How to Save on Your VoIP Bill: Saving Strategies to Cut VoIP Expenses

Reducing costs is one of the key reasons you switch to Voice over Internet Protocol (VoIP), but what happens when your VoIP bill is higher than expected? While VoIP is cheaper than landlines, improper management or an unsuitable provider can lead to high bills.

That’s why it is important to take steps to save on VoIP bills, whether you’re a business or an individual customer. Factors like extra support, more extensions, new features, international calls, and internet consumption can all add up, leading to unexpected VoIP expenses.

In this article, we explain how to save money on your VoIP bills by choosing the right plan and provider. You also need to regularly monitor your VoIP usage to make sure you’re within preset thresholds. Luckily, there are a few simple ways you can lower VoIP costs without overhauling your calling systems completely.

Main Culprits for High VoIP Costs

VoIP is a technology that lets you make calls via the internet by converting the analog signals of your voice into digital signals that can be transmitted over broadband lines. Like regular phones, you have a dedicated VoIP number and can make calls via devices called IP phones.

The costs of VoIP depend on a number of factors, such as the cost of your internet connection, the hardware/software you use for calling, the number of VoIP users, and the volume of calls they make. With so many variables, it can be difficult to keep track of your VoIP expenses.

1. Higher Than Expected Call Volumes

An organization (especially small businesses) may start off by thinking they are only going to make a few calls a month and not even consider that they may need SMS or MMS facilities. But as your business grows, so do your call volumes, leading to higher bills.

For example, you may have a higher-than-average number of customer calls for two to three months a year, during the holiday seasons. Without appropriate planning, your VoIP bill may come as a shock during these months. Also, call volumes may rise after you launch a new product or hire new employees.

One way to resolve this is to select a VoIP provider, such as Vonage, that offers unlimited calling, without any caps. That way, you can easily handle unexpected call volumes without buying extra minutes, which are often charged at a premium. Another approach is to monitor your VoIP usage more closely, as we discuss later in this article.

2. Frequent and Unplanned International Calls

You’ll find VoIP providers with free domestic calling, but international calls are a different matter. Calls to countries other than the US and Canada are typically charged at anywhere between $0.10 and $7 or more per minute. A few international calls a month can add significantly to your VoIP expenses.

Businesses should evaluate their calling needs before investing in VoIP and audit their current and projected requirements. If there’s any scope for international calls, you should plan ahead. Fortunately, some providers offer dedicated calling plans to address this.

For example, Voiply offers unlimited international calling in 50+ countries, one of the few VoIP companies to offer this service. Ooma also has a World Plan for non-business users in the US, enabling unlimited calling to landlines in 60+ countries.

3. Unnecessary Feature Bloat

Another reason for high VoIP costs is that many plans include features you may not need. For example, a small business may not need built-in call recording storage. If you don’t operate a contact center, then advanced quality assurance features may not be useful.

When businesses opt for a one-size-fits-all plan, they may end up paying for unnecessary feature bloat. It’s a better idea to start small and then scale up to premium and enterprise features as your business grows. Factor this into your research to prevent being influenced by ‘gimmicky’ features.

However, bear in mind that certain VoIP features are absolutely essential. For instance, you may not need to integrate VoIP with other apps right away, but integration readiness is a must-have feature for any business adopting internet telephony.

Know which VoIP features matter the most to you – now and in the next few quarters – when choosing the best VoIP provider for your business.

4. Not Reading the Licensing Terms and Conditions

Most VoIP providers promise transparent pricing, but there are typically some essential details hidden away in the small print. The same plan may incur different costs per user for teams of different sizes. Additional taxes may be levied at anywhere between 5% and 10%. Advertised discounts may also be subject to terms and conditions.

Procurement teams need to conduct in-depth research to understand the actual cost of purchasing a VoIP plan. Apart from the flat fee multiplied by the number of VoIP users, this will include costs such as getting new numbers, additional extensions, and installation fees.

Fortunately, many companies will clearly tell you about the fine print right at the purchase stage – read these details carefully before you buy. You can also reach out to the sales team and ask for a demo fitted to an organization of your size to understand the actual scope of VoIP expenses.

5. Poor Customer Service and On-Site Support

One of the things about VoIP implementations is that they’re never ‘set and forget.’ You need to maintain your VoIP systems, for example, by removing defunct numbers, adding extensions, replacing hardware, and re-configuring VoIP security settings. The service may also experience downtime occasionally.

When such interruptions happen, you’ll need to rely on the vendor’s customer support team.

Remember, most telephony users will be non-technical personnel who will need help learning the system as well as troubleshooting. As VoIP is an essential service for most companies, prolonged downtime can cost your business. If the vendor can’t fix the issue remotely, you may have to pay extra for onsite support.

