Are you tired of lengthy phone bills from traditional landlines, which cause financial strain on the business? VoIP phone systems can be the solution to your problem.
Businesses experience average savings between 50% and 75% when switching to VoIP, one of the most cost-effective communication systems.
The VoIP system reduces the requirement for traditional phone lines and associated infrastructure costs. It also offers lower long-distance calls and simple maintenance that reduces operational expenses.
When considering VoIP’s price, it’s essential to factor in the immediate cost savings and long-term benefits of enhanced efficiency and scalability.
In this article, we will go over everything you need to know about VoIP pricing for your business.
How much does the VoIP cost?
| Users | Number of lines | Average Cost per line(per month) | Average Cost per User (per month) | Best for |
| 2-10 | – | – | $25 – $30 | Small businesses/startups |
| 10-50 | – | – | $25 – $40 | Medium-sized businesses |
| 50+ | – |
–
|
$25 – $45 | Larger organisations |
| – | 1-10 | $14 – $17 | – | Small businesses/startups |
| – | 40-45 | $15 – $35 | – | Medium-sized businesses |
| – | 50+ | $10 – $30 | – | Larger organisations |
VoIP (voice over Internet protocol) is a cost-effective part of business communication systems. A VoIP phone can cut the cost of the communication system by 45% compared to a traditional phone system.
The basic cost of a business VoIP phone can vary from $25 to $45 per user monthly. These prices can differ based on several factors, such as your company size, required features, and service plan.
Once the business selects its service plan, you must pay a certain amount for the installation and after the installation.
Let us dive a bit deeper into this pricing of the pre-installation and post-installation costs.
Pre-installation
The pre-installation cost is a one-time investment needed for the business to activate the VoIP service. VoIP solutions consist of hardware and software. The software is provided by the VoIP provider after the plan is purchased. However, a business must purchase hardware for the smooth operation of VoIP services.
The cost of the hardware and its setup fee are two parts of the pre-installation. So, how much do they cost?
1. Equipment cost
VoIP is easily accessible with just a computer or laptop and a dependable internet connection as the only necessary equipment.
Some large companies can get a more professional setup with the help of additional equipment like a desk phone and adapter. Depending on the quality of the equipment, the cost can range between $60 to $500.
2. Setup and maintenance
Setting up the VoIP phone system is simple. It involves opening an account, activating the plan, configuring settings, and adding users without the need for additional setup by others.
The physical infrastructure of the VoIP requires cabling for the setup. Additionally, regular maintenance is necessary to ensure its smooth operation. In the event of any technical issues, a professional technician may be required, incurring a cost of approximately $30.
Post-installation
After the installation is finished, the VoIP users are required to pay certain fees for regular access to the VoIP service. The payment system is based on the per-line cost and per-user cost.
Per line cost is a fixed rate for each phone line connected to the service. Each line represents a separate phone number or extension that enables making and receiving calls independently.
On the contrary, per-user cost is a charge based on the number of extensions or users using the service. The VoIP provider offers each user with access to a set of features and functionalities, such as call management tools, voicemail, and conferencing.
The VoIP provider structures the payment plan based on the per-line or per-user cost, which varies monthly and yearly.
1. Monthly Plan
The monthly plan is a certain monthly fee the business must pay to use the VoIP service. With the monthly subscription plan, the business has the flexibility to scale its communication system. Small businesses looking for flexible and adjustable communication expenses may find monthly plans suitable.
2. Yearly Plan (Annual Plan)
The yearly plan is a subscription-based model in which the business may choose to pay an annual upfront fee for access to VoIP phone service. Compared to monthly plans, yearly plans offer discounted access to all VoIP services.
This plan is suitable for businesses with high call volumes. It is budget-friendly and provides uninterrupted access to communication tools and support services for an entire year.
Looking for ways to upgrade the business communication system with VoIP? Experience seamless connectivity, clear voice quality, and unparalleled customer support with NSWIT Support. Make the switch to VoIP today.
Despite such clear pricing, there are certain hidden charges that can increase your bill amount.
Also read: How to set up VoIP phone system for small business?
Is there any hidden cost of VoIP service?
VOIP services may have additional costs and service charges, which can result in additional billing expenses and budget overruns.
Every VoIP user should know these costs to tackle those unseen expenses. Let’s find out all of the hidden costs of VoIP to help you save those extra prices for VoIP.
Taxes
Taxes are one of VoIP’s common hidden costs. The government collects them as telecommunication tax, regulatory fees, and GST. These taxes depend on your business’s location and the phone number you use.
Many pricing plans do not mention the exclusion of such taxes, which later appear as an additional charge in the bill.
According to the tax summaries, the GST tax rate for telecommunication in Australia is 10%. Therefore, it is essential to inquire about potential taxes before purchasing any plans.
Addition of Features
VoIP providers allow access to basic features like auto attendant, call recording, call forwarding, etc. However, sometimes, the business phone system may require additional features to meet its specific goals.
Businesses may not be aware that adding such features can cost an extra fee. Therefore, it is essential to evaluate the features and requirements of the VoIP plans and determine the additional features your business requires.
Integration
Many businesses require the integration of their existing systems with tools like customer relationship management (CRM) software, call analytics tools, video conferencing platforms, and workflow automation systems.
These integrations require upgrades and customisation, which may result in extra costs. The cost of integrating these systems into a VoIP setup can vary depending on the specific software or service being integrated.
