Until about two years ago, problem solving at Rite Rug Co. Inc. presented a bit of a glitch itself.
If a customer changed his or her mind about an order at the last minute, the company had to page the installers and wait until they found a phone to call back. Once key employees left the office, they were out of touch. If the installer ran out of carpet on a job, he or she would have to hunt down a phone to report the problem.
Now, the company has a better, easier way of communicating. It’s providing cellular phones to more employees — nearly 70 — many of whom spend most of their time in the field, instead of the original dozen or so.
“It started out we were going to give the phones to all people in management and a few of the office workers,” says Todd Simmons, Rite Rug’s IT manager. “But it really became a great tool in that almost all of our employee installers now have cellular phones, and now we’re starting to give them out to our subcontractors.
“That, I think, has affected us most in problem solving and trouble shooting.”
Staying connected
In May 1998, Simmons started shopping around to expand the company’s cellular service. He settled on Nextel Communications Inc., finding more favorable rates there because of a service the company offers called Direct Connect.
Using a two-way radio concept, Rite Rug’s cellular users are able to communicate with each other with the touch of a button. In some cases, Rite Rug has restricted cellular phone use for people who only need to use the two-way radio — a method cheaper than making a cellular call.
Glen Flowers, Southern Ohio general manager for Nextel, explains use of the Direct Connect system is similar to pulling up a name in a cellular phone. A three- to five-digit number is programmed into the phone for Direct Connect contact. By pushing one button, the user can talk to the other contact.
“Currently our range goes from Cleveland to Pittsburgh to Cincinnati up to Lima through Columbus,” Flowers says.
Typically, customers purchase a plan that includes unlimited Direct Connect usage, a factor Simmons likes because he knows he has a set rate each month.
Direct Connect also allows users to talk one-on-one or with up to 100 co-workers at the same time, Flowers says.
Through use of another Nextel offering called the Columbus Business Network, Rite Rug can expand its Direct Connect communication beyond its own employees. That means Rite Rug employees can communicate with representatives of clients such as Crossman Homes, Joshua Homes and Qualstan by using Direct Connect instead of making a cellular call.
“For example, if Rite Rug is working on a big commercial job and coordinating with other vendors on the same job, they can instantly communicate with others on that job site,” Flowers says.
The phones also allow Rite Rug to hook into the private cellular networks of M/I Schottenstein Homes Inc. and Maronda Homes Inc.
“We just bought a phone and got it connected to their network,” Simmons says.
The line on savings
Of the approximately 47,000 minutes Rite Rug uses each month, about half are Direct Connect. On average, the company is paying 10 cents per minute for its total usage, Simmons says.
Choosing a service plan from Nextel, Simmons says, involved sitting down and evaluating what each person in the company would need and selecting different rate plans.
“Our sales managers have more minutes than, say, our installation manager or one of our inspectors or repair guys,” Simmons says. “Everyone does have the Direct Connect, but you can vary the cellular service quite a bit. It’s pretty flexible.”
Flowers says the majority of Nextel’s business customers take advantage of packages that include Direct Connect rather than just cellular.
Cost savings, he points out, are hard to measure because of the various packages offered and the individuality of each company’s usage. He gave one example, however: In December, the company’s Performance Plus 300 plan cost $64.95 per phone per month and included 300 cellular minutes and unlimited Direct Connect. Supposing a company has 10 users who average 600 minutes apiece, it could benefit if 50 percent of the time employees’ communication was to co-workers within their company.
“They are able to, with a 300-minute package, double their amount of cellular minute use and talk within their organization unlimited for $649.50 per month plus taxes and any applicable long-distance charges,” Flowers says.
“Direct Connect is so cost-effective that businesses have gotten out of the mentality that they need to hang up or wait until they get to a land line phone,” Flowers says. “They’re using their phones as a business tool, which is what they’re intended to be, rather than just a luxury item.”
Joan Slattery Wall ([email protected]) is associate editor of SBN Columbus.
