Hosted PBX pricing
Hosted PBX pricing is generally based on a monthly per line fee. That charge will vary according to the features you choose, the number of employees you have, and the type of contract you choose, and doesn't include startup costs such as phones and installation.
In most cases, the provider should be able to give you a general idea of your monthly costs after a couple of phone conversations, but gauging setup and installation costs can require a bit more investigation. See what other BuyerZone users have paid for hosted PBX services.
If purchased separately, incoming phone lines are usually around $12 to $30 each, paid to the phone company. On top of that, the hosted PBX provider will charge $10 to $20 per line per month for standard business calling features. The more users you have, the lower those per-line fees - larger companies can see those rates drop to around $6 to $8 per employee.
All-in-one hosted PBX pricing is similar in total cost: expect to pay between $25 and $50 or more per line. Adding more advanced features like ACD can push costs towards $70 or more per line for some users. You also may be able to add lower-priced extensions with less functionality, such as voicemail-only lines.
If your current Internet connection isn't sufficient for voice applications, you'll need to upgrade. Business-grade DSL can cost $70 to $150 per month, and T1 connections typically cost between $300 and $500 per month.
Startup fees can range considerably. If you use your existing networking hardware and phones, startup costs may be as little as $0 to $80. More often, though, you'll need to invest in new phones, at a cost of $100 to $300 per employee. You may also need a new router and network switch, adding another $900 to $1,200 to your costs. Unlike traditional hardware PBXs, though, that hardware investment is a one-time cost: since all the features and service come from the provider, you'll rarely need to pay for new equipment, even as new features and services are made available.
Some virtual PBX services with extremely low prices - $5 to $10 per month - only seem like a bargain. These services don't replace your primary phone system. Instead, they add VoIP features to your existing phone system, without requiring a complete changeover. They can be an inexpensive way to get some new features, but they don't provide most of the benefits of a true hosted PBX system.
Contracts vary quite a bit among providers. Some will offer month-to-month contracts, with no long-term commitment required. Others will ask for a 12-, 36-, or 60-month contract, and may offer price breaks if you commit to a longer deal.
Comparing hosted PBX pricing
The cost savings over traditional customer premise equipment are fairly apparent. If you consider the monthly lease costs or amortized ownership costs of a full-featured traditional PBX system, including maintenance contracts, phone service, long distance, and Internet access charges, you'll almost always find that hosted PBX services will save you money.
There is a small financial downside to consider: a traditional PBX is a significant asset you can depreciate over time to offset income on your balance sheet. Since hosted PBX pricing is based on monthly fees, there's no comparable write-off.
When deciding between hosted providers, cost comparisons can get complicated. We can't overemphasize the importance of making sure you're comparing apples to apples once you get bids from multiple providers. For each price quote you get, factor in all of these costs, whether they all come from the same provider or from multiple sources:
- Dial tone service
- Internet service
- Local, long distance, and international usage
- Interoffice calling
- Incoming toll-free numbers
- 411, 911 access
- Voicemail, auto-attendant, faxing
- Web/teleconferencing
- Customer support
- Hardware: phones, routers, supporting equipment
As is often the case, simply choosing the lowest cost provider is rarely the best approach. You might not get all the features you want or the reliability you need, and the cost savings you thought you'd be getting will never materialize. Be especially wary if you get several price quotes in the same general range and one that's significantly lower: it's likely the lowball bid is leaving out an important service or feature. Read on to get customized quotes for a hosted PBX system.
