VoIP Value: How Much Does a VoIP System Cost?
How much does your current phone system cost? More importantly, how well does it serve your business? Whether you’ve already made the move to VoIP like many companies, or you’re still using a landline, your phone system is a key part of your business — and it probably isn’t cheap.
Since phone systems can be quite complicated, it’s easy to get sold into a system that’s more expensive than it needs to be. Likewise, some phone plans are really cheap, but don’t provide the kinds of features or services to help you effectively handle your call volumes.
So how do you know if you’re getting the best deal for your money? Measure the ROI of your phone system.
When considering a new VoIP phone system, first consider your investment. Look at what you pay on a monthly basis and the cost of any extra features. Then, compare that against the value your phone system provides.
At AccessDirect, we believe a VoIP system is the most valuable choice available to businesses. But don’t just take our word for it. Let’s break down the cost of a VoIP system compared to the money you can save over other systems and how to get the best deal for your money.
What Is a VoIP Phone System?
VoIP stands for Voice Over Internet Protocol, a type of phone system that transfers your voice and the caller’s voice using the internet instead of a traditional landline. With an internet connection, you can use VoIP to make inbound and outbound calls. You don’t even need traditional telephone hardware. However, you can use VoIP with a traditional phone system if you choose (some require an adapter).
Traditional Landlines vs. VoIP
Whether you’re considering switching to a new phone system or purchasing a phone system for the first time, the first choice you’ll need to make is between a traditional landline and a VoIP phone system. Here are some of the key differences:
Landline
- Operates on a telephone-specific telephone line
- Requires some on-premise hardware (i.e. a PBX box)
- Each phone is an individual, physical line connected to the PBX box
- Higher cost
VoIP
- Operates on an internet connection
- No on-premise hardware required (in most cases)
- Each phone is a virtual extension denoted by a number
- Lower cost
Hosted vs. On-Premise VoIP
- Hosted - A hosted VoIP system is one that is hosted by another company (usually the one you pay for the VoIP service). You don’t need any additional hardware at your business location. Instead, the service is hosted on their hardware and maintained by their technicians. This way, you pay a monthly or yearly fee to run the service on your existing hardware (telephones, laptops, etc.) and a WiFi connection.
- On-Premise - An on-premise VoIP is hosted at your location, on your company’s servers and computers. This may require extra servers and some extra hardware, depending on the number of extensions you need. This setup can be beneficial if you want to take more ownership of how your VoIP system operates. However, it can be a serious hassle to set up and maintain, and it usually costs more than a hosted system. For this reason, most people don’t opt for an on-premise VoIP system.
Factor 1: Hardware
Landlines Require PBX Boxes and Tech Staff
For a traditional landline, you’ll first need a PBX box. This is an essential piece of hardware for your landline system that allows for multiple inbound and outbound lines. These typically cost anywhere from $300 to $800, depending on how many lines you need and the quality of the box.
Of course, if you’re buying a new phone system, you’ll need physical telephone stations for each line. Most go for $150 to $300 per telephone.
Keep in mind that a traditional landline is also a complicated physical system. The larger your call volumes, and the higher the number of phone extensions you need for your workforce, the more precarious it becomes. Imagine you have 50 employees, each with a unique phone line or extension. Then, every time you hire someone, you need to add a new line. In the event of a down line (or some other issue that prevents people from reaching you) you could be losing hundreds or thousands of dollars per hour while you wait for repairs.
This is why landline systems for businesses often require on-site telecom technicians to manage the system. These technicians are highly specialized, adding lines, making repairs, and maintaining uptime. However, their wages will likely exceed $4000 per month (not counting overtime, benefits, or employer taxes).
VoIP Systems Typically Require Less Hardware
With a VoIP system, you only need an internet connection to run the core technology. Since you likely already pay for internet service, this won’t be an extra charge. It also doesn’t require any additional hardware to add extra lines, since the extensions are virtual.
