We are heading to tough economic times. This calls for tough measures like reducing cost by canceling some of the services that add no value yet they cost the company. It is the background the company could still publish without the toll-free service.
The community-based media company works as a non-profit organization. Although the service was of help to get information, the board of management made a unanimous decision to opt for paid-in telephone service for the same purpose.
Although cost was the main reason for this there are many other reasons. They include
- Community misuse
- It needs other media platforms to reach the target audience
- Network issues
- Power failure challenges
- Irrelevant information
The initial business set up of The Daily Elk Citian newspaper heavily relied on the community to gain roots. The only option at that time was the toll-free numbers. Its main objective was to
- Gain community trust in their business goals
- Get unbiased information from all over the state
- Allow community participation in the project
- Gain business roots to boosts sales
Yes, it was a brilliant idea but for short-term business goals- objective achieved. Take note, other marketing strategies worked to their advantage and the toll-free function now became a redundant service.
It means they had to pay for maintenance and installation of the hardware yet it had minimum value to the newspaper firm.
What was the cost of the toll-free service?
The company cannot quantify the cost of the VOIP service but it ran to millions. When you look at the annual business income for the media company, it is far less than that. It indicates that it is running to losses.
The Directors felt that instead of sinking to more debts and cost implications, they had to look at some of the best ways to cut on cost. The toll-free service is one of the services that were temporarily stopped. Others include
- Salary pay cuts
- Reduction of employees
- Merging of functions to reduce staff
- Use of digital tools to reduce production costs
- Use of an operator line to reduce unnecessary inbound and outbound calls
Although the move came as a shocker to the staff and community; it was timely. We appreciate the fact that the toll-free telephone service was effective for the business. However, its absence has minimal effect since there are options that are far much better than it.
- Enhances customer interaction with the employees
- People used it as a fast form of communication to get media attention
- Increased sales through its business marketing approach
- Offered the community the right 24-hour customer service support
- The voice mail service option enhance productivity through call-back option
- Reduced operation costs
- It’s expensive to install the hardware and software component
- The free service encouraged community misuse yet the company pays dearly for it
- You had to use other media platforms to boost sales
As much as the current effect of the service looks unfair, the long term benefits are significant in the growth of the newspaper business. Do all media companies have a toll free service? If no, are they making profit or losses? The profit margins are high. This is the business concept that Baressi wants the company to incorporate as part of their enterprise operations.