How much does a phone system cost for a small business?

Phone systems can vary in price greatly, it comes down to the system and its functions. They range from traditional KSU phone systems, PBX phone systems, Hosted PBX phone systems, VoIP phone systems and cloud phone systems to name the main ones.

These systems all offer different benefits for a business. Some more than others, it depends on the capability of the system and its flexibility, as well as how it operates. An older more traditional system will rely on copper lines for example whereas its modern counterpart a VoIP phone system is run through the internet with virtual phone lines, this also gives it added benefits and features to offer users.

For simplicity’s sake it can be stated that phone systems consist of a system of phones working together, connected in a way to allow for various features to be used such as transferring calls, or call handling among a variety. A system of phones with extensions to desks have. various features that can aid in business processes, more specifically around communicating internally within the business/office environment as well as externally to customers for instance.

phone system cost for a small business

Phone systems are connected in a way that it’s varying benefits and attributes can be utilised for functions such as making and receiving calls on a more basic level, on top of this the ability to transfer calls or handle a call in different ways such as putting someone on hold. Each phone has its own extension as it’s an extension of the system and contains its own processes to aid in communicating internally within and externally to a business with customers all within an office environment however this may change depending on the type of system employed.

A KSU Phone Systems is an older and more traditional phone system, while some still utilise this system it’s hardly the most employed in a new business today considering it’s inflexibility and nature of the system that binds a business to a location. It employs a central device called a key system that is responsible for call routing. This is a clunky and large device installed on the premises. Roughly 40 users is its limitation and it is suitable for smaller businesses, coming in at $300 to $1000.

Business with a larger amount of employees will tend to go with a PBX phone system rather than a KSU, as it has advanced features built into it or that can be built into it, minus the inflexibility of the KSU system which would cost exorbitant amounts of money to move if that were even possible. A PBX can be moved from location to location.

Calls are routed through the PBX phone system efficiently due to its programmable switching device, a device that looks akin to a box like the name suggests and functions without electricity as it has its own power supply. It controls the functionality and provides everyone on the system their own extension. The standard system comes with the ability for conferencing, basic call routing, specific recorded messages and so on. The system will cost roughly $800 to $1000 to set up so it is already more expensive than the KSU phone system.

VoIP phone systems as aforementioned run through the internet with virtual phone lines. Some of the more illustrious benefits of VoIP phone systems include their lower cost of calls. With more traditional phone lines, you are unfortunately limited by the number of lines which can make calls expensive. This is not a problem with VoIP as you do not need physical lines as you are transferring data packets over the internet. A VoIP phone system will cost you anywhere from $150 to $1000.

Cloud Phone systems are hosted by a third party over the cloud, so the costs of maintaining the phone system is greatly reduced as well as the time involved. Upgrades are also relatively irrelevant, and VoIP hacking which was a problem with VoIP is avoided with cloud phone systems due to a higher level of security incorporated in the system. It includes a host of Advanced  features such as the ability to incorporate the system with your business CRM with automated logging, as well as its ease of use and ability to be easily configured by any of the employees in the business as opposed to having a dedicated IT Team. All of these features make it the most optimal pick in terms of quality and convenience and price wise it will cost you in the same $150 – $1000 ballpark as VoIP phone systems.

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