Why size matters when choosing a VoIP package?

As the economy slowly makes a comeback after the 2008 recession, many companies are looking for ways to reduce their fixed costs and generate more room for profit. As a type of business expenditure, fixed costs are monthly bills that are unavoidable, such as utility bills, phone bills, and transportation services. For many companies, reducing fixed costs can be a life-saver when profits change due to economic turbulence.

How the economy is changing business communication

As Voice over Internet Protocol (VoIP) technology becomes faster, more efficient, and clearer, many companies are seeking to reduce fixed costs by replacing their phone lines with VoIP lines for their cheaper rates of cost and their clearer connection to clients.

When choosing a Voice over IP provider for your business, several considerations are necessary. Whether you're a small business or a larger corporation, the advantages of different providers may suit your needs in different ways. VoIP companies will often provide incentives to clients such as installation of free second lines, for example, while others will have different monthly rates in place for different reasons.

Usually a business' choice in VoIP service will have to do more with the perks offered by different providers rather than cost, since most VoIPs are known for their lack of expense and their tendency to charge under $20 per month for a basic business account.

Whatever your needs in business communication, researching what you want out of a VoIP provider is the best way to get started on a rewarding road of savings in communication. Here are just a few points to consider when making the right choice.

1. What is your monthly phone bill? What are you trying to save?

Depending on the size of your company, comparing the cost of basic phone plans as compared to the use of broadband internet will give you a good idea of phone lines costs versus VoIP use. VoIP companies tend to charge slightly under $20 per month (some well under that amount), while a few higher-end companies can charge upwards of nearly $40 per month. Conversely, companies that provide free VoIP may not convey the bandwidth or representative needs of your company, and might better be avoided.

If you are a company already using internet as a basic service, while employing only a few office workers, VoIP companies may essentially make communication free, and often with clearer sound and connection than phone lines when speaking to clients and colleagues.

2. What will the increase in utility costs mean to you?

If your office is small and your phone bill is comparable to that of a VoIP provider, you might want to take a moment to look before you leap into the often wonderful world of VoIP. Traditional phone lines tend to be powered by phone companies, whereas VoIPs will be powered by your company's computers, and therefore by you on your utility bill. If you are a large company with workers making calls throughout the day, you may find yourself with a larger electric bill, even if you are saving on phone costs. Check with companies first to see what the average business pays for their services in fees and utilities, and you'll get a better sense of hidden costs.

3. Who will you be communicating with?

Furthermore, asking whether your company engages with international clients is an enormous question when considering which VoIP provider to use. Because traditional landlines tend to create enormous costs for such communications, small rates such as .01 cents per minute, or even free connections, are often the norm with VoIP providers. Depending on how much international business your company does, and how large your company is, opting for a company with free international calls may help you avoid smaller aggregation costs.

Whichever company you choose, understand that there are many ways to reduce communication costs and end up saving a great deal on fixed expenditures. Along the way, you may just find the provider for you, and a higher profit margin for the year.

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