Why a Tiered Pricing Plan Works Best for Small Businesses & Startups

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Starting a new business and running that smoothly isn’t easy. Small businesses and startups face many challenges because of their budget limitations.

A recent survey by Intuit shows that around 64% of small businesses start with less than $10,000 and more than 75% of them rely on their personal funds to get started.

Every penny you invest in your business counts. So, any wrong decision you take regarding expenditure can put your business growth at risk.

When it comes to the business phone system, unlimited calling plans might seem lucrative. Also, companies offer many add-on features along with long-term VoIP plans. But, does your startup actually need those features?

On the other hand, a Pay-As-You-Go or Tiered Pricing plan allows you to pay only for what you use and nothing extra. Let’s see why and how a tiered pricing plan can be the best fit for your current needs.

Not Locked Up for Entire Year

In case of long-term plans, you have to pay the whole amount upfront and get yourself locked for the entire year. Also, many cloud phone services enforce you to use their VoIP phones along with the plan. This essentially means more cost to you.

Whereas, you can use any SIP-enabled phone with a pay as you go VoIP plan. Also, these plans are billed on monthly basis. And, you only get charged for what you have used in that particular month.

Optimize or Scale Your Plan

More than 80% of unlimited plans get unused. And, as a small business owner, you surely want to cut down on your expenses and not overpay. So, paying for an unlimited voice over IP plan doesn’t make sense.

Whereas, a tiered pricing plan allows you to keep an eye on how many minutes are being consumed on monthly basis. If you know the actual consumption, you can easily scale up or down the plan as per your business needs.

Add/ Remove Extensions Whenever Needed

Many businesses start with just a couple of people. And, at that time you may not know how many phone numbers or extensions you will need in future. A big facility of a tiered pricing or pay as you go plan is, you can add or remove the numbers or extensions as and when needed.

It gives you the freedom and flexibility to go as per your need. This is a great choice for small businesses who are expecting growth in the coming days.

Cancel Anytime

Are you not liking the cloud phone services of your current company? Or, did your business not go the way you expected it to? The best feature of a pay as you go VoIP phone service is, you can cancel the services anytime you want to. There is no termination fee for opting out from a long-term contract.

Wrapping Up

Large enterprises want many add-ons to distinguish their services and they don’t have any budget constraints. So, a long-term unlimited VoIP plan might be good for them.

However, small businesses and startups need something which is cost effective and efficient at the same time. A pay as you go or tiered pricing plan can only give them the flexibility to sustain in the business and compete with the big players in the market.

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