Compare Business Phone System Prices – Calculate The Cost of Cloud Phone Systems in 2020
What’s the cost of a cloud based phone system for your business? Compare 2020 cloud phone system prices for your office communications.
Cloud-based phone systems used to be exclusive to large businesses. As small and medium-sized businesses have learned the value of this technology though, many are making the switch.
When comparing phone systems, it’s important to weigh the pros and cons of traditional vs. cloud-based systems. For instance, businesses have seen a reduction in fees with a cloud-based phone system. These systems reduce local costs by 40% and international costs by up to 90%.
Is the switch to a cloud phone system right for your business? Before making a switch, take some time to compare the price of business phone systems.
Cloud Phone Providers and Prices
Phone Power has the cheapest base plan option. For a one-year prepay plan, you can get a non-international plan for $8.33 per month. This plan includes:
- Phone number transfer
- Free second line
- Unlimited calling to the U.S., Canada, and Puerto Rico
- 60 minutes per month of international calls free
- call waiting, holding, and transfer
- conference calling
- no set-up fee
There are about 45 features included in the basic plan. To get a no-contract plan, the price is $19.95 per month and includes the same features as the contract plan. For international plans, the price ranges from $20 to $50 depending on the number of countries included.
Phone.com provides a cheap pay-per-minute option for a basic plan. The base plan starts at $12.99 per month. The features included in this base price include:
- A local or toll-free number.
- Standard features including account management, call waiting, and voicemail to email.
- Unlimited extensions.
- 300 monthly minutes.
- 5,000 SMS messages.
- 24/7 customer support.
There are about 40 standard features included in the base plan. To get some features such as call recording, video conference, hold music, or voicemail to text, a premium or unlimited plan is required. Premium plans can range from $20 to $60 depending on the extra services and features required.
While Phone.com provides a pay-per-minute plan, Nextiva’s cheapest option is a basic unlimited plan. The basic plan starts at $19.95 per month. This plan includes:
- Free local and toll-free number.
- Voicemail to email or to text.
- Virtual faxing
- Hold music
- Call monitoring
- Unlimited extensions
- Phone number transfer
- Unlimited calling
- Easy account management
For other features such as greetings, conference calls, and call recording, a premium plan is required. Nextiva does not require a set-up fee for any of the plans. Premium plans can range from $20 to $28 depending on the features your business requires.
Ring by Name
Ring by Name is another unlimited plan service provider. The cheapest option available is $24.95 per month. This plan includes:
- Free local and toll-free numbers
- Voicemail to email
- Hold music
- Call routing
- Remote pick-up
- Call waiting and screening
- Unlimited calls to U.S. and Canada
- Conference calling
- 24/7 support
- Phone number transfer
- No set-up fee
This plan also offers text-to-speech and other bonus features. For features such as efax or call recording, a premium plan is required.
Premium plans range from $35 to $45. There are other features available for an extra monthly fee.
Possibly the best option on the market today, RingCentral provides an unlimited plan starting at $19.99 per month. This plan is available for up to 10 users. Features for this basic plan include:
- A toll-free number with up to 100 minutes for free.
- Unlimited local calls.
- Unlimited conference calls and video for up to four people.
- Unlimited texting
- Remote access
- Mobile access
- Voicemail to email
- File sharing
- 24/7 customer support
For other features such as faxing, call monitoring, call reporting, and unlimited users a premium plan is required. Premium plans range from $25 to $50. Other features such as extra numbers and international calling are available for additional fees.
8×8 Cloud Service
8×8 provides an unlimited plan that includes 14 countries in the base plan. The base plan starts at $28. The features for the basic plan include:
- Free phone number and extensions
- Unlimited calls in the U.S. and 14 other countries
- Conference calling and video for up to 100 participants
- Remote and mobile access
- Call recording
- Easy integration with CRMs.
- Analytics tools
The countries included in the basic plan include U.S., Canada, UK, Puerto Rico, France, Germany, Australia, Italy, Switzerland, Spain, Sweden, Ireland, New Zealand, and the Netherlands.
For other features such as call recording, switchboard, chat, and advanced customer support you will have to purchase a premium plan. Premium plans range from $48 to $175. The premium plans include 33 other countries for unlimited calling.
What is a Cloud-Based Phone System?
You’ve probably heard the term Voice over IP (VoIP) before. This basically means making phone calls over the internet rather than over phone lines. Cloud-based phone systems use VoIP technology to provide your phone service.
Cloud-based phone systems have existed since the 90s, but the technology and features have changed drastically over time. Now companies are not required to keep hardware on site to run their VoIP systems, making it easier for more companies to gain access to the technology.
The cloud-based phone system provides greater security and less maintenance because the system is hosted outside of your business with server redundancy. The cloud phone system provides more flexibility and ease of use for your employees.
The up-front cost is more expensive, as VoIP friendly hardware is required. You can make up this investment over the long-term though with lower monthly costs and fees for needed features.
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The Benefits of a Cloud Phone System
A cloud-based phone system has several benefits over traditional business phone plans. These benefits include:
- Many special features are included in the monthly cost.
- The cloud-based system can grow with your business.
- Reduced long-distance and international costs.
- Allows for remote access.
- Increased security.
- No software maintenance.
- Easy set-up.
