How Much Does a Business Phone System Cost in 2024?

A business phone cost is dependent upon the type and the features of the device you need, but on average, a basic business phone system costs about $90 per month, while a more advanced system for larger companies costs around $712 per month.

While phones are essential, they can be a significant expense for small businesses. If you’re looking for a new phone system or a replacement, it’s good to know that businesses typically update their phone systems every seven years. Choosing the right phone support service can help you scale your operations while making you save money.

Let’s discuss the types of business phones and how much would they cost you. 

Note: since the cost ranges between the packages you choose, we have taken the average of monthly costs. Moreover, we have also considered the maintenance and setup costs in the monthly costs.

Types of  Business Phones

There are many types of phone systems available in the market that depend on your business needs and requirements. Each of them comes with unique costs depending upon the plan you choose.

Some of the mainstream types are discussed below:

• Traditional Landline Systems
• Modern Phone Systems
• Hybrid Systems

Traditional Landline Systems

Small businesses majorly use a traditional landline system. It has multiple phone lines that are controlled directly by the users. Such a system is used by companies that prefer having a physical infrastructure or small businesses with limited resources. 

Here are some types of traditional landline systems that you can consider: 

• Analog Phone
• Key System Unit
• Private Branch Exchange

Features of a Traditional Landline System 

• Caller ID
• Call Waiting
• Call Forwarding
• Voicemail

Cost of Traditional Landline Sytem

Here’s the pricing breakdown of a traditional landline business phone system: 

• Initial Setup Cost: The initial setup cost for a traditional landline system ranges from $400 to $600, depending on the scale of operations. 
• Monthly Fees: You would be charged between $30 to $50 per month for using such a service for communication. 
• Maintenance Costs: Businesses would be charged between $50 to $100 per visit for routine maintenance; $100 to $200 for equipment replacement; and $5 to $10 per month for maintenance plans.

Modern Phone Systems

A modern system is majorly used by small businesses and enterprises that have operations across the country. This system helps support businesses that have gone remote and want some face time with the manager without visiting the office. 

Here are some types of modern phone systems that you can consider: 

• Traditional On-Premise PBX
• VoIP PBX
• Hosted VoIP Phone System

Features of a Modern Phone System 

• Interactive Voice Response
• Call Analytics
• Integration with CRM
• Mobile Integration
• Video Conferencing
• Presence Indicator
• Softphone Application
• Disaster Recovery

Cost of Modern Phone Systems

Here’s the pricing breakdown of a modern business phone system: 

• Initial Setup Cost: The initial setup cost varies depending on the number of employees. If you have 11 to 50 employees, a basic VoIP phone system would be installed ranging from $2,000 – $10,000. This includes hardware such as IP phones. 
• Monthly Fees: You would be charged between $20 to $30 per user for using such a service for communication. 
• Maintenance Costs: If the modern phone system is on-site, the average maintenance cost will range from $500 – $2,000 per month. 

Hybrid Systems

A hybrid phone system is best suited for SMEs and businesses that are based in multiple locations. For example, if you have multiple offices across the USA, getting a hybrid phone system would make sense. This would ensure that conversations with clients and employees remain streamlined and nothing is lost in translation. 

Here are some types of hybrid phone systems that you can consider: 

• Hybrid PBX
• IP-PBX Systems with Analog Gateways
• Cloud-Based Hybrid Systems
• Unified Communications (UC) Hybrid Systems
• SIP Trunking with Legacy PBX

Features of a Hybrid Phone System 

• Interactive Voice Response
• Call Analytics
• Integration with CRM
• Mobile Integration
• Video Conferencing
• Presence Indicator
• Softphone Application
• Disaster Recovery

Cost of Hybrid Systems

Here’s the pricing breakdown of a hybrid business phone system: 

• Initial Setup Cost: The initial setup cost varies depending on the service provider you opt for. The initial setup cost for hardware (including switches and installation) varies from $1000 to $1500. Whereas you can get software licenses for about $500 to $2000. 
• Monthly Fees: As a business, opting for a hybrid business phone system, your monthly fees would range from $500  to $700. This amount can vary depending on the phone lines you require.  
• Maintenance Costs: In a hybrid phone system, the maintenance cost is between $100 to $350 per month,  depending on how well-kept the system is. 

Outsourcing to HiredSupport

Most of the businesses run their operations without considering the alternative of outsourcing. For example, even if you install these phone systems, there are additional costs as well and these are – staff costs, technological integrations, and hardware costs.

By outsourcing to HiredSupport, you’d spend zero dollars in setting up phone call systems for your businesses. HiredSupport can do it for you for free and will only charge you the cost of humor labor (that too starts at an affordable rate of $7/hr).

Features of Outsourcing to HiredSupport

Following are the features you get by outsourcing to HiredSupport:

• Scalability on Demand
• Cost Efficiency Perfected
• Expertise at Every Interaction

And many more!

Cost of Outsourcing Call Systems to HiredSupport

HiredSupport stars from $7/hr, and offers a free trial as well.

Choosing the Right Business Phone System

Ask yourself the following questions when researching a business phone system for your company. 

How Many Business Phone Systems are Needed?

As a stakeholder, you should analyze your company’s demands and how many phone lines are necessary. You can’t solely rely on an estimation of users as it would end up costing you more, even one extra phone line would mean additional maintenance costs. However, keep in mind that your clients should be able to reach out to you 

Pro  Tip: You can consider a single phone line for reception, postal mail, and general appointment setting. A single line of a business phone system in this situation is more than enough for a large number of employees. 

What Features do I Need in my Business Phone System?

Here, businesses have two options. They can either opt for a basic phone service package ideal for receiving long-distance and local calls. But on the flip side, having additional phone services can help improve the company’s productivity and efficiency. 

Pro Tip: Opt for add-on services such as conferencing, integration with CRM and ERP, and contact center support. This will help streamline the internal processes of your business. However, do keep in mind the more add-on services you choose, the higher the cost of your business phone system. 

Which Phone Model Should I Choose for my Business?

The cost of a phone varies depending on which model or brand you opt for. If you choose a generic model the price would be less when you compare it with a branded one. 

Does My Business Need a Phone System at One or Multiple Locations?

If your business has 20 customers at one location, the installation costs will be lower than setting up phone lines at multiple locations. Adding more sites can increase the overall expense of your phone system.

Whether you have one site with ten employees or ten sites with many employees each, it affects the cost. Some companies charge a fee for each location, which can significantly increase your expenses.

Learn More: Customer Service Outsourcing Pricing: A Comprehensive Guide

Conclusion

HiredSupport is a business phone system company that offers flexibility and cost-effectiveness through cloud telephony. It’s an ideal choice for businesses looking to enhance communication and customer service.

The average cost of phone support systems starts from $20 to $40 for the basic monthly plan. In contrast, HiredSupport offers advanced phone support without any cost and an agent rate that starts at only $7/hr. If you are uncertain about the quality of service, consider opting for HiredSupport’s 7-day free trial. Think of it as a test drive before you buy a car. 

This phone support agency has 4.9 out of 5 stars on Clutch, making it a reliable option for business owners. Contact them today and book your free trial.