Buyer beware: Not all telecommunications pricing is created equally. Many providers charge between 20 to 40 percent more on top of their listed price in fees and other hidden charges.
Let’s assume you are shopping for business communications services from various providers; traditional telecommunications companies, VoIP, and Unified Communications as a Service (UCaaS) providers. Your company probably has a budget. Even if there isn’t a specific budget, pricing is obviously one big factor to consider. It may not be the only factor, but it definitely plays a role in the decision-making process. Unfortunately, hidden fees can throw off your budget quickly.
You visit websites to compare pricing options between various providers. It seems pretty obvious, right? Again, the price may not be the only factor, but it’s definitely a factor especially when you’re looking at similar services that more or less do that same thing. The problem is that comparing website-listed pricing is not an accurate apples-to-apples comparison. Why? The reason is that almost all providers charge hidden fees and surcharges to their listed price. Here is how most providers position the pricing for their service:
$21.99 per month*
*Plus taxes, surcharges, and fees
These fees typically run between 20-40% but can be even higher which completely changes the bottom line price. For example, a service that’s listed at $21.99 per month with fees that total 30% is really $28.59 per month; an increase of $6.60 over the listed price. Most buyers and consumers alike know that the price of almost any good or service will likely have some sort of additional charge, but fees and other surcharges of +20-40% amount to a material difference when trying to compare apples-to-apples. Although $6.60 more per month per user might not seem like much, multiply that times 12 months and times all of the users within your company and it really starts to add up. Paying just $6.60 more per month per user due to hidden fees can equate to paying several thousand dollars more per year in total.
Why does this happen? Business is competitive and many providers feel as though they can gain an advantage by listing a low price. Telecom providers will price their services without hidden fees, surcharges and other charges to appear to be the least expensive option. This enables them to be perceived as the low price leader relative to telecom providers. The below chart helps pull back the curtain and expose some of the hidden fees you might see with your telecommunications service:
Hidden Fees & Surcharges
At Level365, we like simple, straightforward, predictable pricing without hidden fees so the price we list is the price you will see on your monthly statement. For example, our UC Premium seat license (listed in the chart above) is the price we charge. Please note that some taxes (but no hidden fees) are additional for some of our add-on services such as DIDs, Conference Bridges, Toll-Free Numbers, etc.
Our service includes features for seamless integration among devices; Desk Phones, Computers, and Mobile devices to improve your team’s productivity. We make changing easy by handling the transition of your service, porting your phone numbers, in addition to, providing ongoing upgrades and maintenance. Click here to see what features are included with our service.
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About Level365: Level365 offers a complete Unified Communications as a Service (UCaaS) solution with enterprise voice that is customizable and scalable for your business. Our service seamlessly integrates communication among desk phones, computers, and mobile devices to support remote teams and provide flexibility for on-campus staff. The UC platform extends beyond voice communications with Unified Messaging, Analytics, Presence, Chat/SMS, Cloud Faxing, Business System Integration and more.