Most cloud-based phone systems include features such as auto attendant, call monitoring and recording, speed dial, call transfer, conference calling, call return and other useful services in the base fee. Some features require additional fees, but you only have to purchase what you need.
A cloud phone system allows you to start with a basic plan and add new features as your business grows. This means the system can grow with your business without requiring a whole new system.
A cloud-based phone system also gives you flexibility. With options to access your business system from anywhere, including your cell phone, you can work from anywhere. Cloud-based systems make it easier to hire remote workers which can cut down on overhead costs.
The cloud-based business phone system also gives your business increased security. The plan is hosted on outside servers so you don’t have to worry about hackers. There is also built-in redundancy so if one server goes down you still have access to your system.
Many cloud phone providers also offer 24/7 support so you can get help whenever you need it. They also provide easy set-up so you can get your system running quickly.
Cloud Phone System Prices – What to Look For
When comparing cloud phone system prices, it’s important to look at several factors.
- Minimum costs
- Minutes provided
- Set-up and service fees
- Local, long-distance, and international rates
- Cancellation fees
- Price of needed hardware
- Carrier and line fees
Each service provider will have different base rates, and these will include different features. When picking a cloud phone system, keep your business needs in mind when comparing the prices and features. While some systems have higher monthly fees, these usually include more base features.
Most cloud-based systems will provide some basic features and support in their base monthly fees. When comparing systems, make sure your basic plan includes a toll-free number.
Some other basic features to look for include:
- Call monitoring and recording
- Call transfer
- Conference calling
- Speed dial
- Call blocking
- Call return
- Find me- to transfer to another line if the call goes unanswered
The monthly fees for systems with basic features range from $20-$30. Providers that offer 24/7 support may cost more than other providers.
Remember that costs are also based on the number of lines required for your business. Make sure you pay attention to the maximum number of users for each plan before making your purchase.
Other Features to Consider in an Office Phone System
Some other cloud-based phone system features may or may not come with the basic plans. Before making your purchase decision, consider what features are required for your business.
If your business hires remote workers or sends employees out regularly, you might consider a plan that includes remote calling. While most providers include this, there may be fees based on minimum calls or other factors.
Another thing to consider is conference calls. While most plans will have conference calling, there are limits on the number of people able to participate in a conference call.
You will also want to consider integration with other programs such as CRMs or workflow apps. Make sure you ask questions about compatibility with other systems used in your office before purchasing a plan.
Also, keep contract requirements in mind. While some service providers do not require a contract, many will require a one-year contract for service. Ask about contracts and cancellation fees before purchasing your cloud-based phone system.
If you have a business with less than 20 employees you may want to consider some of the pay as you go options. While this may limit some of the features provided, most of these plans have options to upgrade later as needed.
If you have contacts outside of the U.S. and Canada, you’ll want to consider international plan pricing. While some basic plans include other countries, most will require a premium plan or an additional fee for international calls.
Base Monthly Fee Comparison
There are numerous options for cloud-based phone systems available. It’s impossible to compare every option, but we can compare the most popular and reputable service providers. Starting from cheapest to most expensive basic plans, let’s take a look at what each offers.
These prices are based on small businesses with less than 100 employees generally. For companies with more employees, prices will differ.
Remember the monthly prices are based per user. A small company is looking at paying about $6,000 to $25,000 per year for a cloud-based phone system. A medium sized company may pay anywhere from $33,000 to $60,000 per year.
Comparing Business Phones is About More than Price
Remember, you get what you pay for. While it’s tempting to choose the cheapest option, choosing the wrong plan for your business needs may cost you more in the long-term.
When choosing a plan consider both your current and future business needs. Pick a plan that can grow with your company plans and growth. Take the time to consider the needs of a growing company.
You may also want to consider features that can help your business grow. Features such as click to call can help reach potential customers you might not otherwise reach. While this feature is included in some plans, it’s not included in all of them.
Also, consider ease of use and access for employees. Features such as mobile access or software download for remote access are important for businesses with remote or traveling employees.
When choosing a cloud-based phone system don’t just compare prices of different providers. Make sure you also compare the prices of the different plan options and how those plans fit in with your company.
Choosing the Best Phone Services for Your Business
If you’re pricing business phone systems, you may also want to look into some of the other service options to help automate and grow your business. Services such as answering services, time-tracking, or payroll processes are great options to help you make the day-to-day business easier. Even if all you need is a cloud-based phone system, you may need help figuring out which system is right for you.
If the idea of pricing phone systems seems daunting to you, let us help you compare your options. We have done the hard work for. Our buyer’s guides have all the comparison information you need for a one-stop shopping process.
If you’re ready to compare your options to find the best cloud-based phone system for your business, contact us for an easy quote process. By providing us with some basic information about your business needs, we can help you find the plan that will work.
Office Phone Sample Costs
Below are a few examples of price facts for Business Phone Systems which will give you an idea how how much you will pay for you purchase. Features of small business phone systems are designed to help business owners and their employees work smarter and faster.
- PBX telephone systems support offices with an excess of 40 employees and are priced $750 to $1,150 per user.
- A key system (for offices with under 50 employees) shows which lines are in use and offers many telecom features costs between $250 to $1,175 per employee.
- KSU-less phone systems for 3-10 employees costs $85 to $275 per employee .
Related Industry Terms: Small Business, Hosted, Full Service, Office, Conferencing, PBX, Voicemail, Cloud, Extensions, Digital