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Inclusive Minutes vs Pay as you Go

Inclusive Minutes vs Pay as you Go

Wednesday 17th October 2018

In a world where most mobile phone users now have a package with minutes included in their monthly bills it's easy to understand why these packages have become more attractive to businesses over the years.

We are often asked whether we offer minutes packages as part of our business telephony solution. The simple answer is yes, we do offer packages, however, we advise customers to consider very carefully whether these packages are in fact the best solution for their business.

On further investigation, inclusive minutes packages usually offer a select number of minutes at a set price, this price is lower than the standard call rate. This offers the customer a monthly saving and a regular monthly fee for any calls that are included within the package.

Listed below are the advantages and disadvantages -

Advantages

  • If you know you only make calls up to your packaged minutes limit, then your monthly telephone bills will be consistent.

Disadvantages

  • Any minutes used outside of the package can sometimes be charged at a higher rate.
  • Unused minutes cannot be carried over.
  • You might be limited to the amount of inbound/outbound calls you can receive/make at one time.
  • Some call packages are subject to longer contract terms.
  • Actual cost of calls on a pay as you go basis can often be considerably less than an inclusive package.


In comparison, a pay as you go package will provide you with the rate for each call e.g. landline or mobile. You are billed for only the calls you make during the month at these rates.

Listed below are the advantages and disadvantages -

Advantages

  • You only pay for what you use.
  • There are fixed call charges.
  • You are billed by the second.
  • There are short term contracts available.

Disadvantages

  • Your telephone bill can fluctuate from month to month.


For example

A company is offering a 5000 UK Landline minutes package for £45.00 (ex VAT) per month.

Their standard call charges for UK Landline minutes are 0.01p per minute.

This provides you with a 10% discount saving you £5.00 (ex VAT) per month.

Breaking this down, you would need to use at least 4500 of these minutes each month to break even on the standard call charge cost.

If you go over 4500 minutes each month, that's great, you've made a saving!

If you are under 4500 minutes each month you will actually be paying more than you would on a pay as you go plan.

Let's say you use 3000 minutes one month, on the standard plan you would be charged £30.00 (ex VAT) but on the minutes package you are paying £45.00 (ex VAT) per month. Meaning you've actually cost yourself an extra £15.00 (ex VAT) per month.


At RPS Technology Solutions we pride ourselves on making sure you have the most cost-effective telephony solution that enhances your business. We find minute inclusive packages work for some customers and don't for others. Its personal to each business as is the setup and delivery each customer is looking to achieve.

We provide a free cost analysis for customers to look at existing telephone bills, it gives us the chance to analyse the data and show you each option that is available, so you can make the most informed and effective decision for your business.