Phone Systems

How is the Pricing Done for Cloud Based Phone Systems?

Know the factors that go into cloud-based phone system pricing, and the various pricing models available.


Cloud-based phone system pricing is an important decision that can have a significant impact on your business. A well-priced virtual phone system can help you attract and retain customers, while a poorly-priced system can drive them away. In this article, we'll discuss the factors that go into cloud-based phone system pricing, as well as the ideal price for a system and the various pricing models available.

Why is it important to price your cloud-based phone system right?

A cloud-based phone system is a critical component of any business's communication infrastructure. It allows employees to communicate with customers and each other, regardless of their location. A well-priced phone system can help your business run smoothly and efficiently, while a poorly-priced system can lead to frustration and lost customers.

What factors go into deciding the price of a cloud-based phone system?

There are several factors that can affect the price of a cloud-based phone system. These factors include plan features, the number of users, business app integrations, the location of extensions, and the length of the plan. Here’s a closer look at each of these factors.

Plan features

Cloud-based phone system pricing largely depends on the features included in the plan. For example, a plan with advanced features such as voicemail, caller ID, and call forwarding will typically be more expensive than a plan with basic features.

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Number of users

Virtual phone system pricing, like pricing for other types of cloud-based phone systems, is based on the number of users on the plan. As a general rule, the more users on a plan, the higher the price will be. This is because a larger number of users means more calls and more usage of the system, which can increase the cost of the service.

However, it's important to note that virtual phone system pricing is not always directly proportional to the number of users on the plan. Some vendors may offer discounts for large numbers of users, while others may have tiered pricing structures that depend on other factors. Additionally, virtual phone system providers may offer the option to add more users at a higher cost.

Business app integrations

Many cloud-based phone systems offer integrations with popular business apps such as Slack, Zendesk, and Office 365. These integrations can make it easier for employees to communicate and collaborate, but they can also increase the virtual phone system pricing.

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Location of extensions

The location of phone extensions can impact cloud-based phone system pricing in a few different ways. For example, if your business has a large number of extensions in common areas such as lobbies and conference rooms, you may be able to negotiate a lower price with your vendor. This is because the cost of servicing these extensions is typically lower than the cost of servicing extensions in individual offices.

This can help businesses save money on their cloud-based phone system by reducing the number of extensions they need to purchase.

Length of plan

The length of a cloud-based phone system contract can also affect the price. For example, a plan with a 60-month contract may be less expensive than a plan with a 12-month contract. This is because vendors often give discounts for long-term contracts, as they provide a predictable stream of revenue.

What is the ideal price for a cloud-based phone system?

The ideal cloud-based phone system pricing will vary depending on the size and needs of your business. In general, you should look for a phone system that offers the features and capabilities you need at a price that is within your budget. It's also important to compare virtual phone system pricing from different vendors to ensure you're getting the best value for your money.

 

What are the various pricing models for a cloud-based phone system? 

There are several different pricing models available for cloud-based phone systems. Depending on the type of business you have and the number of calls you make and receive, one of the following models may be the best fit for your needs:

Pay-per-use

The pay-per-use virtual phone system pricing model is a flexible option that allows businesses to pay only for the calls they make and receive. This can be a good option for businesses that don't make many calls, such as small retail stores or home-based businesses. It can also be a good option for businesses with fluctuating call volumes, such as seasonal businesses or businesses with variable customer demand.

Flat rate

In the flat rate cloud-based phone system pricing model, businesses pay a fixed monthly fee for unlimited calls. This can be a good option for businesses that have a consistent number of calls and a predictable budget. For example, a small business with a handful of employees who make and receive a consistent number of calls each month may benefit from a flat-rate pricing model.

Per-user

The per-user virtual phone system pricing model is a popular option for businesses with a large number of users and consistent call volumes. In this model, you pay a monthly fee for each user on the plan, regardless of how many calls they make or receive.

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Custom

Custom pricing plans that are tailored to the specific needs of your business may also be available. This can be a good option if you have unique requirements that don't fit into a standard virtual phone system pricing model.

Final thoughts

In conclusion, the pricing of a cloud-based phone system depends on a variety of factors, including the features included in the plan, the number of users on the plan, business app integrations, the location of extensions, and the length of the contract.

The ideal virtual phone system pricing model will vary depending on the needs of your business, and it's important to compare prices from different vendors to ensure you're getting the best value for your money.

There are several pricing models available for cloud-based phone systems, including pay-per-use, flat rate, per-user, and custom pricing plans. Choosing the right cloud-based phone system pricing model for your business is essential to get the most out of your daily communications.

Ring4’s cloud-based business phone system starts at just $8 per month making it one of the most affordable solutions on the market. Click here to try it for free today!

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