VoIP Phone System: How to Calculate the Cost

If you’re a regular reader of our blog, you’ll already know that VoIP is the way to go. But how much money are you willing to spend on it? The VoIP phone system you choose matters. So does the vendor. But some businesses get so caught up in selecting the right system and the best vendor that they never consider the price they must pay to acquire their ideal VoIP Phone system.

It isn’t enough to account for the initial cost of procuring the phone system. You must also consider the long-term costs associated with the technology. Once you know the sum your new phone system will demand, you can determine whether or not your business can afford it.

But what exactly does the total cost of ownership for VoIP entail? You are normally encouraged to keep the following in mind:

1. First of all, before delving into the nitty-gritty of VoIP and its long-term cost, you must consider the upfront costs. What will you spend at the start to procure an ideal VoIP phone system?

Think about the hardware you need, be it headsets and webcams or routers and computers. You should also consider the price tags associated with each vendor whose phone system has piqued your interest.

Keep the payment policies and options in mind. Is it cheaper to pay monthly or annually? Are you buying your equipment or renting it? Smaller businesses might prefer the rent option because they lack the funding required to make outright purchases.

This stage is actually quite direct. Just look at the price tags attached to every single item, service, and package you need. It won’t take you long to calculate your upfront costs.

2. Buying your hardware and software is just the first step. Once you have your phone system components, you must install them. You need a technical consultant that can design and implement your system, configuring the various hardware and software elements.

Some businesses prefer to hire additional consultants to oversee this process. Depending on your field and the skill level of your staff, you might have to bring experts on board to show them how to use your new system.

This will cost money and you must account for it in your calculations. How long does it take to install the phone system? Do your consultants charge a flat rate or an hourly fee? Does the vendor provide implementation services?

How long will it take to train your employees and how much money will that cost as well? Most vendors and technical consultants are more than happy to provide you with quotations once you ask. And once you have these figures in place, you can use them to determine your implementation costs.

3. Once your VoIP system is in place, how much money will it cost to run it? VoIP isn’t free to operate. You must pay for voice and data plans. Depending on the hardware or cloud-hosted VoIP phone system you have on-site, you should also consider the impact factors like cooling and power have on your utility bills.

Don’t forget the maintenance. Do you have a technical expert or staff to oversee maintenance or are you planning to pay freelancers on a regular basis to do the work?

4. VoIP systems require regular updates. How frequently will they happen and how much will they cost? Upgrades are supposed to improve your system’s security, efficiency, and reliability. You cannot ignore them. However, they have financial costs associated with them.

VoIP is a more cost-effective system than legacy communication mechanisms. But you need to ensure that you budget appropriately. Otherwise, your company could bite off more than it can chew.

Find out more about our VoIP phone systems, and if you have questions about the best system for your needs, please contact us.