The short answer to the question in the title is "Up to 88%." For details, read on.
In the past, two of the biggest expenses for in starting a small business used to be the office lease and the phone system. These were assumed to be the backbone of the business and it was hard to imagine operating without them.
Not in 2017.
Now, the world is digital and mobile. Elements of business include ecommerce, online currency, pop-up shops, coworking spaces, collaborative consumption, mobile devices and apps. Office and desk phone not included.
Here’s a rough estimate of how much an office phone system might cost today and how much more profitable your business could be if you went with a virtual phone system instead.
The cost of a traditional business phone
There are many variables that impact the cost, which is why it’s so hard to get a firm price when you try to nail down a price range. Typically, phone suppliers end up giving you a quote which is significantly different from the final price.
Generally, an on-premise system with all the essential hardware might cost around $3,500-$4,500 for installation and then $66 per user per month.
Those prices DO NOT include:
- Maintenance fees – these can run up to around $7,200 per year
- Move, add, change fees – you’ll need an IT specialist at an hourly rate for these
- Growing fees – when your business grows you may need new wiring, network cards, servers, etc.
- Opportunity costs – if the system fails, customers can’t contact you while you search for IT help
- Switching costs – there’s always a better deal with another carrier, but the changeover can be expensive
The cost of VoIP
Voice over IP (VoIP) can be much cheaper than voice over wires, but at the cost of reliable call quality. Over the past few years, VoIP providers have made great strides in improving that quality, but by definition the calls go over your network. That means that whenever bandwidth is tight or there's heavy traffic on the network, voice quality is going to suffer. That’s also why not all small business networks are even able to run VoIP systems. This test will help you determine whether your network can handle VoIP.
Installation of VoIP-capable desk phones will cost around $4,450, plus $650 or so for a virtual PBX unit. Annual maintenance will still be around $7,200 plus hourly IT talent. Monthly fees vary greatly, but typically run $24 - $44 per employee.
The cost of a virtual phone system
Why not simply knock off 88% of the price of your phone service and still get all the features you need? Instead of $66, you could pay just $8 per employee for Spoke. $0 for installation fees, $0 for IT talent, $0 for maintenance and $0 for periodic upgrades. You and your employees already have the hardware in your hands – your own mobile phones.
Spoke won’t use up your data because it runs on top of your voice minutes – which are typically unlimited. The voice quality of your calls won’t depend on bandwidth or local network speeds like they do with VoIP. If you need to see it to believe it, we welcome you to download the Spoke app and try it for free. The old barriers to business don’t apply anymore. Get Spoke, go digital and feel free to disrupt your industry.