You know that you're ready to update your hotel's phone system, but should you lease or buy the equipment? As Voice over Internet Protocol (VoIP) continues to replace landlines in businesses across the globe, countless other hoteliers are faced with this same question. Although there are definitely both benefits and drawbacks to each solution, making the decision to actually purchase and own your communication's equipment offers the cost efficiency and reliability that leasing may not be able to provide. By taking a closer look at the advantages of buying a hotel phone system, you can make the right decision for your facility's specific needs. And, here is the flip side - Advantages of Leasing Your Phone System.
Top Five Benefits of Buying a Hotel Phone System
1. It's easier than leasing
When you think about it, buying phone equipment for your hotel is a lot less of a hassle than choosing to lease it. All you have to do is find a system that meets your requirements, and actually purchase it. Leasing a phone system, on the other hand, requires a lot more time and work. In order to be approved for a lease agreement, you will be required to fill out a lot of paperwork and provide your phone provider with your detailed, most up-to-date financial information. Negotiating your contract can also be complicated, and without proper negotiations, you could end up in a longer lease than you'd like, or paying more than you should.
2. You'll pay less in the long run
Generally speaking, a phone system lease will nearly always end up being more expensive than buying equipment. The phone system that you choose may only be worth $4,000, but if you lease the equipment at $160 a month for a three year period, you'll end up paying $5,760 for it. When you buy, you know exactly how much your costs will be, and have the confidence that you are only paying for what the equipment is actually valued at.
3. The equipment is deductible
In addition to saving money on the actual cost of the equipment, you can enjoy tax deductions. Section 179 of the IRS code permits businesses to deduct the entire cost of any newly purchased assets - including phone equipment - in the first year. Although it's true that many leases will allow you to deduct the monthly payment, the deduction for the equipment in full is much larger.
4. You call the shots
When leasing equipment, you may be required to follow a specific maintenance plan, in accordance with your contract with the leasing company. Unfortunately, this can quickly become expensive. When you own your system, though, you have the ability to call the shots and create your own maintenance schedule, based on your budget.
5. You and your staff can become familiar and confident with your phones
When leasing a system, you may be tempted to constantly try out new equipment, trading the old stuff in. The problem is that this can create confusion with your staff, and make it more difficult for you to attend to your guest's needs. Instead of creating learning curves, create consistency and user confidence by buying and maintaining a phone system for the long haul. Owning a system for several years will allow you and your staff to become experts on the equipment and impress your customers.
Ultimately, the decision to either buy or lease your hotel's new VoIP phone system will come down to your specific requirements. For those with the capital to invest in new equipment, or for those who prefer consistency, buying is definitely the way to go. Which solution is right for your hotel?