Home » Newsroom Posts » Stop Overpaying! The Ultimate Guide to Cutting Business Telephone Service Costs – Small and Medium-Sized Businesses
October 7, 2024 | By Shirmattie Seenarine
TL;DR: This blog breaks down how to audit your current phone bill, identify unnecessary costs, and negotiate with providers for better deals. Whether you’re using analog or cloud-based systems, you’ll learn how to maximize savings by leveraging your current equipment and avoiding unnecessary fees. By transitioning to a cloud phone system, you can improve scalability, eliminate maintenance headaches, and ensure business continuity.
Understanding your telecom expenses is not just a matter of managing costs; it’s a crucial step in safeguarding your business’s financial health. These expenses can become a hidden drain on your budget if left unchecked.
This article and its comprehensive checklists are your tools to stop overpaying and take command of your business phone service. It’s time to understand what you’re paying for and make informed decisions. Here’s what to look for when you log in to your telecom account or read your business telephone service bill:
Whether your business uses analog phones or has already transitioned to a cloud phone system, unnecessary or unexpected fees can be a significant issue.
Whether your business uses analog phones or has already transitioned to a cloud phone system, unnecessary or unexpected fees can be a significant issue.
Many businesses, especially those with analog phone systems, pay for multiple phone lines. These often include rollover numbers, which are additional lines tied to the primary business phone number. Rollover numbers allow incoming calls to be automatically redirected to another line if the primary line is busy. However, most companies today find they no longer need as many rollover numbers. Overlooking rollover numbers means paying for lines with little or no traffic.
Keep going if you find a great cloud-based phone system provider. Ask about free add-ons and phone features.
Switching from analog phones to cloud technology is more than just a trend—it’s a strategic move that can lead to substantial savings and improved business operations. Here’s why making the switch could be one of the best decisions for your company:
Traditional phone systems require ongoing maintenance, often resulting in downtime and repair costs, not to mention regular maintenance fees passed on by your phone provider. On the other hand, cloud-based systems are maintained by the service provider, relieving your business from the burden of system upkeep, and ensuring your operations remain smooth and uninterrupted. Cloud-based systems alleviate maintenance hassles, allowing you to focus on your core operations.
Many businesses experience a significant reduction in their monthly telephone bills after switching to the cloud, largely because it eliminates the need for multiple lines, maintenance contracts, and the hidden fees associated with analog systems. These can lead to substantial cost savings, providing your business with a more secure financial future.
One key advantage of cloud-based systems is their resilience. In the event of a power outage or disaster, your phone system remains operational because it’s hosted remotely instead of on-premises. Remote hosting ensures that your business can continue operating and communicating with customers, providing a sense of security and preparedness for unforeseen circumstances.
As your business grows, so does your need for additional phone lines. Cloud systems allow you to easily add or remove lines as needed without new hardware installations. This flexibility ensures your telecom system grows with your business rather than holding it back.
Start by reviewing your current bill in detail. Record all the charges, including the number of telephone lines, maintenance fees, and any other recurring costs. Consider whether you still need all the rollover numbers or if they're merely adding to your expenses without providing real value.
Determine if you're locked into any long-term agreements that might include penalties for early termination. Knowing this will help you plan your transition to a new provider without unexpected additional costs.
Contact 3-4 cloud phone service providers to get quotes. Ask for a complete breakdown of all fees, including taxes and additional charges, so you understand the actual service cost.
If you're moving to a cloud-based system, you must replace your old analog phones. Some providers offer rental options, while others may include phones at no additional cost. Be sure to factor these costs into your decision. If you have previously migrated to cloud telephony, determine whether your existing phones belong to you or the provider. If they were purchased, determine whether they are compatible with the new provider's system. If they are, use this as a point of negotiation. Providers often offer discounts when you bring your own devices, as it reduces their costs.
Ensure your business locations have the network connections to support a cloud-based phone system such as Power over Ethernet (PoE) switches. If not, plan to upgrade these connections before making the switch.
Work with your chosen cloud phone service provider to set a porting date—the date your phone numbers will transfer from your old provider to the new one. If you are migrating from analogue phones to cloud telephony, avoid disruptions by ensuring your new phones are set up and evaluated before this date. On the porting date, your old phones will stop working once your phone numbers are moved to the new phones, which will be operational after porting is complete. If you are simply switching between cloud phone providers, work with your chosen cloud phone service provider to set a porting date. If you're concerned about potential disruptions, ask for temporary numbers from your new provider and forward calls from your current provider to your new one during the transition until you have been officially moved to the new provider. Note that not all providers provide temporary numbers.
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