Therefore, it is crucial to select a vendor with good customer support, available on chat, email, and telephone, preferably 24/7. If you’re a large business, choose a plan with a dedicated account manager and priority support, like the ones offered by Voiply. This makes sure you don’t face unexpected VoIP expenses from poor post-sales support.

Monitor VoIP Usage to Save on Your VoIP Bill

Most businesses will monitor VoIP usage to ensure top-notch calling experiences. For example, VoIP monitoring can tell you if there is too much latency or any jitter interrupting your calls. However, another benefit of monitoring call data is that it helps you save on your VoIP bill.

There are two ways to monitor your VoIP usage.

1. App Analytics

Every VoIP platform provides usage data in the form of dashboards and reports. These explain how many numbers and extensions you have, the type of calls you make most frequently, activity patterns for specific users and teams, and any other custom metric you want to measure.

Nextiva, for instance, provides several options to monitor VoIP usage in real-time and in the past.

To save on your VoIP bill, keep an eye on the number of international calls per month and if there are any sudden spikes. If certain teams make very few calls per month, then it might make sense to scale down the calling infrastructure.

Remember to incorporate VoIP reports into quarterly budgeting discussions. It can also be helpful to consider the business outcomes from calls (for example, sales made over the phone or a higher satisfaction score) to understand if your VoIP bill is worth it.

2. Call Detail Records

A call detail record (CDR) is a comprehensive document with all the information about a specific month’s VoIP billing, including the number of calls and their location, text messages, and data consumption.

For individuals, the CDR will typically comprise a couple of pages, but for businesses, this is a far more in-depth report. You can ask your VoIP provider for CDRs at any time. Apart from explaining the billing, it’ll also have your account details and security information.

Businesses should monitor CDRs every month to check for costing patterns and anomalies. Small businesses can do this manually, while bigger ones can integrate CDRs with business intelligence software to automate some of the monitoring and analysis.

Compare Providers to Estimate VoIP Expenses

Businesses looking to reduce their VoIP expenses should thoroughly research different vendors, the rates and services they offer, and what’s likely to save you the most in the long run. While it’s tempting to switch vendors when costs start to climb, be careful and take time to research things .

As a best practice, shop around once a year to check out new offerings, and if any leading providers are offering discounts. Between Thanksgiving and New Year is a good time for your annual VoIP review, as you can benefit from seasonal sales and discounts.

Once you’ve decided to switch to a new VoIP provider, evaluate the contenders on a few key parameters. These will help you save on monthly costs and make sure that bills remain predictable:

Often, the pricing shown on a VoIP provider’s website is the basic cost, and several other charges will be included in your final monthly bill. As a result, more expensive vendors may actually turn out to be cost-effective in the long term.

That is why you need to conduct thorough research, request demos, and peruse detailed reviews of VoIP providers to understand precisely how they compare against each other.

Maximize Cost-Effective VoIP Features

A great way to save on your VoIP bill is to maximize the features on offer. A good VoIP service will help your business reduce costs in several ways so that your telephony investment is worth it. Check out the following features of VoIP that can help your business achieve greater cost efficiency.

1. Auto-Attendants, Virtual Receptionists, and IVR

Interactive Voice Response (IVR) is a technology that lets your callers self-serve when your employees or customer support agents aren’t available. This tool is sometimes called an auto attendant or a virtual receptionist.

Let’s say a high-value customer calls your business after 17:00. It will either go to voicemail, letting the caller record a message but leaving them frustrated because their problem isn’t resolved, or you have to spend more on having a team in place after working hours.

Instead, IVR allows customers to find a solution to their problem by pressing certain digits on the phone or through voice commands.

For instance, a bank’s IVR could relay the customer’s account balance when they press ‘5’ on their keypad. For an e-commerce business, simply saying ‘cancel my order’ can initiate the cancellation process without needing a team in place 24/7.

2. Call Recording and Voicemail Transcriptions

In businesses where a lot of information is exchanged in calls, call recording and voicemail transcriptions can save you time and money. Let’s say an advertising agency regularly receives its briefs over the telephone. A built-in transcription feature automatically creates a text version of everything that was discussed.

Using transcriptions, employees can improve their productivity, which saves costs. Industries like healthcare and banks can leverage this feature for compliance, avoiding fines.

3. Any Feature with Unlimited Usage

If your organization overwhelmingly relies on a single feature like domestic calling or VoIP-based video conferencing, then a no-cap facility really helps. It removes the need to closely monitor usage so you never cross the usage threshold. It also lets you grow freely.

Some features where you might find unlimited capabilities include domestic calling, internet fax, conference calls (with a limit on participants), video calls, and video conference recordings. As we previously mentioned, providers like Voiply offer unlimited international calls as well.

However, check with your vendor about any reasonable use policy so you can calibrate your expectations.

4. VoIP Softphone Apps

VoIP services are usually accessed through software apps on smartphones and PCs, called softphones. These apps come with all the features you can expect from a telephony service, including a dial pad, a contact list, an SMS inbox, call forwarding/transferring options, and voicemail.

