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Tips for Saving on Business Phone Systems

papa0s0 | Apr 26, 2010 |

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As critical as it may be to the operations of a small business, a telephone system can still be extremely costly. Thus, it is imperative for small businesses to critique their communication needs prior to making a final decision. For businesses with limited cash flow, here are a few tips to help save on business phone systems:

Assess Billing Increments – Many phone service providers charge for phone calls in minute or seconds increments, such as two-minute increments or six-second increments. Providers with high billing increments (e.g. two minutes) usually charge a lower rate than providers with a low billing increment (e.g. six seconds).
Long Distance Calling – If you frequently place long distance phone calls, inquire about volume discounts; some providers offer discounts if you use a minimum number of long distance minutes each month. If you don't, look for a provider that offers a lower rate and higher long distance fees.
Analyze the Contract Details – Long-term contracts can be hard to avoid when it comes to business phone systems so look for providers with contracts that have favorable terms.
Cut Out Unnecessary Features – Many small businesses end up overpaying for their phone system because they're paying for features they don't actually use. Don't signup for features you don't need or hardly use.
Determine your Phone Usage – Most phone service providers also cap the number of minutes used per month; if you exceed that number, you pay extra for each additional minute. Determining the phone usage of your business (or how much each employee is on the phone) is essential to know how much you should pay for every month.
Consider VoIP – Voice over Internet Protocol is a type of technology that allows you to make phone calls over an Internet connection. Typically, VoIP systems (such as Avaya IP Office) are less expensive than other types of phone systems and calls can be made using either a traditional phone outfitted for VoIP or using a computer.
Analyze your Bills – Once you have chosen a system, analyze your bills to further determine your phone usage and pinpoint areas of potential savings (e.g. are you using the full amount of minutes you are paying for?).