It is essential to evaluate your business’s integration requirements and be prepared for the additional cost of these features.
Cancellation fee
Cancellation fees are hidden costs incurred at the time of termination of the service. The VoIP provider charges this fee to compensate for the potential loss with early termination. These fees are calculated based on factors like the duration of the contract, the number of users or lines subscribed to, or the cost of equipment provided by the provider.
Many VoIP plans do not disclose these fees, which can lead to unexpected expenses when a service is cancelled.
Before signing any contract and committing to the plan, ask about the pricing in detail, including the cancellation fee, to avoid unwanted expenses.
What factors affect VoIP phone system costs?
VoIP pricing plans are generally straightforward, with a clear breakdown of installation expenses and ongoing subscription fees. However, additional charges due to required system adjustments are always possible.
Unlike hidden fees, these potential costs are transparent and expected. By understanding these factors, businesses can optimise their VoIP phone system costs.
Internet upgrades
For the VoIP system to operate smoothly, businesses may need to upgrade their existing internet connection to high-speed access. While these upgrades represent an additional expense, they are essential to ensure the VoIP system’s optimal functionality. Investing in a better internet connection, such as NBN (National Broadband Network), helps avoid issues like dropped calls or poor call quality.
Service level agreement
The service level agreement is the quality control contract between the VoIP provider and the business. It is a testament to the VoIP provider’s assurance of quality and reliability to the business.
The agreement guarantees the provider’s commitment to high uptime and call quality. These services require extra infrastructure and dedicated support, which results in additional costs.
These costs can be counted as an investment in your business as they ensure priority support and adherence to agreed-upon service levels.
New hardware cost
The VoIP phone system gradually requires upgrading or additional hardware procurement. The cost of this upgrade depends on the type and quantity of equipment needed and the specific requirements of the upgrade.
These types of hardware upgrades can improve the performance and support the additional features of the VoIP solution.
It is necessary to consider your budget and requirements carefully before purchasing the new hardware for the business.
Support and maintenance
While the initial setup of VoIP is user-friendly and doesn’t typically require assistance, ongoing maintenance and support are necessary for the system.
A technical IT support team assist with hardware maintenance, software updates, and troubleshooting. These types of maintenance help to operate the system smoothly, although these kinds of support come at an additional cost. Regular upgrades and maintenance of the system can help the VOIP system perform at an optimal level.
International call rates
The VoIP system offers national and international calls. Despite being an internet-based system, international calls cost a bit extra due to tariffs imposed by different countries’ telecommunications regulations.
Large businesses with extensive international call requirements should include this expense in their VoIP expenditures. Consider the international call needs and check the associated cost with the VoIP provider.
Toll-free minutes
Some small and large businesses use toll-free numbers to help customers reach their business. The customer does not have to pay any charge for the call, as the company pays for calls based on the minutes used.
While these calls can improve customer service, they incur higher VoIP costs. Businesses should determine the expected call volume and usage patterns to find the appropriate toll-free minutes for their needs.
VoIP providers often offer packages with a certain allocation of toll-free minutes included. However, exceeding these limits can result in additional charges.
Also Read: VoIP vs Landline: Which Is Best for Your Business?
Tips to Get the Best Deal On VoIP Service
VoIP business costs are an investment for the company. However, before investing in VoIP, businesses should consider different things to get them at the best price. What are these steps? Let’s find out.
- Research Providers: Explore multiple VoIP providers to compare pricing, features, and customer reviews.
- Understand Your Needs: Assess your business requirements to determine the essential features and capacity you and your team need from a VoIP system.
- Consider Bundled Services: Inquire about bundled services or package deals that combine VoIP with other communication, integrations or IT services for additional cost savings.
- Look for Promotions: Keep an eye out for special promotions, discounts, or introductory offers from VoIP providers that can help you save on setup or monthly cost.
- Read Contract Terms: Thoroughly review contract terms and conditions, including setup fees, monthly subscription rates, and any hidden costs or charges.
- Ask for Custom Quotes: Contact VoIP providers directly and request custom quotes tailored to your specific business needs to ensure you’re getting the best value for your money.
Why is NSWITS the best VoIP provider?
Now that you are all set to get a VoIP business system, NSWIT Support is one of the quality VoIP providers in Sydney.
We have over 12 years of expertise in offering VoIP and IT services to both large and small enterprises.
But why should you make us your VoIP providers?
- Quality: Enjoy clear and crisp audio for professional communication.
- Scalability: Easily adjust your VoIP services as your business grows.
- Features: Access voicemail, call forwarding, conferencing, auto call attendant, and more for efficient communication.
- Cost-effectiveness: Save money with our lower call rates and minimal hardware requirements.
- 24*7 Support: Get reliable assistance and maintenance for smooth operation 24*7.
Conclusion
Businesses can benefit by leveraging efficient and cost-effective VoIP technology to improve their communication systems. This technology offers transparent pricing structures, reduced infrastructure costs, and simple maintenance.
The VoIP system is generally affordable, with costs ranging from $25 to $45 per user. However, it is essential to be aware of potential hidden costs, such as tax and cancellation fees. Understanding these factors and following these tips can help you get the best VoIP deal. So, take your time, evaluate your requirements, and choose the right plan accordingly.
If you are still having trouble choosing a VoIP plan, contact us now. Our team of professional IT experts is here to help you and guide you through the plans and processes tailored to your business requirements.
