Anyone looked at Yealink DaaS - Device as a Service
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@JaredBusch said in Anyone looked at Yealink DaaS - Device as a Service:
Umm $432 - $225 = $207. Just WTF.
I see no WTF here at all. It's a great profit margin (and frankly it's better than great because you know they aren't paying $225/phone. But as mentioned by Dustin - they are hedging against the need to replace the phone at least once during the life of the phone.
Question - what happens at the end of 3 years? Do you have to keep paying? or do you just own the phone? I know with cell phone companies back in the day - you just got hosed and kept paying, and the cell company just kept raking in that much more money! I'm guessing the same would be true here. How many are going to upgrade to a new phone just because 3 years have past? Hell, I still have digital phones here that are more than 20 years old. Why replace a phone if there isn't some desperate feature you need or the phone dies.
That said - we've had our VOIP phones now for just over 10 years. For the past 4 years (that would make the phones 6 years old) every time we have a power outage, we seem to loose 1-4 phones. The power outage two weeks ago - lost one phone. But did we loose any digital phones? Nope, not a one has ever been found dead following a power outage - weird. Is power delivery that different on CAT 3 (digital) that different from POE? or are the electronics just that much more sensitive?
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@Dashrender That's $432/year/per phone. Every year. Over 3 years you'd pay $1296 for a phone.
The WTF is why would anyone sign up for that when the phone is only $225 on amazon once.
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@Dustin
@JaredBusch said in Anyone looked at Yealink DaaS - Device as a Service:
Now, the price? Wow, not worth it. The only one listred with a cost is the s705 at $12/month for 3 years. Math people... That is $432 over the term of the contract.
Let's see $12/m * 36 months (that's 3 years in months) = $432 over the life of the 3 year contract.
Pretty sure my post was OK math wise.
of course, this is only the cost of the phone, not the phone service.
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@Dashrender said in Anyone looked at Yealink DaaS - Device as a Service:
@Dustin
@JaredBusch said in Anyone looked at Yealink DaaS - Device as a Service:
Now, the price? Wow, not worth it. The only one listred with a cost is the s705 at $12/month for 3 years. Math people... That is $432 over the term of the contract.
Let's see $12/m * 36 months (that's 3 years in months) = $432 over the life of the 3 year contract.
Pretty sure my post was OK math wise.
of course, this is only the cost of the phone, not the phone service.
Dur. . . yeah Not sure what I was thinking just then lol. . . .
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@DustinB3403 said in Anyone looked at Yealink DaaS - Device as a Service:
@Dashrender said in Anyone looked at Yealink DaaS - Device as a Service:
@Dustin
@JaredBusch said in Anyone looked at Yealink DaaS - Device as a Service:
Now, the price? Wow, not worth it. The only one listred with a cost is the s705 at $12/month for 3 years. Math people... That is $432 over the term of the contract.
Let's see $12/m * 36 months (that's 3 years in months) = $432 over the life of the 3 year contract.
Pretty sure my post was OK math wise.
of course, this is only the cost of the phone, not the phone service.
Dur. . . yeah Not sure what I was thinking just then lol. . . .
When I was looking at leasing printers versus buying them outright, paying nearly 100% more for the unit itself seemed very common. i.e. printer cost $600, after 3 years of payments my out of pocket spend was nearly $1200.
The vendor is financing this, so they are charging you a finance fee in addition to the cost of the device. Is it seemingly high? maybe... I know that lease interest rates are frequently pretty damned high. -
@Dashrender said in Anyone looked at Yealink DaaS - Device as a Service:
@DustinB3403 said in Anyone looked at Yealink DaaS - Device as a Service:
@Dashrender said in Anyone looked at Yealink DaaS - Device as a Service:
@Dustin
@JaredBusch said in Anyone looked at Yealink DaaS - Device as a Service:
Now, the price? Wow, not worth it. The only one listred with a cost is the s705 at $12/month for 3 years. Math people... That is $432 over the term of the contract.
Let's see $12/m * 36 months (that's 3 years in months) = $432 over the life of the 3 year contract.
Pretty sure my post was OK math wise.
of course, this is only the cost of the phone, not the phone service.
Dur. . . yeah Not sure what I was thinking just then lol. . . .
When I was looking at leasing printers versus buying them outright, paying nearly 100% more for the unit itself seemed very common. i.e. printer cost $600, after 3 years of payments my out of pocket spend was nearly $1200.
The vendor is financing this, so they are charging you a finance fee in addition to the cost of the device. Is it seemingly high? maybe... I know that lease interest rates are frequently pretty damned high.Well that is a part of the issue, this is just the cost of the phones. Not the service plan to support the phones, which is on top of the $12/month cost.
So that price may be much more based on whatever the service costs.
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@DustinB3403 said in Anyone looked at Yealink DaaS - Device as a Service:
@Dashrender said in Anyone looked at Yealink DaaS - Device as a Service:
@DustinB3403 said in Anyone looked at Yealink DaaS - Device as a Service:
@Dashrender said in Anyone looked at Yealink DaaS - Device as a Service:
@Dustin
@JaredBusch said in Anyone looked at Yealink DaaS - Device as a Service:
Now, the price? Wow, not worth it. The only one listred with a cost is the s705 at $12/month for 3 years. Math people... That is $432 over the term of the contract.
Let's see $12/m * 36 months (that's 3 years in months) = $432 over the life of the 3 year contract.
