Pay as you go versus contract
When times are tough small businesses may consider that moving from contract to pay as you go is the better, and cheaper, option. But is it really?
There are pros and cons on both sides and what might be cheaper for one business might not for another.
Pay as you go
The main advantage of pay as you go is the freedom it gives you. You are not tied to a contract and so can change handsets and move networks whenever you want depending upon what is happening with your business. However this freedom comes at a price.Generally speaking the cost of your calls, texts and data per minute is going to be a lot higher than under contract.
For instance if you took out a contract with a new handset (value £50) with 300 inclusive minutes over 12 months at £20 per month, the actual charge of each minute works out at 0.5p (taking into account the handset cost). This of course assumes that you use around 300 minutes every month.
On pay as you go you are likely to be paying over 10p (20 times more) per minute for calls. Plus there are the added extras such as data (internet and email) which are extremely expensive on pay as you go but can be included cheaply under a contract.
Contract
The main drawback of a contract is the length of time you are tied in. Contracts are invariably 18 or 24 months long to enable the networks to recoup the cost of the free handset you are provided with.However, if you are on the correct tariff for your usage the cost of calls is going to be considerably cheaper, as demonstrated by the previous example.
This is the most important point - you have to find a tariff that exactly fits your usage in order to derive the most benefit. If you are paying for calls and texts you are not using then the per minute cost of the minutes you do use effectively increases.
We have a range of business mobile tariffs to suit all types of usage. Each comes with a variety of extras allowing us to match up your requirements with the very best tariff.
Get in touch by phone or email for a free quote.
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