A Benefit of the Ratchet™ Rating System
If You Could Increase Your Profit Margins, Would You Replace Your Rating Technology?
Today's telecom market is very competitive. Prices are under pressure and margins are down. But the margins vary on the transactions you sell each day. And this variation can be your savior or your undoing!
If you know the margins you are actually charging, can you adjust your business practices to emphasize the more profitable transactions and down play the less profitable transactions?
If you can detect and adjust rate plan elements that aren't meeting your margin goals, can you increase your average profit margin per user?
Will monitoring your margins increase your corporate earnings and shareholder value?
Are your rate plans so complex that they can conceal rates that fail to meet your margin goals?
Can the underlying costs of your services change over time so that a previously high margin rate plan can end up failing to deliver your margins?
If you know where you are getting better margins than expected, can you increase your average margins?
Will a solution that shows you when services are sold for less than your target margin help you improve company earnings?
If your answer to any of these questions is "YES", then read on!
Our solution, Margin Management By Exception(MME).
Now you can measure the margins of all your transactions while you rate them for billing. With knowledge of your margins, you can adjust your business practices to emphasize the more profitable transactions and down play the less profitable transactions.
When you define a rate plan for a services, you also define its cost plan and your rules for reporting what you decide are too low/too high margins.
Track your margins while rating your services!
Can you measure your product margins on an ongoing basis?
Using MME for each call that you rate, the cost of the call and its margin is also calculated. You get margin reporting records for all the transactions that are not in your target margin zone. You see everything that is too high or too low.
Do your costs vary on a weekly or monthly basis while you are committed to specific prices to customers? Do you resell other company's services?
Using MME, change your cost plan as often as necessary. Store date-based versions of your cost plan that are automatically used based on the date of the transaction. If your retail rates fail to keep up with increasing wholesale costs, you get same day updates as this begins to happen.
See Your High Margin Winners
Do you know what portion of your business delivers margins greater than your target margin? Can you change your marketing and sales practices to emphasize these higher profit services?
Promote and encourage services that have high margins! But, first, you have to know which transactions are delivering high margins.
Track Down Your Low Margin Losers
Do you see when your margins drop below your target goals?
Are you selling services at a lower margin than you intended?
Use MME to slow down or stop selling items that have low margins! But, first, you have to know which transactions end up with low margins. After you know about your low margins, you can negotiate a better price for your underlying services or take steps to lower your own costs.
Don't Spend Time Trying To Find The Problem Areas - Let Them Find You
Can you control your reporting so that you see only the exceptions to your rules?
The "Management By Exception" portion of MME shows only the transactions that you need to focus on. MME shows you only what needs your time and attention. Everything that is working according to plan is ignored.
Learn when any given transaction doesn't meet your expected margins. Every transaction is checked, but only the ones that you select are shown to you. Then you can decide whether the impact of a low margin on a specific type of service is worth the effort to fix it.
When you do ten million transactions per day and only five thousand of them fail your margin test, you might decide to do nothing. But you're making that decision today and doing it today. If the low margin rate continues to grow, you can act today rather than waiting two months for a typical accounting and reporting cycle to alert you to the problem.
How Hard Can It Be
Imagine a rate plan that covers calls from anywhere in the world to anywhere else. With calls from more than two hundred countries to two hundred other countries, you can have more than forty thousand unique rates. If you buy call termination/origination services on a weekly or monthly basis, the underlying costs for your rate plan are constantly changing. Ratchet's MME monitoring highlights your problem areas and your success areas.
This scenario is not unusual in the voice over IP (VoIP) market or the prepaid calling card business.
What You Can Do Today
Call Service Level LLC today at +1 734-827-2000 or email us.
The team at Service Level LLC has been providing rating solutions for customers worldwide for more than twenty years. Click here to learn more about the Service Level LLC history.
By changing your rating software to the Ratchet Rating System you can rate and cost all your services. Sure, you can calculate the cost of your services using other tools, but MME delivers these results on a daily basis so you can manage your business for better earnings.
Send us a rate plan and the costs for that service. We will implement your rate plan and its cost plan to show you how your business can continuously measure your margins to increase your profits. You'll be able to see it for yourself.
So don't delay. Find out how to improve the margins in your business by clicking on the following link or by calling our rating services staff at +1 734-827-2000.
We look forward to helping you increase your profits!
Service Level LLC provides the Ratchet™ Rating system to support the needs of both the new Internet oriented marketplace as well as the traditional circuit switched marketplace. We realize that the traditional services still provide the largest part of the world's communications requirements.
The components of the Ratchet™ Rating System
You can learn more about the Ratchet Rating solution at. The product and its implementation support team make a success of your implementation. You can contact our representatives at