RHM have seen a big shift in the last 18 months in how mobile contracts are being set up. RHM can bill and manage mobile contracts across all 4 UK carriers including Vodafone, O2, EE and 3. In the past, contracts would be bundled up including the hardware or a pot or credit on account to spend on hardware over the life of the 24 month contract. What this drove was a never ending 24 month cycle of contract review and replacement hardware regardless of whether the business actually needed to replace the hardware at that point. Labelled often as FREE hardware or credit, of course, nothing ultimately in business is FREE and what actually happens is that the airtime rental is massively inflated to cover the cost of the hardware over the life of the 24 month contract.
What we are now seeing is a shift to unbundling this arrangement putting control back in the hands of the customer. Many contracts we set up today now involve separating the airtime contract. This means the monthly rental is much much lower often 50% lower. RHM also offer flexible terms on the airtime: 30 day, 12 month or 24 month. The hardware is then purchased separately or finance which RHM can offer.
Many companies now sweat their hardware harder and simply change out units on a business case basis or when they actually need replacing. RHM now have an online Mobile shop via our website and many customers use this to purchase their hardware on account. This is also very useful for those clients still preferring a credit account to draw down on for hardware as this is all tracked online via the shop system.
When clients manage their estate in this way RHM can offer different financing options. We can arrange a finance agreement when clients want to refresh all their hardware in one go. We have flexible terms in that we can do the standard 24 month agreement or extend that up to 36 months if required. If clients are looking for the latest iPhone or Samsung devices not only can we supply them but we can offer residual finance. This is similar to car leases where clients want to change their hardware regularly we can do a 24 month agreement with finance that is 25% less. Then at the end of the agreement, they either hand the hardware back or pay the 25% for title of the goods. This works well for companies who want to upgrade regularly but keep their monthly budget as low as possible.
If you’d like to find out more then do get in touch and we’ll be happy to answer any questions you may have.
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