Our Blog

All things phone systems related. Get into our heads.

Welcome to the Phoneworx blog, where you are guaranteed to learn more about how telecom services can add value and other tips to grow your business.

Thinking of buying a business phone system? Read this first!

Obviously you probably wouldn’t be reading this blog or on our website if you weren’t – so let’s begin by addressing why you might be debating making this purchase.

  1. You don’t have a phone system
  2. You’re unhappy with your current system, vendor or carrier
  3. You’re trying to cut costs

Whatever the reason – don’t be short sighted. Phone systems can be expensive and many company owners may feel that if a phone system rings, it shouldn’t cost a lot of money – and they’re right. If you have a small business where all you want is a phone that rings, you can go to Office Depot or Staples and purchase a 2-line phone. Business phone systems are not for everybody, and that’s ok.

On the other hand, if your company has four or more employees a quality business phone system is a must. Every employee must be able to make and receive calls, put calls on hold, transfer between offices and have an individual voicemail box – standard features on all new VoIP systems. Short sightedness comes into play if you choose to purchase technology because it “works for me now.” You buy this first system because the equipment is a little bit cheaper and with the hope that it will last 10+ years.

Unfortunately, you could be setting yourself up for a BIG letdown – both in terms of functionality and long term costs. Technology today is not digital but VoIP (Voice over Internet Protocol). Digital is 1990s technology and it’s over 20 years old! If you choose a low-cost digital phone system, it is going to be 30+ years old when you replace it. In the meantime the cost of your phone services – i.e. expensive phone lines – will cost you thousands of dollars, money you will never get back. 

Consider the following scenario
Traditional phone lines cost about $80/line including long distance, fees and taxes. Multiply that times five lines = $400/month or $4,800/year. In 10 years you will have paid $48,000 dollars, not including the initial cost of the equipment or office internet service.

On the contrary, VoIP would cost around $37/month including long distance, fees and taxes. With five phone lines at $185 total/month, in 10 years you’ll have paid just $22,200, saving $25,800. More than 50%!!  It’s even more expensive for traditional lines if you have a T-1 (pardon the techie term), which just like traditional analog lines, are 1990s technology. 

So before purchasing a new business phone system take a thorough look at what you are actually getting – or being sold by the telecommunications sales guy. You wouldn’t purchase a work vehicle or desktop computer from 1990… so why would you buy a phone system – a key to your business image and customer service delivery – with such clearly outdated technology?

Do you have more questions? Great! Leave them here or give us a call.  We’ll gladly take a look at any other offers to ensure your comparing apples to apples instead of prunes to mangos.

  – Bill, Operations Manager & Technician

This entry was posted in Business Phone System, VoIP and tagged , , , , . Bookmark the permalink.

5 Responses to Thinking of buying a business phone system? Read this first!

  1. Phone System says:

    Hi, Bill/Megan. I do agree that VoIP is the more cost-effective choice in the long run…but it may not be for everyone. In your opinion, which industries will get the most benefits out of this system?

    • megan says:

      I don’t believe VoIP benefits any one industry over another because VoIP uses SIP trunking verses POTS (Plain Old Telephone Service). Almost all industries today have access to the internet and SIP lines leverage the internet to send phone calls. So in answering your question, it isn’t so much industry centered as it is economically centered.

      There are some industries that will utilize more of the built-in features available to them through VoIP systems – i.e. remote phones, voicemail-to-email and multi-site calling. In new construction utilizing VoIP can provide a substantial reduction in cabling costs, and these are just a few of the potential benefits of VoIP vs. older, outdated technology. Also, in most cases, savings realized by using VoIP will pay for itself in less than three years. That’s not a such a “long run” do you think? Overall, most industries (if not all) can equally benefit from VoIP.

      – Bill

  2. Phone System says:

    Ah, so it’s not WHO uses it, but HOW one uses it! Thank you for clarifying that point; it’s much appreciated. :) I’m excited to see how a full-on VoIP business world would work in the future.

Leave a Reply

Your email address will not be published. Required fields are marked *

You may use these HTML tags and attributes: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <strike> <strong>