How Much Does A Phone System Cost?
Don’t you hate the answer “It depends”? Well, it does.
However, for budgetary purposes a conventional premise-based phone system (a phone system that resides in your office), the costs range between $500-$1000 per user. So, split down the middle $750/user. For a twenty-person office: 20 x $750= $15,000.00 as a one-time cost.
For a VoIP/Cloud-based system (no phone system in your office, just phones) you will pay a monthly recurring fee of between $25-$35/user each month. So, split the down the middle $30/user. For a twenty-person office: 20 x $30 = $600 per month. The upfront cost for installation runs would run $2,350.07.
Purchasing a premise-based system is like purchasing a car. You either pay for the car with cash or a loan, then you own it. From there you keep up with the maintenance and pay for fuel.
A VoIP/Cloud-based system is like renting a car. You don’t ever own the car, but the maintenance and fuel are all covered.
Here’s a real-life example of a premise-based system costs versus a VoIP/Cloud system costs for a twenty-person office:
Premise-based Telephone System:
- System purchase including installation, configuration, and training: $14,535.58
- Carrier Services: $139.32/month
- Maintenance Agreement: $114.89/month
- Total Monthly Recurring Costs (MRC): $254.21
Total Cost of Ownership (TCO) for 5 years: $29,788.83
VoIP/Cloud-based Telephone System:
- Installation, configuration, and training: $2,350.07
- Total Monthly Recurring Costs (MRC): $552.80
Total Cost of Ownership (TCO) for 5 years: $35,518.07
With either, of these options, the customer was able to do away with their existing phone service which was running $459.00/month!
Which system would you choose?
The features offered by both systems are similar.
The premise-based system was less expensive overall for the customer, but over five years, not by much.
Oftentimes, people like the security of owning their own system. They have control of what goes on with it, what carrier they use, and who can service it. They like having everything in-house. The premise-based system is for them.
Other people want a managed system. They want to be able to use the phones but do not need to deal with carriers, maintenance, and equipment. They are willing to pay a little more for this.
Which system is BEST for you?
It depends… (See what I did there?). If you need help, we’re here for you!
Call: (410) 573-0555