The following charts assume an average traditional long distance rate of 3.5 cents per minute and a average wholesale rate of 2.31 cents per minute with the standard 5%markup. The savings is the difference between the traditional long distance and the buying group wholesale rate plus the government mandated user fees and taxes. Government mandated fees, Federal, and State taxes are approximately 20%.

5%recurring membership recruitment incentives can turn telephone expenses into a profit center on your financial statements. Give us a call or click on the email link below to schedule an appointment to see how the program can benefit your company.

How can PrimeTime provide this savings and still make money? First, the buying group membership offers tremendous savings, while at the same time leveraging the billing system and the agreement to eliminate the need for excessive accounts receivable and product pricing management. Cost plus guarantees a modest profit on actual long distance network costs. Because of the program’s synergies, profits increase on the membership side of the business.

Pricing analysts are expensive commodities. The best pricing analysts cannot guarantee a profit on every account due to the variability of complex access rates long distance companies must pay to originate and terminate calls on the local network. Cost plus eliminates the need for pricing analysts and the required markup in a product to support that position. Five percent mark up on Long Distance network cost creates a product that has the best demographic profile of any product on the market because price reflects cost geographically and the modest markup maximizes the population of prospects that would benefit from membership in the CPN and wholesale cost plus program.

Product managers are reduced to one versus the traditional model where each type of call has a product manager. One manager for the CPN and the 5% markup is self managing on the long distance product level.