How do you feel when you receive your phone bill? For entrepreneurs, it can be frustrating to read their business phone bill because of all the confusing charges and marketing pamphlets, return addresses, stamps, and envelopes.
Unexpected fees popping up on your bill can make anyone mad. Even better, what are those line items on your billing statement?
We feel your pain. Many companies pay more for their phone bills than they use. This guide will help you understand your business’s phone bill and show how you can cut costs by up to 60%.
6 Ways to reduce your business phone bill
- Learn what your business phone bill includes
- Calculate your total cost of ownership
- See if you have any invalid charges
- Understand your operational needs
- What business phone features do you need?
- Consider switching to VoIP.
1) What does a business phone bill include?
Reading your company’s telephone bill is not like filing taxes.
Unorganized phone bills are designed to make it easy for you to pay your bill without thinking about any fees or charges. You will pay the fees without question, but a flurry of them is deliberate.
Let’s start with the basics.
These are the essential items on your business phone bill:
- Phone Use: Usage for all phones within your company. This typically covers your basic phone service and long-distance and roaming charges.
- Calling plan: A phone service that lists the minutes of talk or unlimited use per phone.
- ServicesAdditional services included in the calling plan will also be listed here. You shouldn’t be surprised to see separate charges of approximately $2-5 per call. The phone companies know that you won’t call them to cancel. Call forwarding, call waiting, and three-way calling are some examples.
- Devices –Details about purchased or leased hardware, including Voice Over Internet Protocol cell phones, and devices that retrofit older PLATS (Plain Old Telephone Service), are listed here.
- Late Fees If you owe a balance after the grace period has expired, you may have to pay a late fee.
- Discounts If you have a special discount offered at the beginning of your service, it may be listed here. Do not be surprised if your discount disappears after the initial period.
- Fees, surcharges, and taxes: This one is the most bothersome. Uncle Sam is responsible for any charges, but not all. Carriers can pass on fees for administrative, regulatory, and sales taxes. Universal service and business license fees are also optional.
Federal Communications Commission (FCC) recommends that consumers regularly review the phone bills to understand the charges they are paying fully.
2) Calculate your total cost of ownership
Many business owners don’t consider the cost of owning a phone system when setting up their service. The benefits of a hosted/leased phone system over owning a depreciating asset can unlock huge business growth.
Here are the steps to calculate your total ownership cost:
Initial Costs + Maintenance + Recurring Charges x Time
These total costs would be included in a traditional phone system that uses a PBX for calls to be transferred over a network.
- Telephones
- PBX system
- Legacy wiring
- IT staff
- Server room
- Internet connection
The cost of a VoIP telephone system includes the following:
- VoIP Phones
- VoIP service
- Internet connection
If your computers have already been wired up, you can use the same Ethernet cable to power your desk phones. You might not need phones. You can use your smartphone, desktop, or laptop for business calls.
You can realize the grant amount instead of the monthly fee by calculating the cost of ownership. A small business owner may not choose the cheapest option.
3) See if you have any invalid charges
Many business phone plans have simple pricing and consistent pricing. If you are one of these unlucky people, you may be charged insanely high fees. These are the three things that you can do to reduce high fees:
- Stop paying minutes. Limit your business to 1000 minutes. You’ll go over your monthly limit, especially if you have to sell or support a product.
- You can block premium toll fees by asking your phone provider.
- Limit international calling. Without VoIP phone service, one overseas call can cause a major disruption to your business phone bills.
It doesn’t hurt calling and asking for credit, even if charges are valid. This might not always work, but it is better than letting your phone company ignore you.
It’s enough that you’ve worked hard for your money. Don’t give it away as service fees.
4) Understand your operational needs
Businesses cause the most expensive business phone bills to outgrew their existing infrastructure. You might no longer be eligible for the same discounts if your business has grown.
You must plan for growth when choosing a phone provider for your business. These are some questions that you can ask to help you evaluate your needs and choose the right provider for you.
- Is the pricing simple?
- Will it be an introductory price, or will it remain the same?
- As your company grows, can you add more telephone lines?
- How will your employee headcount change in a year?
- Are you able to operate from multiple locations?
- Are your employees able to make business calls from outside the office?
- If you have any questions, can you reach them immediately?
These questions may seem easy, but you need a phone company playing games with you.
5) What business phone features do you need?
You don’t need to have a dozen features to appreciate your business phone service. You only need a reliable service, a simple bill, and the right features to serve your customers and company.
I spoke with many business owners, and they shared their top features with me.
- Unlimited nationwide calling for leads and customers
- Faxing online: Send and receive faxes without any hardware
- To entice leads to answer the phone, create a custom caller ID
- Callers will be directed to the appropriate person by an Auto Attendant
- Toll-free numbers (e.g., 800, 866) that make them appear larger than they are
- A mobile app that they have installed on their Android or iPhone so they can use it outside the office
- Voicemails sent to your email
It’s up to your business, but these are the most important features that successful businesses value.
6) Consider switching to VoIP
Landlines are not cheap. That’s what I understand. You don’t need a phone company. All you need to do is get a broadband internet connection. Many phone companies won’t tell you that you can take your phone number with you. It’s true!
A decade ago, internet telephone services cost business owners more than $50 per line. It costs $20 per month for each user. You get all the features you need, including voicemail-to-email, an automatic attendant, and HD-quality calling.
Switching to VOIP can reduce your company’s bills by up to 60%. It’s an easy choice with low international calling costs, no setup fees, and unlimited nationwide calling. The efficiency and lower cost of VoIP are too much for phone companies.