By using softphone apps, businesses don’t need to purchase dedicated calling hardware. This can save you a lot of money, since each handheld device costs between $60 and $100 at least. A contact center can save thousands of dollars by replacing landlines with softphones.

Further, you can set up softphone apps remotely and in bulk, unlike a physical device. They incur lower labor charges and don’t need to be repaired in case of wear and tear. This proves highly cost-effective in the long term.

5. High Uptime, Preferably 99.999%

Uptime refers to the percentage of hours in a year when you can expect the VoIP service to be available. A good provider will offer uptimes over 99%, and top providers offer 99.999% or five-nines uptime as part of the service level agreement. This means you’ll face less than 26 s of downtime a month.

Uptime is an essential cost-saving feature of VoIP because it ensures uninterrupted business operations. You can continue to interact with customers, provide your services, and keep systems up and running without any dip in revenues.

6. An Integration Marketplace

As a VoIP user, you’ll need to fetch customer data from the CRM and into your calling system. You may want call alerts to show up on your collaboration platform. To achieve this, there has to be a seamless dataflow between the two apps through a piece of code called an application programming interface (API).

However, it takes a lot of technical skill to design an API from scratch and incorporate it into your existing code base.

You can avoid all of this by accessing a VoIP company’s integration marketplace with ready-to-download and install connectors.

An integration marketplace (also known as an app gallery) is a downloadable list of all the app integrations a VoIP provider offers. It looks exactly like the app store on your mobile phone, just for business software. Not all VoIP companies have an integration marketplace, but it can save you the costs typically incurred in building and maintaining integrations.

Anyone can use the integrations, including team managers, saving you the cost of assigning technical resources. New business opportunities unlocked thanks to the integration also improve your bottom line.

7. Free Number Porting

If you’re switching from landlines to internet calling or migrating to a new VoIP provider, a free number porting service can lower your VoIP expenses.

Traditionally, the porting process is complex and time-consuming, with several documents exchanging hands and a few weeks of wait time involved. But the right provider will complete the porting process for you, set up your new numbers, and help you assign new users with ease.

Certain vendors, like Nextiva, include free porting services with all their VoIP accounts. This means you can retain your old phone numbers and save the costs of buying new ones (until you need them) without paying an additional fee for the porting service.

Can You Negotiate Your VoIP Costs with Providers?

Most VoIP providers will share their pricing with you upfront, typically through interactive cost calculators or pricing sheets. However, it is possible to negotiate costs by following a few simple tips.

The simplest and easiest way to negotiate a favorable price is by finding a vendor that offers a custom pricing model. For example, Vonage offers custom VoIP pricing to companies with 100 or more employees. Check the pricing page, and if there is a ‘Contact Sales’ or similar option, you will probably be able to negotiate the cost.

Another way to negotiate pricing is to request a demo. Certain companies, like Nextiva, will let you demo the platform before you make a purchase, which starts a conversation around pricing. Once you have demonstrated your interest in purchasing the VoIP service, you can negotiate a better price.

Finally, you can negotiate your VoIP cost by completing the purchase process on the phone instead of online. Most providers will list a number you can call to subscribe to their VoIP services. This gives you the opportunity to interact with the salesperson and negotiate a little.

Companies in certain industries, like non-profit organizations and educational institutions, may get special deals. Ask your provider if your company qualifies for any such discounts.

If you’re open to a bit of cross-selling and upselling, then purchasing another product from the same provider (such as an IP phone) could make you eligible for a discounted rate.

How to Compare VoIP Providers

Our extensive VoIP tests and reviews reveal four providers offering the best ‘bang for your buck’ when it comes to VoIP expenses. Each has a unique VoIP feature that can help you reduce costs and simplify business operations to make the most of your investment.

The most cost-efficient VoIP provider isn’t always about pricing but depends of the features you need. Thoroughly research the best VoIP providers available, assess their suitability for your use cases, and sign up for a trial, so that if you aren’t satisfied, you can get your money back in 14–30 days.

Save on Your VoIP Bill: Key Takeaways

Businesses switch to VoIP for one crucial reason: it delivers better performance and features at a significantly lower cost. Vonage reports that you can save 50%–75% on overall phone costs and reduce domestic calling bills by 40%. However, sometimes, your VoIP bills can be higher than expected.

This can be due to licensing fine print, which may charge smaller teams a higher price per user for the same plan. Or, hidden charges like cost recovery and emergency fees could add to your phone bill. Businesses may underestimate their calling requirements and incur higher VoIP expenses when they cross a certain threshold.

That is why it is important to be vigilant about your VoIP usage and vendor selection if you want to save on your VoIP bill. Fortunately, there are several affordable vendors out there that offer an impressive set of features at a low, predictable price point.

Do your research before subscribing to a VoIP plan, and review your VoIP billing and returns on investment at least once a year.

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