SIPTRUNK BLOG

Why Does SIP Trunking Pricing Vary So Much?

SIP Pricing?Customers can be overwhelmed by the variety of models and the differences in price from one service provider to another. Explaining in layman’s terms can prove difficult. How do you explain all the reasons behind the pricing differences–the intricacies of SIP trunking–without sounding like you just landed from some far-away galaxy? Here are a few ways we recommend to get you started:

Sip price differences caused by varying rate and plan structure

Each provider has a preferred way of offering their services to customers. Some offer metered plans, charging customers by the minute; others offer “channelized” plans; plans at a set rate, often known as “unlimited” plans, which tend to be more expensive. Guide your customers through deciding which type of plan works for them instead of immediately choosing the cheapest option. For some, paying by the minute will work well, but channelized plans work better for others, and allow them the flexibility their business may require.

Different SIP service features cause price variations

Each provider also has a distinct set of service features. Some of those features may be similar from provider to provider, but most find ways to make themselves unique. For instance, some offer a full-package deal–the customer pays one rate and receives a suite of features like a real-time dashboard, call data records and 24/7 support. Other providers may charge for each feature individually, or offer tiered plans so customers can stack on features a la carte. Again, help your customers determine if a certain package meets their business’ needs instead of simply jumping to what initially sounds like the best deal.

A SIP provider’s approach to customer experience factors into price variations

A provider may offer a high-touch customer experience, attempting to provide more individual contact with each customer, as opposed to a low-touch experience where a customer’s purchase decision is based only on the product or service offered and not the individual contacts with the provider. A high-touch provider may increase the service price simply because it requires more man-hours, but the overall customer experience will likely be better. A low-touch experience may be priced lower, but the customer may encounter more frustrations in the process. Customers must evaluate which type of business will provide them the best service for the cost.

Tech support and service quality affects SIP pricing

Some providers offer lower cost services by offering less tech support. For customers with built-in IT departments that can grasp SIP trunking, even if it isn’t their forte, such a provider is probably a good option. However, for small businesses with few-to-no IT personnel, tech support and service quality is worth the extra expense it can add.

Conclusion

SIP trunking pricing variations are caused by a number of factors that potential customers may not immediately see. To help them overcome their sticker shock, show them why prices vary and how paying a bit more may be worth the expense in the long run.