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Business Phone System Cost: Budget Plan for Quality

Editor: Benjamin Knox | Updated: Tuesday, February 27th, 2024

Finding out how much a business phone system costs can be a bit tricky. Recently, I was on the lookout for a new business phone with my partner. While prices for VoIP systems were easy to find, figuring out the costs of on-premise PBX and analog PBX systems was a bit of a challenge. Many articles we found only gave vague estimates, leaving us unsure about potential expenses.

If you're feeling a bit lost in the business phone system prices, no worries. I'm here to break it down for you—what to expect in terms of business phone system cost. Whether it's VoIP, on-premise PBX, or analog PBX, let's talk about the key pricing details.

How Much Do Business Phone Systems Cost?

Discovering business phone systems, they're surprisingly wallet-friendly, contrary to common belief. The amount you spend depends on the type of phone and features you need.

OpenPhone [1] says you can get a basic VoIP phone system for just $15 to $25 per user per month. If you want something in the middle, it's around $25 to $50. Now, if you're into the old-school on-premise PBX systems, it might go up to $1,000 per user. And for those analog PBX setups with two-line desk phones? Up to $2,000!

Getting a business phone system is smart for any company. It makes sure you can talk clearly, no matter where you are. Connecting it to the internet can save you money on long-distance calls.

For today's businesses, having a top-notch voice phone service is a must. It's flexible for your customers' needs.

Tip: update your phone system about every seven years. Knowing this helps you plan and budget.

VoIP Phone System Cost

Switching to Voice over Internet Protocol (VoIP) for your business phone can save you money. According to Nextiva, this cloud-base VoIP phone can cost around $25 to $35 per line each month. If you want extra stuff like call recording, there might be more charges.

There are two types of VoIP phone cost: stuff you pay regularly (like subscriptions and per-user charges) and one-time costs (for setting up and getting equipment). Cloud telephony is on the rise, expected to grow by 35% until 2036 [2]. This means the benefits of VoIP are totally worth the money.

PBX Phone System Cost

PBX, or Private Branch Exchange, acts like a traffic director for calls within a company. It ensures calls reach the right places, both inside and outside, using shared phone lines. This not only keeps things running smoothly, but also boosts collaboration.

Cloud PBX is like a flexible phone plan, costing $20 to $50 per user per month. On the other hand, traditional PBX systems involve a one-time hardware investment of $1,000 to $5,000.

If you're going for analog PBX, the setup might be $500 to $2000 per user, with an extra yearly cost averaging $7,600 [3]. It's like having a membership with some extra yearly fees.

For businesses, it's about figuring out your needs. Do you prefer the flexibility of a cloud system or the reliability of hardware? Consider future growth – it's like planning for the long term.

Get quotes from different providers, understand the terms, and think about future expansions. It's like finding the best deal for your phone plan.

3CX Phone System Cost

3CX Phone System is smart software works great with Linux and Microsoft systems, allowing smooth communication with both VoIP and regular calls.

The 3CX PBX comes with awesome perks. You get easy backup, unlimited extensions, and smooth integration with Microsoft 365. Perfect for modern businesses, it offers on-premise and cloud options, plus handy live chat and video calls via mobile apps.

What's great for businesses is the first year of service is free, making it a sweet deal for upgrading your communication setup. After that, it's $200 to $300 annually, depending on your package. Choose the free Standard plan for two years or go for the Pro and Enterprise plans, free for the first year. Post that, it's $145 for Pro and $180 for Enterprise, with an extra $100 yearly for hosted plans and $75 for support tickets.

For on-premise pricing, 3CX offers Pro at $1.08 per user per month and Enterprise starting at $1.31 per user per month. And there's a free trial to check it out [4].

What's really cool is that 3CX grows with you. Adding more users not only strengthens your communication but also lowers the cost per user per month. So, it's not just an upgrade; you save more as your team grows.

8×8 Phone System Cost

The 8x8 phone system is a solid choice for businesses, blending the reliability of old-school methods with modern features. Now, it's all about cloud-based VoIP, great for remote work and online operations.

Inside 8x8, you've got everything you need: APIs, apps, team chat, local and global calls, HD video meetings, and an AI-powered contact center - a toolkit for easy and flexible communication.

There are three plans. The 8x8 Express plan is a steal at $12 per user monthly, giving you voice, video, messaging, unlimited calls in the US and Canada, voicemail, and AI.

Stepping up, the X2 plan at $24 per user per month (billed annually) packs in all-in-one voice, video, and chat. That means small business and enterprise integrations, plus fax capabilities.

At the top tier, the X4 plan is $44 per user per month (billed annually). It's the big shot, with analytics for bosses, unlimited voice calls in 40+ countries, call quality reports, and extra perks.

Other Popular VoIP Providers Cost

I found some VoIP options for businesses, and they come in different price ranges.

  • Nextiva has plans from $20 to $30 per user.
  • Talkroute is $20 to $60 per user.
  • Grasshopper starts at $26 for three users, going up to $80 for unlimited users.
  • RingCentral Office has offers $20 to $60 per user.
  • Ooma Office is between $20 and $25 per user.
  • Avaya is about $20 to $60 per user.

Switching to VoIP isn't just about talking – it's also a smart money move. Even with extras like call waiting, VoIP is cheaper than traditional landlines. Businesses making the switch can cut costs by a big 50% to 75%.

The cool part is, as your business grows, VoIP stays budget-friendly. No extra fees for new users mean you can save up to $1,200 a month for a business with 30 users.

