The answer is: that depends – on your business size, industry requirements, and specific feature needs. Phone systems range from a simple, cloud-based setup costing a few pounds per month to more advanced, multi-feature systems that can require a substantial investment. So let’s break down the types of phone systems available and help you understand how your business needs can shape their overall cost.
1. Types of Business Phone Systems
The first factor that impacts your cost is the type of phone system that suits your business setup and size. Here are the main types to consider:
- VoIP (Voice over Internet Protocol): Often hosted in the cloud, VoIP systems use the internet to place calls. These are highly scalable and typically less expensive than traditional phone lines.
- PBX (Private Branch Exchange): This is a private telephone network used within a company. It can be hosted either on-premise (hardware-based) or in the cloud (virtual PBX).
- Hybrid Systems: Hybrid systems combine VoIP and traditional landlines, allowing companies to use a mix of modern and legacy systems.
- Unified Communications (UC) Systems: For businesses needing more than voice communication, UC systems integrate VoIP, video conferencing, messaging, and more.
2. Costs Based on Business Size and Call Volume
Small Businesses and Startups
For small businesses, an affordable cloud-based VoIP system is usually sufficient. Cloud VoIP solutions typically range from £5 to £20 per user per month, depending on the provider and features required.
Example costs for small businesses:
- Basic VoIP plan: £5-£10/user per month (includes essential features like call forwarding, voicemail, and local calling).
- Advanced VoIP plan: £15-£25/user per month (includes more advanced features like call analytics, video conferencing, and mobile apps).
These lower-cost solutions are often perfect for businesses with fewer employees and low call volumes.
Medium-Sized Businesses
Medium-sized businesses may need more robust systems to handle higher call volumes and larger teams. As well as Unified Communications, PBX or hybrid systems become more relevant here, especially if the business relies on multiple phone lines or customer support centres.
Example costs for medium businesses:
- Cloud PBX systems: £20-£50/user per month (includes call queuing, CRM integration, and remote access).
- On-premise PBX: Initial setup costs of £500-£1000 per line with monthly maintenance fees of £20-£50 per line.
For these businesses, the upfront investment can be justified by improved call handling, customer experience, and scalability.
Large Enterprises
Enterprises often require complex setups with advanced features, such as call center capabilities, extensive reporting, and integrations with CRM systems. These organisations may opt for complex unified communications setups or advanced VoIP systems that allow seamless communication across large teams and departments.
Example costs for large enterprises:
- Complex Unified Communications systems: £50-£100+ per user per month equivalent, depending on custom integrations and volume of users.
- Enterprise-grade PBX (on-premise): £10,000+ in setup costs, plus ongoing maintenance fees.
Enterprise solutions often justify the investment with the benefits of seamless communication across departments, improved call tracking, and sophisticated analytics.
3. Factors That Influence Costs Beyond System Type
Beyond the size of your business, several other factors will influence the cost of a phone system. Here’s a closer look at these variables:
Feature Requirements
Every added feature affects the monthly cost per user. For instance:
- Call recording: Price affected by call volumes and compliance needs
- CRM Integration: May add £10-£20 per user per month.
- Video conferencing: Generally included with UC systems but may add £5-£15 per user with standard VoIP plans.
Hardware Needs
Depending on whether your business needs physical desk phones, headsets, or other devices, hardware costs can range from minimal to significant:
- Basic VoIP phones: £50-£100 per device.
- Advanced phones (with touchscreens, conferencing features): £150-£400.
- Headsets: £20-£100 per headset.
International Calling Requirements
If you operate internationally, it’s important to mention this so you can negotiate optimal tariffs for your common call destinations, otherwise you may be put on a standard rate card and be hit with costs you aren’t expecting.
Maintenance and Support Fees
If you choose an on-premise system, factor in maintenance costs. Service fees generally range from £500 to £2000 annually for on-premise systems. Cloud-based systems, by contrast, include maintenance in their monthly subscription fees.
Customisations and Integrations
If your business needs to integrate the phone system with existing CRM, ERP, or other software, there may be additional costs both monthly and for setup.
4. Conclusion: Finding the Right Balance for Your Business Needs
Business phone systems come with a wide range of options and pricing structures. Costs for a phone system vary based on:
- Your business size and call volume.
- The type of system you choose, whether it’s VoIP, PBX, hybrid, or unified communications.
- Additional features and international calling needs.
- Hardware and support requirements.
Quick Overview of Estimated Monthly Costs by Business Size:
- Small business: £5-£25/user
- Medium business: £20-£50/user
- Large enterprise: £50-£100+/user
Whether you’re looking for a basic setup or a full suite of communication tools, understanding these factors will help you select the right system at the best value for your unique needs.
So How much does a Business Phone System cost?
The answer is – that depends. That’s why at Deep Blue we take the time to get to know you, your business, your needs and your budget so we can work with you to find the right solution. If you would like to know more, we’d love to hear from you.
Call us on 0333 240 9100 or email theteam@deepbluetelecom.co.uk