Finding a reliable and affordable phone answering service is a common challenge for many businesses.
In this post, you'll get a full breakdown of the pricing models and cost factors to consider when budgeting for a phone answering service.
We'll compare per minute versus monthly flat fees, look at extra features that impact cost, and outline tips to find an answering service that fits within your budget.
Introduction to Phone Answering Services
A phone answering service provides a valuable solution for businesses looking to efficiently manage inbound calls. By outsourcing call handling tasks to a team of remote receptionists, companies can ensure calls are fielded 24/7 without the overhead costs of hiring additional full-time staff.
What is a Phone Answering Service?
A phone answering service allows businesses to route calls to a team of remote workers who can professionally screen calls, take messages, answer basic questions, book appointments, and more. Key features include:
- Professionally trained remote staff to handle calls
- Customized call flows and scripts
- Options for toll-free numbers to field calls
- Voicemail and message delivery
- Appointment booking and lead capture
- Call analytics and performance reports
Services are available on flexible plans, from pay-per-minute to unlimited monthly packages. This allows businesses to scale support according to seasonal demands.
Key Benefits of Using an Answering Service
The top reasons companies utilize answering services include:
- Increased Sales: More inbound calls answered means more leads captured. Services capture key details so no opportunity is missed.
- Improved Customer Service: With quick, professional responses, customer satisfaction goes up. Remote staff can handle overflow call volumes.
- Lower Costs: No need to hire multiple additional full-time staff. Pay only for the exact services used.
- Flexibility: Scale call support up or down as needed. Add toll-free numbers and staff to meet seasonal demands.
In today's competitive environment, businesses must optimize customer service while controlling costs. A reliable phone answering service offers an affordable way to achieve both.
What is the average cost of an answering service?
The average cost of a phone answering service ranges from $50 to $149 per month. However, pricing models can vary significantly depending on factors like:
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Per-minute pricing: Additional fees are charged per minute of talk time, usually $0.93 to $3.09 per minute. This allows for more flexibility based on your call volume.
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Per-call pricing: Some services charge a flat fee per call answered instead of per minute. This simplifies predicting costs.
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Unlimited plans: Some providers offer unlimited inbound calls for a flat monthly fee, without per-minute charges. This works well for high call volumes.
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Number of users: Costs may increase based on the number of users (agents) needing access. Some services charge per user.
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Features: Prices are higher for services offering more advanced features like appointment scheduling, lead qualification, bilingual support, etc. Basic answering incurs lower fees.
So in summary, $50-$149 per month is typical for a basic inbound call answering service, not including additional per-minute or per-call charges. Costs scale up from there based on factors like call volume, number of users, and platform capabilities. Comparing pricing models is important to find the best value.
Is an answering service worth it?
Hiring an answering service can provide significant benefits for a small business. Here are some of the key advantages:
More Consistent Customer Experience
An answering service helps ensure every caller receives prompt, friendly, and professional assistance. This leads to higher customer satisfaction and loyalty over self-service options like voicemail. Customers appreciate reaching a live person, especially after hours or during busy times when staff may be unavailable.
Improved Brand Image
Quality customer service boosts brand image. Customers form impressions of a business based on how calls are handled. A professional answering service strengthens brand reputation with every interaction by providing exceptional assistance.
Expanded Availability
Answering services offer live support 24/7. This means customers can get assistance anytime, including nights, weekends and holidays when staff are likely unavailable. Expanded availability via an answering service ensures no inquiries get missed.
The bottom line is that an answering service enhances customer experience through prompt, personalized service unavailable through alternatives like voicemail and chatbots. The benefits of higher customer satisfaction, brand reputation, and availability often make the investment worthwhile for small businesses. Evaluating factors like call volume and business hours can clarify if an answering service makes sense financially.
Do people still use answering services?
Answering services remain a popular option for many businesses today. Here's why they continue meeting key business needs:
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Cost savings. Rather than hiring full-time staff, answering services allow you to pay only for the exact time you use. This saves tremendously on overhead. You can have a dedicated team ready to handle calls for a fraction of the price.
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Flexibility. Answering service plans scale up or down to match changing business needs. Add or remove features to suit your budget. Only pay for what you use each month.
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Reliability. With answering services, you never worry about staff calling in sick or being unavailable. Get guaranteed 24/7 coverage with automatic call routing and overflow.
