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Voice Communication in Business Volume 1
Essays on telecommunications, 1969-1980

Chapter 12
Those Awful PBX Proposals:
They're Even Worse
Than You Said!

One of the people who came to the BCR PBX seminar thought my ideas were pretty good and should be tried. Here is what happened in a genuine unsolicited testimonial, from the M/A, 1979, BCR.

***

I have recently had an instructive experience in obtaining bids for a private switch. Perhaps my tale of woe might be of interest to those about to embark upon such a project.

Because I have to "live here," and will undoubtedly be re-analyzing our company's position in a couple of years with some of the same suppliers, I must remain anonymous. Let's just say, I live west of the Rocky Mountains.

It all started when the local Bell operating company made noises about deleting Centrex and changing to ESSX. This would have increased our equipment costs over 40 percent, so we felt we had to look at alternatives. I began to read books and attend seminars, including the Business Communications Review seminar on PBX systems conducted by Lee Goeller. Lee's articles on "Those Awful PBX Proposals" became one of my primary guides.

I cannot emphasize too strongly that I experienced all the frustrations in obtaining qualified proposals that Lee has talked about in his articles. What he didn't mention is the number of evasive, incomplete, asinine answers I was forced to give my bosses when they asked about my progress. I dislike being the "village idiot" because the so-called experts have tried to lead me down the primrose path.

I did the usual thing in visiting with people who owned their systems to verify their satisfaction. I always got positive answers about the big dollar savings, better control, and better service, etc., etc., etc. At the same time, when visiting with their secretaries and office help (and gently asking the same questions), I received some significant pauses and evasive answers, so it appeared that some of the users were not as happy as the bosses thought. This, plus sending in a few inquiry cards with the resulting inundation of materials, gave me a feel for what I needed to do.

I prequalified potential suppliers and contacted them. Those interested were invited to come in and visit about a proposal. Each interested supplier was interviewed and offered the opportunity of bidding. The bid submittal date was, in all instances, set by the bidder. The importance of the proposal format was repeatedly stressed to permit an "apple-to-apple" basis of comparison. Additional meetings were set to ensure interpretations and understanding of each bid. Each supplier expressed avid interest and signed a letter setting the proposal submittal date. This letter also outlined, in depth, my desired format and content, and the details requesting a duplication of functions and services currently in operation at our company.

The results were incredible! The following describes the responses of eight different suppliers.

  1. Because of the excellent comments received from a user, I wrote the manufacturer and requested information. I received no reply.
     

  2. This supplier was very interested in bidding and signed the bid letter. I never heard from him again.
     

  3. Shortly before the bid due date, this supplier requested an extension. He stated he had to send East for engineering. The extension time requested was too long, so the request was denied.
     

  4. This supplier submitted a bid, but the documentation and information were so inadequate that the bid was not seriously analyzed.
     

  5. Subsequent to signing the bid letter, this supplier requested we join him in applying to the state PUC to get a reduced tariff on DID trunks. They stated that unless we did this, and the reduced tariff was approved, "it would be an exercise in futility for us to quote you."
     

  6. This supplier signed the bid letter, but subsequently requested a one-month extension, which was granted. No proposal was ever received.
     

  7. Only one private supplier submitted a proposal which could halfway qualify when compared to the requested format.
     

  8. Telco: Both on Centrex and Dimension, I received the usual prompt reply with the expected inundation of information and documentation.

It was impossible to adequately compare the private and telco bids, but conscience dictated that I try to qualify at least one private bidder. I therefore analyzed one private bid (number 7 above) as to equipment, etc., and gave the telco a set of specifications on which to quote. This they reluctantly did, complaining all the time that it was inadequate service. Upon receipt of the additional information, I proceeded to compare.

Printing costs are too high to dedicate the space needed to detail the project. Let me simply say that I wanted to compare "apples-to-apples" and, by much additional information massaging, I ended up comparing "oranges-to-oranges."

The one bid that was analyzed had many significant differences from our specification: the electronic and instrumentation configuration was entirely different than we requested, and the financial data looked like Swiss cheese when analyzed by my financial people. To quote Lee: "When you know what to look for, you become painfully aware of what you don't see."

I could go on and on about the frustrations, wasted time, inadequate information and all the rest. In the end, we decided to stay with our existing Centrex for a couple more years. Having had this experience, I can state:

  1. It was indeed educational.
     

  2. I do not look forward to repeating this project in two or three years.
     

  3. Were I to fault Lee Goeller's writing and statements about the problems and frustration of obtaining PBX proposals, it would be that they actually understate the difficulty.

I have been there, and it's no fun!

A Satisfied Customer

***

In the course of my travels, I ran into a talented young salesman for one of the better interconnect companies. He congratulated me on the proposal articles, but I could see that he was concerned about something. "Well," he said, when I pressed him, "I think you have the right idea, and I try to make proposals the way you say . . but I never had any trouble selling PBXs with the proposals I used to use!" If the emptors won't caveat, there doesn't seem to be much point in trying to custodiet the custodes.

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