VoIP based Business Phone Systems have a lot to offer. The flexibility and feature sets are hard to beat when compared with a traditional PBX based system or anything the big telcos have to offer. If you’re interested in reading what we think are the most important benefits of cloud hosted VoIP phone systems there is an article you can read on our blog called 5 key benefits of a cloud hosted VoIP phone system for small businesses.
Despite all those benefits, the most common question we are asked by prospective clients is “will it save us money?”. Well, we decided to look at our 10 most recent new system deployments to find out.
Let’s dive right in. Here are the numbers for the last 10 phone system deployments we’ve completed. When we onboard a new customer, we’re required to obtain a copy of the most recent bill from their existing provider. We’ve taken out the cost of services such as White Pages listings and Internet leaving us with just the cost of the phones. We’ve then tallied up the cost of the new hardware and calculated the monthly savings, 3 years savings and how long it will take the customer to recover their setup cost:
|Previous Monthly Bill||Setup Cost||New Monthly Bill||Monthly Savings||Savings %||ROI (months)||3 Year Savings|
These 10 customers are now saving $4,599 per month totalling $136,057 over the next three years. On average these customers will recover their upfront investment (if there was one) in less than 2 years and in some cases as little as 4 months. If existing SIP handsets can be used, the ROI is instant.
The average saving per customer is $460 per month or $17,007 over 3 years. That’s between 11% and 74%, with the average being 50%.
What do these numbers tell us?
Most businesses will find significant savings on their business phone costs by moving to a VoIP based system. If the existing services include hardware rental or are based on complicated and expensive ISDN connections the savings could be significant.
When we looked at these numbers, we were surprised to see that two of our newest customers will spend more over the next 3 years. However, both customers chose to move to one of our VoIP based systems because they wanted the features we were able to offer that weren’t available on their existing setup. The slight increase in overall spend has empowered those businesses with a more powerful and flexible phone system which can support their work from home objectives.
Even when factoring in the upfront cost of purchasing new equipment most businesses will find savings over three years.
Will my business get the same savings?
Every business is different. The type and size of the service your business requires along with the upfront cost of equipment all have a direct impact on the overall savings achieved monthly and over three years.
After assessing what type of service and the equipment you will need, our team will compare our proposal with your existing services to give you a clear picture of the changes to your costs going forward.
Caznet provides cloud hosted VoIP business phone systems to the small and medium business and education market across Australia.
- The previous monthly bill cost is based on the last invoice received by the customer before the new service is ordered. The cost includes phone costs only. Additional costs such as White Pages listings and internet have been excluded.
- The 3 Year Savings calculation factors in the setup cost.
- Setup cost includes all labour, handsets, power supplies and an extender module (if ordered) for the reception desk that was required to establish the new system.
- ROI is calculated by how long it will take for the customer to recover the setup cost based on the monthly savings.
- Where no setup cost is quoted, the existing hardware was used.