The Total Telecommunications Solution
When you purchase or lease purchase telecommunications equipment, you are in the telephone business and you assume the risks and responsibilities associated with the ownership and operation of that system. Inter-Tel understands these risks and provides our equipment through a comprehensive service and support program that protects you from the uncertainties associated with management of today’s advanced technology.
With our TotalSolution Program you can focus your attention on your business, while secure in the knowledge that your requirements for an effective telecommunications system are being met, both now and in the future. Mitel provides you with a peace of mind that can not be obtained through conventional cash or lease purchase options, and does so knowing that it is not a good business decision for a customer to acquire a telecommunications system through conventional purchasing.
In developing the TotalSolution program, all costs associated with the operation of your communications system have been considered. With TotalSolution, you will know exactly what it will cost you to maintain, operate and expand your system. And, these costs are fixed for up to eight years, regardless of what the costs of equipment, labor or money may do! With TotalSolution, you are always protected!
Your Total Solution agreement includes :
* Full Service and Warranty
* Guaranteed Rates for Expansion
* Free Software Upgrades
* Full Disaster Recovery Protection
* No Penalty Obsolescence Protection & Recast Flexibility
* Risk of Loss Coverage
* Risk of Loss Coverage for Software Viruses
* System Training
* Discounted System Relocation
* Guaranteed Renewal Options
* Flexible Contract Terms
Total Solution Benefits
Full Service and Warranty: Your fixed monthly payment includes full service, parts and labor for the full term of your lease - and the renewal term. When you sign your TotalSolution contract you know exactly what service will cost, without escalation, for up to eight years.
Guaranteed Rates for Expansion: You are provided with a list of equipment that can be added to your contract, at any time, at a fixed monthly rate. The rate, which includes all installation charges, maintenance and other TotalSolution provisions, remains fixed, regardless of the number of months remaining on your contract. When you add to a conventional lease contract, the leasing company will calculate the monthly rate based on the current interest rate and the term remaining on your contract. With all other factors the same, your monthly payment for the add-on will increase because of the shorter remaining term. For example:
The above chart shows the effect of adding a phone midyear in each year of your contract. For this example, the purchase price is $413. In a traditional lease purchase, as the remaining term decreases, the payment added to your lease payment increases from $10.77 to more than $70 per month. The TotalSolution fixed monthly rate is $19.52. The TotalSolution rate does not change even as the end of the term gets closer.
Free Software Upgrades: Any time during the term of the TotalSolution Program, you can upgrade to the latest production level of the System Software at no additional charge. This upgrade is at your request and there is no limit to the number of times they can upgrade during the TotalSolution term or renewal (that's 8 years). This covers the software, labor to install the software and re-program the system in its pre-upgrade configuration.
Disaster Recovery Provision: A current copy of your System database will be maintained off of your customer site. Should you have a catastrophic loss, the System and Software are immediately replaced under Risk of Loss and, with the current database maintained off-site, you can be re-installed, re-programmed and back in operation as quickly as your environmental conditions permit.
No Penalty Obsolescence Protection& Recast Flexibility: When you purchase or lease purchase a system, you lock yourself into the current system’s capacity and technology. TotalSolution effectively manages the risk involved with potentially upgrading the system in the future.
If Mitel develops a system that requires a full forklift upgrade of your current system, Inter-Tel Leasing, Inc will relieve you of any financial obligations on the current TotalSolution program, so long as at least 24 payments on the current agreement have been made to Inter-Tel Leasing, Inc.
In addition, should you elect to add a substantial amount of Mitel equipment to your agreement, we offer the ability to recast your TotalSolution back out to the original term, to minimize the impact on your monthly payment.
Risk of Loss Coverage: On average an insurance policy charges $1.50 per $1,000 of value per month for insurance. On a $10,000 system, this would be a $15 per month additional cost when you purchase or lease purchase your system. Additionally, all commercial insurance policies have deductibles and, in essence, have no insurance at all.
With TotalSolution, we assume risk of loss for the equipment for the full term of your agreement. No additional insurance is required. You pay no deductibles in the event of a loss. None of your time or money is spent filling out tedious insurance forms.Your damaged system or equipment is replaced immediately at our expense.
Risk of Loss INCLUDES Software viruses - The same provisions on the Risk of Loss provision are extended to include the software on the system. With the TotalSolution, damage to the software is no different than damage to the equipment. It is covered under the risk of loss provision.
System Training: We provide training on the use of your system, to all of your employees throughout the entire term of your agreement. Any time you increase your work force, or should someone just need a refresher course, simply pick up the phone and call us and training arrangements will be made.
Discounted System Relocation: Should your company decide to relocate in the future, your Mitel Exclusive Business Partner will extend an automatic 30 percent reduction off our standard move rates to our TotalSolution Customers.
Guaranteed Renewal Options: Upon completion of the TotalSolution contract, you will be given the option to renew for an additional 36 months at 50 percent of your then current monthly payment. All benefits from your original contract are locked-in for up to eight years!
Flexible Contract Terms: Mitel stays financially committed to you, for the full term of the lease including the renewal term. Mitel handles all of the administration, billing and collecting of these contracts. If you should have a question about your lease contract or an invoice, you will contact a Mitel employee for assistance, not some disinterested third-party leasing company.
Aside from the many benefits outlined above, TotalSolution also meets all of the F.A.S.B. 13 (Financial Accounting Standards Board) criteria qualifying it as a true operating lease. Such classification allows you off balance sheet financing as well as tax benefits, which can be outlined in detail by your CPA or Tax Accountant.
When considering a phone system, it is vital to consider the total cost involved including the equipment cost as well as the ongoing operating costs. Most vendors show you the acquisition cost only, and neglect to mention the cost to operate and expand your system after the initial purchase. If your vendor is talking only about the cost of acquisition, you are not being given the whole picture.
As the diagram illustrates, if you purchase or lease purchase a system, it is important for you to consider the cost to operate your system after the initial purchase. In many cases these costs can ultimately equal or exceed the original acquisition cost. With TotalSolution, these concerns are non-existent as you will know exactly what it will cost you to maintain, operate and expand your system, for up to eight years!
The benefits provided by our Total Solution Program are endless. The program has steadily grown since its inception more than 20 years ago, and currently 80% of our customers are under a Total Solution contract. Its impact has been so significant that many of our competitors have tried to duplicate it, though none have been successful. It truly is one of those unique programs that offers a win-win for all involved.