excluding Vat).
With InnoVent Leasing.
Device subscription – £21.90 per month, 3 Airtime contract (Unlimited Texts, Unlimited Minutes, 5GB Data) – £8.33 per month.
Total – £30.23 per month and no upfront payment (excluding Vat).
Ditch the Mobile Tech Fund. Better business phone contracts in a changing world.
There’s no doubt that the business mobile phone requirements in a company have changed dramatically. The cost of a smartphone has risen sharply in recent years. So having so much money tied up in these devices means companies need to look very closely at how they are financed. Clearly, the idea that a company would not get the best possible deal when they buy, nor the best price when they have finished with the device. is no longer acceptable.
Mobile working has completely changed in the last five years. At Innovent, we can show you how to dramatically reduce your monthly phone costs. Our existing customers are seeing savings of as much as 30%. This is an emerging market that cannot be ignored.
- Innovative mobile and technology solutions that save you money.
- Cheaper network contracts without compromise.
- Cheaper device purchase. Lower device costs year on year.
- More choice across all mobile services and networks.
- More flexible mobile contracts designed to serve you.
- Free up your capital for other uses. No upfront fees.
- Higher retained value in the handsets so higher value when you no longer want the device.
- Devices not locked or restricted by fixed mobile networks.
- Massive monthly savings.
- A better business phone contract at every level.
- We also lease other equipment like laptops, desktop computers, servers, in fact, all IT.
Reducing your phone cost without compromise.
The way staff use their mobile devices and mobile data has changed dramatically in the last few years. More expensive phones, increased mobile data usage, device security, the need to have phones that are not locked to one supplier are all drivers for change. But without doubt, the biggest driver is the need to reduce costs. Changing to a Mobile Airtime Contract gives you massive savings without any drop in quality or service – in fact, it will actually improve!
So give us a call today on 020 7123 4570. Ask to learn more about our “Business Air Time Contracts” how they can help your business save money every single month. Alternatively, drop us an email and we will get straight back to you.