VoIP isn't just good for calls; it's a game-changer for remote work. Combining voice and online conferencing can cut your teleconferencing costs by a solid 30%.

Here's a neat perk: businesses using softphones can save about $1,727 per month on mobile and long-distance charges. And for local calls, switching to VoIP can mean a sweet 40% savings compared to old-school phone systems.

So, not only does VoIP make your communication better, but it's also a smart move for your wallet, no matter the size of your business.

Business Phone System Equipment Cost

When choosing a business phone system, consider the equipment it needs to run smoothly. Unlike virtual systems, some setups use real office phones and gear.

Let's break down the average hardware costs to see what you might need. The specifics depend on your business size and type.

Phone HardwareAverage Cost
Phone Handset$600 per user
Advanced Business Phones$195 per user
Low-End Business Phones$100 per user

Small setups, like freelancers or small businesses, can keep it simple with basic phones. But for growing startups with teams everywhere, fancy business phones bought in bulk make sense.

Matching your phone gear to your business size keeps everyone connected without spending too much. It's a smart way to stay in touch as your business gets bigger.

Business Phone System Installation and Setup Costs

In the U.S., it usually averages around $400, but it can vary from $100 to over $1200 based on what you need.

Let's look at two popular systems – VoIP and PBX. VoIP installations match the average cost, while PBX setups can differ.

1. VoIP Phone System Installation and Setup Costs

Setting up a VoIP phone system is a one-time cost, keeping things budget-friendly. The cool part is, it works through the internet, which helps keep the expenses in check.

When you set up a VoIP system with regular stuff like phones, power sources, and routers, it'll cost you around $4,500. This covers everything from running cables to virtual setup, and the whole process averages just over $600.

2. PBX Phone System Installation and Setup Costs

Setting up a PBX phone system costs a bit more because it's a bit fancier. These systems connect your office phones and need some extra gear.

For the main PBX units, it usually costs around $2,500 to set up. And the installation work, like wiring and other stuff, adds up to over $1,650 on average.

Yeah, it's a bit more money at the start, but having a PBX system is worth it. It makes communication at the office way better. Even though you spend a bit more in the beginning, this setup builds a strong base for smooth communication at work, making things run better for the whole team.

Factors Determining The Cost of Business Phone Systems

Making sure your company's communication is top-notch is important, and a reliable business phone system is key in achieving that. But figuring out the right cost involves considering a few factors.

Think about the size of your business, the features you need, and whether you want it on-site or in the cloud. These choices affect the costs. By carefully considering these elements, you can make smart decisions that keep your communication effective and budget-friendly.

1. Number Of Users

Think of your business phone system like planning a big gathering. The more people, the more it's gonna cost. As your team grows, so does the need for extra stuff like phones, licenses, and tech support. It's like making sure everyone has a comfy seat at the table.

2. Hardware Costs

Some hardware are fancy and a bit pricier, but investing in good phones pays off – better calls, and they won't bail on you when things get busy.

Imagine routers and switches as traffic directors for your calls. Get good ones, and your communication highway stays smooth. No traffic jams here!

3. Software Costs

Some phone system software needs a fee. It can be a one-time deal or a recurring thing. It depends on what features you want for your system.

Need analytics, video calls, or tools integration? It might cost a bit extra, but it's worth it for the superpowers.

4. Installation and Setup Charges

Setting up a business phone system is like throwing a big event – you need experts. Sure thing, and sure enough, they cost money. Factor in setup costs when planning your phone system party.

5. Maintenance and Support Fees

Every good party needs a cleanup crew. Your phone system is the same. After it's up and running, there are ongoing maintenance costs. Tech issues and updates might need a quick fix, and that usually means some extra bucks.

6. Upgrading and Scaling Costs

As your business grows, so does your phone system. Adding more users or cool features costs money. Think of it as upgrading your tech superhero suit – it's an investment in staying ahead.

Different Models of Business Phone Systems

Finding the perfect phone system is like picking a reliable sidekick. I've got a lineup of business phone systems that cater to what your organization needs. Let's break it down so you can pick the one that suits you best based on your business style, size, and how you move around.

1. Hard Phones

Hard phones are like the classic desk phones you've seen forever. They sit on your desk or in meeting rooms, ready for action. You can do a bunch of things with them—host conference calls, check voicemail, and make direct calls. And if you're feeling fancy, you can use handsets, headsets, Bluetooth, or speakerphones.

2. Softphones

If you're all about flexibility and being on the move, softphones are like your digital sidekick. They work within apps on devices like computers, tablets, or smartphones, doing what hard phones do but in a more portable way. People on the go, like mobile professionals or call center peeps, love how cost-effective they are.

3. Wireless IP Phones

Wireless IP phones are like the ninjas of phones, equipped with Wi-Fi or DECT transceivers. They let you roam freely in your office or home while staying hooked to your calls. You can even chat away at Wi-Fi hotspots—pretty cool, right?

4. USB Phones

USB phones keep it simple by plugging directly into your computer's USB port. They play nice with softphone programs like Skype, making your communication hassle-free and straightforward.

5. Desktop VoIP Phones

Lots of businesses swear by desktop VoIP phones. They connect to your VoIP phone system through Ethernet and cover all the basics for your daily communication needs.

6. Videophones

Videophones bring the meeting room to your desk. They have tiny cameras connected to the handset, making virtual meetings a breeze and letting you connect face-to-face with folks around the world without leaving your chair.

7. Conference Phones

For big offices or conference rooms, IP conference phones are the heroes. They do the same thing as those old-school conference phones but in a digital way, making multi-party calls during important meetings super efficient.

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