However, if you’re buying a brand new phone system (i.e. you have nothing but a computer and internet connection), you’ll need to buy some hardware up front. Whether you prefer a full phone setup (with a dial pad and receiver), a headset, or your cell phone, you’ll need to consider the cost of hardware. Typically, you can expect $150 to $300 per telephone station, if you’re buying new hardware. For additional headsets, you’ll look at $50 to $150 each. Otherwise, if you already own phones and/or headsets, you can simply start using VoIP on that same hardware for no extra cost.
Hosted vs. On-Premise VoIP Hardware Costs
Hosted System Hardware
- Hardware costs: $0 (unless buying new).
- Labor/installation cost: About $50, but sometimes free.
- Phone number porting fee: Some charge a fee of about $12-$25 per number, but many do this for free.
On-Premise System Hardware
Some companies allow you to pay off the cost of the system over several months. This lowers your upfront cost a bit, but an ROI analysis reveals that it may take 8-10 years to see the cost benefits. Even then, you still have the steep monthly bill, salary for a technical support professional, or costly labor hours spent on general maintenance. You’ll also still need to pay for the installation and the porting of old numbers regardless of how you host the system.
Here’s a cost breakdown:
- Hardware costs: $150 to $200 per phone (sometimes much more).
- Labor/installation cost: $50 per phone.
- Phone number porting fee: $25 per number.
What’s the Value?
Landline
On-Premise VoIP
Hosted VoIP
Number Porting Fees
$500 – $1150
+ $25 per phone
$200 – $550
+ $0 – $25 per phone
$0 – $350
+ $0 – $25 per phone
Landline
Number Porting Fees
$500 – $1150
+ $25 per phone
On-Premise VoIP
Number Porting Fees
$200 – $550
+ $0 – $25 per phone
Hosted VoIP
Number Porting Fees
$0 – $350
+ $0 – $25 per phone
Compare All
By using a hosted VoIP system, you could save thousands of dollars on hardware, installation, and ongoing maintenance costs compared to a landline. At AccessDirect, we can work with any existing telephone hardware you already use. Whether you have a system of desk phones or everyone on your team uses a cell phone for business calls, we can make sure your business and personal life are separated with enhanced call routing and auto attendant features.
Factor 2: Service Price
No matter which kind of phone system you use, you’ll pay a monthly bill. Some companies charge a lot, and some are quite cheap. Some have flexible plans that help you get the best deal possible based on your business needs. Understanding the monthly fees associated with your phone system is crucial, however the true value you’ll receive in this area depends on the specific service offering of your provider.
Traditional Landlines vs. VoIP Service Fees
Traditional landlines usually cost around $30 per line per month (for barebones systems), with some companies charging $45 or more. On the other hand, basic VoIP services that offer full inbound and outbound call capability have an average cost of $15 to $30 per extension per month for a basic system. Keep in mind that doesn’t always include any other virtual phone services like auto attendant functionality or call routing.
However, you may not totally need full outbound and inbound capabilities with your VoIP service. Or maybe you’re looking for more services to manage your calls. At AccessDirect, we enhance your VoIP service by providing additional functionality that can be difficult to set up with other providers. Because of this, our pricing model offers more flexibility than the standard per-extension fees of many VoIP services.
For instance, tier 2 of our Direct Receptionist package provides service for 5 extensions, including 1500 free minutes and a suite of virtual phone service features for $39.95 per month. To break it down, that’s only $7.99 per extension.
What’s the Value?
Finding the right VoIP company can save you a lot of money every month compared to traditional landlines. Even with a team of 15 employees, a VoIP phone system could put roughly $200 to $500 back in your pocket every single month. That’s $2400 to $6000 every year in savings. If you have a team that’s larger than 15 employees, the savings only get more dramatic.
This isn’t even counting the cost of long-distance calling, which you can usually do for no extra cost with a VoIP system.
Factor 3: Additional Features
The value of a VoIP in terms of hardware and monthly service is only half of the picture. To truly understand the value of a VoIP system, you need to consider the additional features an internet-based phone can provide.
Most landlines only include standard inbound and outbound calls. With a landline, you will likely need to pay extra for additional configurations, and it won’t be very cheap.
