Office phone systems are continually being updated and improved, which can lead you on a never-ending quest to have the latest and greatest technology. These systems can seem daunting at first, and figuring out exactly what you need will take some research.
Before you can decide what is right for you, it’s essential to consider the costs associated with a new phone system! Switching to a new system doesn’t mean it will be more expensive; in fact, sometimes it can save you money.
Now, I’ll be honest; I won’t be giving you one fixed price in this article. Each office is unique, and you can adapt phone systems to work in many different configurations. So figuring out an exact one size fits all price is nearly impossible. What we can do is give you the average costs associated with some modern-day phone systems.
There are two main types of phone systems, hosted and on-premise. The first thing you will need to figure out is what system you would be looking to use. There is no right or wrong answer. Each system has different benefits and costs associated with it.
Typically with a hosted phone system, you are looking at a lower cost upfront but a higher cost over time. However, an on-premise system has a higher initial investment, but the overall costs can be lower.
What Goes Into the Cost of a Phone System?
There are a variety of factors that will determine your final price. Phone systems are highly customizable and complex, but there are some average prices you can expect systems to cost.
How Much Does Hardware Cost?
Once you decide if you are using a hosted or an on-premise system, you will need to decide on the hardware
How Much Does the Device Cost?
How many phones do you need? Are they standard desktop phones, cordless, hybrid or wireless phones? Do you want them to be IP phones?
If you want to buy standard desktop phones, you could expect to pay approximately $350 per phone. The more advanced the hardware, the higher the cost.
It would be best if you also considered what accessories you could need with your phone.
Will your team be spending much time talking on the phone? Consider also investing in a wireless headset. For a good quality wireless headset, you are looking at about $325 each.
Unlike most other technology, where you start with a base piece of equipment and add on whatever features you want or need, office phones typically come loaded with a suite of excellent features. Your option is to pare back features that you don’t see yourself using or select a phone model with reduced features.
Some of these popular features include:
- Unified messaging
- Caller queues
- Extension dialling and company directories
- One-button transfer
How Much Does a PBX System Cost?
In addition to the phones, many office phone systems rely on a PBX system. A PBX is a piece of hardware that makes your phones work and would be typically be housed in your office.
The average PBX system is $4500. This price can fluctuate based on the type and configuration.
If you are looking at using a hosted-cloud service, pricing can be an all-in Cloud price per user or can have a shared resource price with VoIP hardware.
How much is a phone line?
Depending on your phone system setup, you should also factor in the budget a cost per phone line. Typically each user will have to have a phone line, and these have a monthly fee associated.
Regular phone lines range from $20 to $50 each per line, per month, or $240 to $600 per year.
These phone lines are purchased from a local telecommunications provider (ex. Bell or Rogers) and can be purchased independently of your hardware.
Alternatively, when purchasing a new office system, you have the option to move to a more advanced system that runs on SIP (Session Initiation Protocol) lines rather than traditional phone lines.
One of SIP lines’ vital cost-saving features is that they are a shared resource, meaning that each user can have a unique phone number without requiring an individual phone line. The average cost of a sip line is also anywhere from $20 to $50 but you don’t need an individual one for each user. For 10 users you might only need 6 or 7 SIP lines, compared to 10 traditional lines.
Many businesses will reduce their monthly phone bill by as much as 30 percent after making this switch.
What about Installation?
When installing a new system, there will also be some labour costs associated. These costs include the programming and installation of your new system! Office phone systems require a particular skill set to ensure it’s set up and working correctly.
While these costs are sometimes bundled into your overall plan, you should still expect to pay for a service technician to set you up.
These costs vary depending on what service is needed and what you are looking for specifically.
If you are looking at installing a new PBX, the associated costs for programming and installation can be between $1200 and $3000.
A New Phone System Could Save You Money
Just how would buying a new phone system save you money? Simple. Your telecommunication provider’s goal is to sell you as many traditional phone lines as possible. An office equipment provider’s purpose is to sell you the solution that will create the most value for your organization.
Before selling a phone system to a customer, we evaluate their phone bill for potential cost savings and line consolidation opportunities. Then we find the plan that will best make that happen while still providing you with the features and communication technology to keep your business running smoothly.
To schedule your free phone assessment, contact us today!
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