Pretty sure my post was OK math wise.
of course, this is only the cost of the phone, not the phone service.
Dur. . . yeah Not sure what I was thinking just then lol. . . .
When I was looking at leasing printers versus buying them outright, paying nearly 100% more for the unit itself seemed very common. i.e. printer cost $600, after 3 years of payments my out of pocket spend was nearly $1200.
The vendor is financing this, so they are charging you a finance fee in addition to the cost of the device. Is it seemingly high? maybe... I know that lease interest rates are frequently pretty damned high.Well that is a part of the issue, this is just the cost of the phones. Not the service plan to support the phones, which is on top of the $12/month cost.
So that price may be much more based on whatever the service costs.
Granted I haven't looked at the web page at all - I agree, the $12/m is just for the phones. So paying nearly 100% over the cost of the hardware for both the leasing interest fees AND 3 years of hardware support on that phone doesn't seem outside the realm of likeliness. i.e. This seems reasonable - or at bare minimum, if not reasonable - at least typical. Now, if you lease 10+ phones I would start expecting a discount on this pricing, heck, I'd expect one at 5 phones.
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And at the end of this rental program you don't even own the phone.
"Phone rentals are not a rent to own program"
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So this is a "Rent forever" program. Which okay. . . but there had better be some great support for these phones when they die.
Because at this price I'd be better off just outright purchasing the phones as required and saving the added cost.
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@DustinB3403 said in Anyone looked at Yealink DaaS - Device as a Service:
So this is a "Rent forever" program. Which okay. . . but there had better be some great support for these phones when they die.
Because at this price I'd be better off just outright purchasing the phones as required and saving the added cost.
I completely agree - and I did ask above if this was a rent forever, or rent to own type of thing (though not in those words).
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bwhahah
And you are forced to pay for return shipping at the end of your contract. . .
"and Customer is responsible for all costs related to packing and shipment of the phones to Sangoma’s return center at the end of the rental period."
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@DustinB3403 said in Anyone looked at Yealink DaaS - Device as a Service:
bwhahah
And you are forced to pay for return shipping at the end of your contract. . .
"and Customer is responsible for all costs related to packing and shipment of the phones to Sangoma’s return center at the end of the rental period."
totally normal!
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@Dashrender said in Anyone looked at Yealink DaaS - Device as a Service:
@DustinB3403 said in Anyone looked at Yealink DaaS - Device as a Service:
bwhahah
And you are forced to pay for return shipping at the end of your contract. . .
"and Customer is responsible for all costs related to packing and shipment of the phones to Sangoma’s return center at the end of the rental period."
totally normal!
Sure, but it isn't a normal cost you'd see if you just bought phones and wanted to replace them a year or 3 later.
You'd either sell them outright or dump them in a dumpster.
Therefor the cost of the phones are going up even more!
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@Dashrender so even if it only cost $10-15 one time to ship all of these back, that doesn't include the soft cost of packaging the phones up, scheduling a pick up, having insurance on the shipment etc etc.
So the $207 on top might be more like $222 on top of Amazon pricing per phone.
That's a lot of money even for just a handful of phones.
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@DustinB3403 said in Anyone looked at Yealink DaaS - Device as a Service:
@Dashrender so even if it only cost $10-15 one time to ship all of these back, that doesn't include the soft cost of packaging the phones up, scheduling a pick up, having insurance on the shipment etc etc.
So the $207 on top might be more like $222 on top of Amazon pricing per phone.
That's a lot of money even for just a handful of phones.
Dude - I'm sold on the idea that this is a totally DUMB idea to get roped into. That said - some people are just so cash poor that they will opt for renting the phones anyway.
assuming you have the upfront cash, or can get a loan - outright buying all the phones, and a few extra to leave on the shelf will likely save you a significant amount of cash in the long run.
One thing you haven't taken into consideration though - is the time value of money. Putting yourself out there for purchase price up front - what will you not be able to buy - what investment will you not be able to take advantage of if you don't have this cash ready to go? Just something to consider.
For something like 5-10 phones, this is likely not that huge of a thing, though Scott might still argue that $2250 isn't a small amount to many SMBs, I kinda think anything less than 10K is pretty much a non issue for an SMB, but perhaps I'm crazy.
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One thing you haven't taken into consideration though - is the time value of money.
But I have. It takes moments to do the math that this is a bad idea. In any case we're discussing a business who is installing a new phone e system and phones.
So the business has the money, but would it be better to expense with however many thousands upfront? At least in my business they would opt to make the spend today, and then they'd write it off over the usable life of the equipment.
With that, yes it's still a capital expense. And hopefully that expense was planned for and already budgeted.
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@DustinB3403 said in Anyone looked at Yealink DaaS - Device as a Service:
One thing you haven't taken into consideration though - is the time value of money.
But I have. It takes moments to do the math that this is a bad idea. In any case we're discussing a business who is installing a new phone e system and phones.
So the business has the money, but would it be better to expense with however many thousands upfront? At least in my business they would opt to make the spend today, and then they'd write it off over the usable life of the equipment.
With that, yes it's still a capital expense. And hopefully that expense was planned for and already budgeted.
That had been the typical situation here until recently. Much to my utter amazement we've leased two pretty major pieces of gear - CT machine and our entire printer fleet. I know in the case of printers, we'll be saving money over what we were paying our previous provider, the purchase option might have saved us a small amount, but we would have to have taken out a loan, and the interest would have made the end spend nearly the same.
