SIPTRUNK BLOG

Why SIP Trunk Rates Fluctuate

sipfluxSIP trunk rates not only vary from provider to provider, but change over time as the cost of providing the services fluctuates. So how do you explain to your customers the varying SIP trunk rates they’ll likely encounter in their search for the perfect provider?

Setup fees affect SIP trunk rates

It’s bound to happen: a potential customer you’ve almost got on the hook to sign up for your SIP trunking services finds a provider who charges no setup fees. They’re instantly attracted to such a deal. Little does your customer know, however, that no setup fees likely mean higher monthly rates so the provider can make up any revenue lost in set-up time and equipment. Lower setup fees are also probably made up in higher rates. Encourage the customer to compare big-picture factors before he is lured in by no or low-setup fees.

Taxes affect SIP trunk rates

Taxes. Everyone’s least favorite word. But let’s be real, they’re part of life, and they definitely affect SIP trunk rates. One city or county may tax telecom providers differently than the next city or county over, and taxes on telecom services can vary by state as well. Providers in one locale may be forced into providing their services at a higher rate than another simply because of taxes.

Call volume affects SIP trunk rates

Your customer’s call volume will determine how many call paths they will need which, in turn, will affect their pricing. A customer may complain that their rates are high compared to their buddy who owns a business down the road, but remind them that every customer’s call volume is different, so their rates will likely be different.

Providers do have the option of providing metered plans as well as unlimited plans. Typically a high call volume customer will need an unlimited plan to keep costs lower. Unlimited plans cost more up-front than a metered plan, but the customer can receive and place as many calls as necessary. Low call volume customers will likely benefit from a metered plan which allows them to pay for only the number of calls they need.

Add-ons affect SIP trunk rates

Providers often allow customers to choose from a variety of add-ons that will increase their monthly SIP trunk rates. Options, like keeping the same phone number when switching to SIP, adding toll-free service, or establishing a new DID service all contribute to rate increases. Even if the provider offers a bundled package with a variety of add-ons, all those extras will increase monthly fees.

Conclusion

A variety of factors affects the rate of SIP trunks. Educate your customers to be aware of providers who offer discounts or “free setup.” Remind them that nothing in life is free, and they will end up paying in the long run for “free” service.