Compare Price Quotes from Phone Systems Providers

Phone Systems Intro

Picking the right phone system for your business can be a challenge. Not only are there a number of digital phone systems to choose from, there are specific business phone systems designed for small businesses, large corporations, and everything in between. The best system for your business is one that offers the features you need at a cost that’s within your budget. Factors to consider include how many employees will be using the phone system and how large you expect to see your company grow. Determining this number will not only help you decide how many actual phones and extensions you will need, but will also help narrow down your search to only those systems that are the most suitable for your business.

Of course, there are several other factors to consider in addition to the number of system users. You should also consider how many employees you currently have, how many lines you will need (including lines for faxing, if applicable), future growth, compatibility with your current hardware or internet connection (if using a VoIP system), how much you can afford, your call volume, your geographic location, your level of technological know-how, and other factors.

Before you begin comparing phone system vendors, it’s a good idea to research the basics: what types of systems are available, the requirements and costs of each, and how different systems function. Before you begin comparing phone system vendors, it’s a good idea to research the basics: what types of systems are available, the requirements and costs of each, and how different systems function. The smart business owner is always armed with information before making an big purchase. Here’s a quick overview to get you started:

Different Types of Telephone Systems

KSU-less Systems - These phone systems are generally the top choice for businesses with less than 10 employees. KSU-less systems require a lower initial investment- typically, all that you need to purchase are the phones themselves. For this reason, they are popular among smaller companies or those with budget limitations. A KSU-less system is not permanently wired into your office, which means it can be easily moved or transported to a new location. The downside to using a KSU-less system is that they are not expandable... if you plan on growing, you may want to consider another option.

Key Systems - Also known as KSU (key system unit). These systems are typically for companies with between 5 and 40 employees, and are what most people think about when they imagine an office phone system. Key systems employ a “phone cabinet” that houses routing software, and use the public switched telephone network (PTSN) or landline system to route calls.

PBX Systems - Also known as Private Branch Exchange (PBX). These phone systems are for companies with more than 40 employees. PBX systems will give your company advanced functionality, and are highly customizable. PBX systems are completely programmable and can support complex implementation, so you may need to consider maintenance costs along with the costs of the system itself. These are also fairly expensive systems- like Key Systems, KSU-less systems, and other on-site options, you can purchase the equipment outright and install it at your office. PBX systems are also available as a hosted option, where equipment is owned and housed by the provider of the system. This option can drive down system costs while still offering the advanced functionality that most businesses associate with a PBX system.

Voice Over IP (VoIP) - VoIP phone systems can offer significant cost savings as well as many other benefits. VoIP runs over Internet lines and routes your calls over a data network. V oIP systems come in several different varieties: IP-PBX, hosted VoIP, virtual PBX, and other options all use VoIP technology to route calls. VoIP systems provide comparable service to traditional or PTSN based phone systems- in many cases, VoIP systems use some combination of internet and landline connections to route calls. The downside to using VoIP is that you are dependent on an internet connection to receive and place calls- sometimes you may experience network outages and/or limited bandwidth that can impair services.

Tips for Finding the Right Telephone System

The “right” telephone system isn’t the same for every business. Some companies are focused on functionality- they need a system that can perform certain tasks, such as transferring calls from multiple office locations, videoconferencing, or other advanced options. Others are more concerned about system costs- you can implement a very professional system for as little as $20 in monthly VoIP service charges if you’re willing to sacrifice some of the more advanced features. Here are a few tips to help you get the best deal on a phone system for your business:

Test the system - Always ask to demo the system you're considering buying. Many companies even provide free trials or free system downloads that allow you to test the system before committing to a purchase or an ongoing contract. Evaluate the phone and speakerphone quality, evaluate the ease of access to voicemail, and check the ease of accessibility to other extensions.

Ask about equipment - Many VoIP providers, especially those that specialize in providing services to smaller businesses, require that you purchase equipment directly from them as part of your service package. While the costs of the service itself might make such plans attractive, equipment costs can quickly eliminate any savings you might have enjoyed. Ask the vendor if you can purchase equipment from a third party, or even use refurbished or recycled equipment, which is usually more cost effective.

Voicemail compatibility - Many companies have third party voicemail systems. You should always ensure that your telephone system is compatible with not only your current voicemail system, but also with a wide range of voicemail systems in anticipation of future changes.

Buy at the end of a quarter –If you’re purchasing an enterprise-based solution or large scale system, waiting to purchase can be a good idea. This trick also works for purchasing equipment from a third-party vendor. This is when sales targets need to be met and companies are more willing to bargain. Phone systems sales people will go to bat for you and your company and get you a good price in order to make their sales quota.

How to Compare Digital Phone Systems Quotes

Read more about how to choose a VoIP provider from our Buyer Guide.

The backbone of your phone system is the VoIP service plan itself. Different companies look for certain qualities in a service plan. For example, business VoIP services offer various features, including call transfers, call monitoring, multiple extensions, and even video chat to hold conferences using a computer and a headset microphone. Business VoIP users can also take advantage of advanced features and service offerings- media phones (which allow you to track call time and transfer incoming calls using a touch screen) are becoming increasingly popular, as are mobile VoIP features that allow business owners and employees to take calls from a mobile phone (without using cell phone minutes) by connecting to the internet.

