How much does a PBX cost?

Average prices for PBX system in 2019

If you buy a hosted PBX system for your business in 2019, the costs will cost between $27 and $55 each line. The initial costs of hardware can cost anywhere from $950 to over $3100. The total price on how many new phones or other pieces of tools you need to buy so as to get up and running. 

There are some low-cost solutions in the market that can get you in well under these benchmarks, such as virtual PBX services, but these kinds frequently fall short in the feature division compared to a traditional hosted system setup. But the cost of the PBX system varies depending on the particular phone service setup, which we will examine in this article.

How much does hosted PBX cost?

PBX phone system prices

The average price for a PBX system is around $1000 for every user or employee. For instance, the actual prices paid for PBX business phone systems encompass.

It is worth noting that the prices of $1,000 user can vary considerably depending on the size of the System you buy. While small businesses will mostly pay more, business with more than one hundred employees will pay less.

Factors influencing the cost of PBX system

Other factors that will influence the price of PBX office phone systems to encompass;

  • Types of phonesPrices vary depending on brands such as Samsung, AT &T. You will possibly save money in case you buy phones in bulk. If your present PBX phone system is several years old, your phones may not be compatible with modern ones, and may not be able to use the more advanced features. Upgrades to some analog phone systems are possible; but, it is essential to make a full cost comparison it can save you money in the long run.

When updating your telephones, you have two options available;

  1. Deskphone- Plugs directly into a router port and interfaces with VoIP service. They usually cost about $60 for each phone.
  2. Softphone- A phone solution used directly on your computer with a headset. Softphones cost range from $5.00 to $ 15 for each phone, excluding the headset.

Selecting a reputable, established provider assists make sure reliable service and competitive fees. Compared to the $ 5,000 it can cost to have on site-phone System, PBX offers an extremely cost-effective alternative. When comparing a PBX phone system to an analog on-premise PBX system, the flexibility, cost-effectiveness, and simplicity of a PBX make it an easy decision. 

  • The cabinetThis is the central operating unit or brains of your PBX, which can cost $1000 to $10,000 or more by itself.
  • Additional featuresAdding CTI and other more advanced functions will cost more money.
  • InstallationProfessional installation is a must, can be very complicated and costly, especially in case your business existing wiring will not work for a PBX system. Installation cost will depend on one or more of the following factors;
  1. Present or anticipated usage
  2. Number of phone users in the organization
  3. Number of sites required to be linked
  4. Sufficient network traffic for daily and weekly call traffic peak periods
  5. The location of the main System and its interconnections to other systems

Besides, the System requires maintenance, so for you communication to keep functioning optimally. This adds to the total cost you will eventually pay for a PBX system. The maintenance cost for hosted PBX systems is the responsibility of your provider. But you will still have to pay for the maintenance of gadgets you use, such as telephone systems.

The last factor to consider is that paying more upfront for a top, not system expandability will produce down the road, In the end, the total cost of ownership is a more reliable determinant of the cost than how much you pay upfront.

Budgeting for a PBX business phone system

When it comes to a small to midsize businesses, the best way to approximate the cost of a new PBX phone network is to use a per seat number. Per seat indicates the number of phones or extensions or in most circumstances, the number of users. As organizations become bigger, the cost for every seat reduces, so a new PBX for 300 seat company vs. a thirty seat company will be significantly small. Bearing this in mind a better round number to base a historical cost on would be $700.00 to $1, 000 for each seat. 

Smaller PBX phone systems, like a 20 seat business could very well get a new phone system in the $500 for every seat range, particularly can offer more features and a lower overall cost later when expanding the System, will most likely to get down into this range. That would end up being a $10,000 cost that would require to be budgeted for.

Handsets or phones make up a significant cost for a new phone system. Proprietary phones that match a specific manufacturer’s PBX each have a cost of between a basic range of $125 to #350 or even more. IP phones can range between $100 to $400, depending on the make and model.

The Grandstream GXP1760IP phone is a mid-range phone that can be purchased new less than $100. Actually, closer to $75 for every phone and this is for a phone that was just awarded the product of the year in 2017. 

What do you get for a cost of $700 to $ 1,000 for each seat?

To better understand these approximated ranges for a new PBX, you should understand that they are based on an installation of lightning protection, new phones, a PBX with attendant, a UPS battery back-up and all the voicemail features that are part of the System, complete setup and linking every phone to the PBX, and linking the outside lines to the System. The whole package will be set up with recordings for the attendant, options for callers to which extensions that they have would be routed to and the time conditions for callers after hours or otherwise. Basically, a phone system all set up and ready for daily business. These approximate would not encompass cabling, which in most cases should already be in place. Running and terminating a cable can typically cost about $160.00 to $190.00 for each cable.

How much does an office phone system cost?

Small business phone system costs

On average, a PBX phone system will cost $800 to $1000 for each user. A key business phone system will cost a business less as they run from $300 to $1000 per user. A KSU less system might be the best option for business with under ten employees. These inexpensive systems price out at about $100 to $250 for each phone.

Three types of office phone system

  • Private Branch Exchange, PBX, System
  • Key System
  • KSU less System

The main differences between them have to do with the number of extensions and types of features they can manage.

Key System

A system is suitable for the business with five to forty employees. It utilizes a central unit that manages multiple lines and extensions and telephones with multiple buttons and lights that show lines and extensions are in use. Whereas key systems are less flexible and customizable than a PBX system, they are also cheaper, costing around $300 and $1000 for employees.

KSU-less system

A KSU less system is a suitable small business phone system with less than ten employees. Instead, every individual office phone has the capability to link to others in the System. Because of this, they do not require professional installation or permanent wiring can easily be unplugged and relocated. The simplicity of KSU -less System makes it the least costly small business phone systems option, at around $ 100 to $ 250 each phone.

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