A VoIP system allows you to implement several call management features, such as:
- Call Forwarding and Routing: Route calls to a cell phone or different departments, and extensions automatically. Make sure you can answer calls from any location, with custom call sequencing and scheduling.
- Auto Attendant: Rather than hiring someone to answer the phone all day, you can streamline caller experiences with a virtual receptionist system that greets customers and efficiently directs calls to the appropriate department or extension.
- Unlimited Voicemail Storage: Since VoIP operates in the cloud, voicemail messages are easy to store. Voicemail is usually provided with VoIP at no extra charge.
- Voicemail Transcription: Enhance communication efficiency by converting voicemail messages into text. This allows you to quickly read, categorize, and prioritize messages without listening to each recording in full.
- Dial-by-Name Directory: Allow callers to reach specific people within your organization by entering their name on a keypad. Create a full, searchable extension directory without a physical switchboard operator.
- Fax to Email: VoIP systems also make it easier to send and receive faxes using your email address or an app, depending on the service provider you’re using.
- Professionally Recorded Greetings: Create a friendly and polished first impression for every caller. First, we’ll help you write your auto-attendant script or voicemail Create a friendly and polished first impression for every caller. First, we’ll help you write your auto-attendant script or voicemail greeting from scratch (or using one of our templates). Then, our trained specialists will record your greeting with professional equipment in our studio.
- Music on Transfer: Holds and transfers are often inevitable. Provide your callers with a welcome music break when you send them to a different extension. This is just one more way to project a high-end image for your business.
What’s the Value?
At AccessDirect, all of these features are included for no extra charge with any plan you choose. But these features aren’t just nice to have. They can also save you a ton of money in the form of:
Hired Employees
Labor Hours
Time
Factor 4: Customer Support
Like any tool, a VoIP is only as valuable as you make it. It isn’t just about the hardware, the monthly fees, or the powerful features. You need a VoIP service provider that helps you use all of these to the best effect. You need a VoIP system backed by excellent customer support.
However, many traditional landline companies take a careless approach to customer service. They try to avoid giving you the help you need because they know their technology is outdated. They know you can get better service elsewhere for a much lower price. When you call for help with your landline, you’re just another ticket in their system.
At AccessDirect, we take a different approach to customer support. Your business means something to us, so we help you save time and money in any way we can. Our customer support team is here to help you set up every single aspect of your phone service. That way, you can get back to doing what you do best: serving your customers. If you need anything (a new greeting, new call routing schedule, or help sorting through any technical VoIP-related issue), AccessDirect is here to help you overcome any challenge.
When you bring us any request, we will:
- Make sure it’s possible
- Work out the logistics
- Set it up correctly on your behalf
What’s the Value?
As a small business owner or solopreneur, you may not have time to figure out your phone system yourself. You just need one that works. Even if you don’t have a technical background, you can tell us what you need and trust that we’ll make it work — on our time.
Most importantly, we treat your business like an extension of our own. When you call us for help, you’ll reach someone who knows your operation, what you need, and how your world works. You’ll talk to someone who knows and cares about you.
That kind of support is hard to put a price on.
Final Thoughts
The bottom line: VoIP phone systems can save you a lot of money. Some studies suggest businesses who switch from a landline to a VoIP system can save 70% overall on initial setup and monthly fees. Based on the value assessments we’ve shown here, it’s clear that a VoIP system can save you thousands of dollars every year compared to other solutions. With a VoIP system carefully tailored to your business, you’ll face less maintenance, less hassle, and lower upfront/per month cost.
At AccessDirect, we offer hosted VoIP services with tons of additional features. With one of our flexible business plans, you can find the exact setup that works for your needs. But we extend the value of VoIP well beyond that. We believe excellent customer support is the only kind of service worth providing. We’ll do everything within our power to help you get all you need out of your VoIP system. We treat your business like it’s ours, carefully managing your phone setup so you never have to worry about how it’s working.
That’s the value of knowing someone has your back.
Get a free trial today and experience the convenience of AccessDirect. Or, call us and learn more about how our services can save you time and money.