Most phone system costs can be broken down into two categories: the cost of the service plan itself, and the cost of the necessary equipment. It’s important to evaluate both together when you’re considering phone system expenses. Plans typically start at about $20/month for very basic service offerings that include one line with several extensions and simple features like voicemail and caller ID. For plans with advanced features, costs can approach the hundreds of dollars monthly or more. Some plans include equipment- either phones, VoIP adapters, headsets, etc. Others will allow you to use existing equipment or purchase the needed hardware from a third party vendor. Most phone system quotes should include a breakdown not only of monthly service charges, but also an outline of equipment costs, including any charges for installation, maintenance, or repairs.

For both smaller companies and large enterprises alike, there are service plans out there to match your exact needs. It’s a good idea to compare at least three to five different service quotes. Review quotes carefully- some phone system providers charge for later add-ons, such as adding an extension or upgrading software. These charges can add up quickly if you’re not careful.

What Comes With a Digital Phone System?

A large portion of your total phone system budget will be spent on equipment. Phones, adapters, routers, wiring, headsets, etc. will all need to be compatible with the system you choose, and purchasing these items new- especially from the phone system provider- can quickly add up. In some cases, you may be able to use your current equipment with the new system. Here are the basic VoIP equipment options available to you:

The Basics: Phones

• If you currently use a landline-based system, don't worry, you don't need to throw all of your equipment into the recycling bin when you choose to go digital. Many businesses use a desktop handset, which is what comes to mind when you think of an office phone. Less expensive than desktop phones are headsets: a standard headset with microphone and ear piece usually costs less than $50. More advanced phones with videoconference features, LCD media screens, call tracking and monitoring and other advanced capabilities usually cost hundreds of dollars or more, depending on what features your business requires. You can also use your current phones, or purchase phones from an equipment dealer.

Step Up: Adapters

• Traditional PTSN phones can also be equipped with VoIP adapters. A VoIP adapter converts traditional telephone signals into a signal that your VoIP phone system will recognize. Typically less than $50, adapters aren't necessarily seamless- check into VoIP phone adapter options before purchasing.

Routers

• Besides the phones, your router is the next important equipment purchase. Some phone system providers require a specific type of internet connection, or a dedicated transmission line, in order to ensure that the system will function properly. If you plan to use a VoIP systems, it’s a good idea to check with the provider to make sure your existing infrastructure can support system requirements. Because digital systems run over the Internet, some VoIP service packages functions better with a faster connection. You may need to purchase a new or additional router.

Other Equipment

• Some types of systems require specific equipment, such as an IP-PBX or other routing hardware. Businesses using a PTSN- based system will also need to consider the phone cabinet itself, which can take up office space and has specific requirements when it comes to wiring and configuration. Most routing equipment will also need a reliable power source. If the system you are considering requires equipment beyond a simple router, work with the vendor to determine where in the office it should be housed. It’s also a good idea to learn the basics of any on-site equipment so that you can perform simple maintenance operations (re-connecting power cords, etc.) yourself.

Where to Buy Equipment

Most companies will bundle equipment, including phones, into the phone service package costs. Though it can be convenient to purchase everything from one source, this can often be the more expensive option. It pays to check out other sources for equipment besides your phone service provider. For example, you can check out other equipment vendors for refurbished, or used equipment to save on costs. While doing your preliminary research on business phone systems, you may feel overwhelmed with how many companies look qualified enough to carry out your phone system needs. In order to find the most qualified candidate, you may want to conduct some extra background information seeking to find a company that offers the best services and has the positive feedback to back it up- you can get user reviews for equipment fairly easily by performing an online search. If you choose to purchase equipment from a separate, third-party vendor, it’s important to make sure all components will fit with your new system. Make sure you pay attention to equipment features and costs, and check out several different equipment vendors before you make a final decision.

Choosing a Provider

Choosing an office phone system can be overwhelming, in part because there are so many options. There are companies that serve every type of business- the key is to narrow your search to only those providers that meet your requirements. Consider your budget, features requirements, the level of customization you require, and other factors, and try to focus on the handful of vendors that specialize in these types of offerings. When you come across an attractive candidate, ask them if you can try out digital phone systems that you are interested in using in your office. Not only will you get a hands-on feel of the product, compare phone systems and their features, but also gauge the trust level that the company has with their clients. Ask the vendor candidates about how they manage clients that need upgrades and additions later down the road.

It’s also a good idea to ask vendors for information on their former clients. Checking references is a great way to see how well the company worked with others and how efficiently they completed tasks like installing the system, performing upgrades, and maintaining functionality in the even of service outages. Comparing local references is always a good idea, especially if you’re considering using a virtual PBX system or a hosted VoIP option. Since internet service can vary by city or even by neighborhood, some service providers are better choices for certain areas. Phone system companies should be more than willing to offer contact information for local customers. Compare references alongside phone system quotes, and use your best judgment to determine which company will offer the best customer service.

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