Saying Goodbye to $10K Per Position

Certain measurements in life take root and become a reference point. For example, 12 inches equals one foot or four quarts equal a gallon.

In trader voice,  for as long as I have been doing it, the baseline metric for price-per-position (total purchase price/number of end users) has been $10,000 per position. Of course, this can change based on factors such as system size, configuration and negotiated discount, but, as a rule of thumb, this is as good as any. Note that with traditional turret suppliers this is an “after discount” figure as list prices can be as much as double, especially for small numbers of users.

Since WCS’s founding, one of our fundamental goals has been to put paid to that measurement through innovation. It started with the recognition that the vast majority of traders use a fraction of the capacity of their turret (the average sell-side turret user has 4-5 unique ring down circuits, a small handful of DID, some speed dials and another handful of lines that they may cover for other traders in their group; adding up to a need of somewhere between 20-100 virtual button appearances; the typical buy-side trader needs even fewer).

We also new from experience that a related bugbear for financial trading firms has always been that traditional turrets could not share line appearances with regular PBX phones. This necessitates the investment in a $10,000 turret for anyone who might need to have even a few ring down circuits or trading lines on their telephone. In addition, since traditional turrets do not offer many of the convenience of an office telephone (voice mail comes to mind), this might result in users having a turret and a telephone on their desk.

WCS has really changed all of this. With the introduction of a single platform system we eliminated the limitations associated with sharing lines among turret devices and phones. On our system, all devices are created equal(ly) and have access to lines in the system as well all of the turret and “PBX” features associated with the system.

By introducing a system that gives firms the option to offer dial tone (analog, PRI, SIP trunking) as well as trading turret capabilities in the same platform, WCS eliminated the requirement to purchase, integrate and support two voice systems.

Finally, The Crossover Series, our IP Trading Desktop portfolio, further disrupts the status quo by offering customers a choice of trading devices in various form factors, capacities and prices. Any of these  devices can support dial tone, ring downs, speed dials and pagination/floating answer keys while sharing lines with the 5560 IP Turret.

The price range of the Crossover Series desktop is $750-$2,750. This means that once you determine the mix of desktops and add in the back room elements and services the per position price for our system comes in drastically less than the old metric. And this is compounded to the positive for the customer when calculating total system life-cycle costs as annual operating costs are generally derived from the list price of the system purchased.

Brings to mind the old adage that “change can be  good.”

Date: Friday, 29. April 2011 15:58
Trackback: Trackback-URL Category: Buying A New System, The Turret Market

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