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Expertise. Many answering services specialize in specific industries like healthcare, legal, home services, etc. Their experience benefits your customers.
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Scalability. Easily handle surges in call volumes from advertising campaigns, busy seasons, or growth spurts.
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Improved CX. Get more responsive, personalized service for callers. AI answering can sound natural while accessing databases to serve each customer.
So in short - yes, answering services remain an affordable, flexible business tool. The level of sophistication answering AI offers today surpasses a traditional receptionist. Businesses worldwide continue adopting these services to drive efficiency and boost their bottom line.
Is an answering service the same as a call center?
No, an answering service is not the same as a call center. Here are some key differences:
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Scope of services: An answering service focuses more narrowly on receiving and relaying phone calls and messages. A call center handles phone calls but may also provide additional services like email support, sales, appointments, etc.
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Level of automation: Most answering services utilize some automation like IVR menus but rely heavily on human agents to handle calls. Call centers make greater use of automation with interactive voice responses, scripts, routing tools, etc.
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Cost structure: Answering services often charge per message or per minute. Call centers have more complex pricing based on call volumes, agent talk time, features used, etc.
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Customization: Answering services offer flexibility to customize services but call centers allow greater tailoring with detailed scripts, workflows, analytics, and dedicated account management.
So in summary, an answering service offers more basic inbound and outbound call handling while call centers provide multifaceted customer service and sales capabilities but at higher complexity and cost. Answering services meet simpler needs at lower price points.
Understanding the Cost of Phone Answering Services
The cost of a phone answering service can vary significantly depending on the features, level of service, and usage. Here's an overview of common pricing models:
Cost of Phone Answering Service Per Month
Monthly fees for answering services typically range from $100 to $1,000+. Lower-end services cover basic call answering and message taking, while higher-end services provide dedicated account managers, customized scripts, call transfers, lead generation, and more robust reporting/analytics.
The main factors that influence monthly costs are:
- Service Level: Basic vs. Premium support
- Features: Call transfers, lead capture, etc.
- Account Manager: Dedicated or shared
- Call Volume: Number of calls per month
So a basic answering service may charge $150/month for 50 calls while a premium service is $500/month for 500 calls.
Cost of Phone Answering Service Per Hour
Some answering services charge an hourly rate instead of a flat monthly fee. This pricing model can make sense for seasonal businesses or companies with unpredictable call volumes.
Hourly rates often range from $25 to $100 per hour. Costs vary based on representative experience level, customization, and account management approach. Pay per hour is sometimes combined with a monthly minimum to ensure revenue stability.
Flat Rate Answering Service
With flat rate pricing, there's a single monthly fee regardless of usage. This option provides predictable costs for high call volume businesses.
Flat rates typically start around $200/month. Higher-end packages with more services and account manager support can cost $800+/month. This model works best when call volumes are consistent.
After Hours Answering Service Cost
For after hours coverage only, answering services may charge an extra $100+ per month. Some companies offer discounted after hours packages. For example, $150/month for daytime support and $50/month for evenings/weekends.
There are also hourly after hours packages, often ranging from $30 to $75 per hour depending on needs.
Answering Service Pricing Comparison
| Service | Monthly Cost | Key Details |
|---|---|---|
| Basic | $100-$300 | Limited features, shared reps |
| Premium | $300-$1,000+ | Customization, lead gen, analytics |
| Hourly Rate | $25-$100 per hour | Unpredictable call volumes |
| Flat Rate | $200+ per month | Single fee regardless of usage |
| After Hours | $50+ extra per month | Evenings, weekends, holidays |
The "best" option depends on your budget, features needed, call volumes, and more. Comparing pricing models can help identify the most cost-effective solution.
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Pricing Models Explained
Phone answering services offer flexible pricing models to meet the needs of different businesses. Common pricing options include:
Per Minute Rates
- Most popular model where businesses pay per minute of talk time
- Allows businesses to easily adjust costs based on call volumes
- Rates typically range from $0.59 - $1.99 per minute
- Good option for businesses with unpredictable call volumes
Flat Monthly Fee
- Set price for a defined number of talk minutes per month
- Prices based on number of minutes included
- More predictable costs for steady call volumes
- Packages from 150 minutes ($49/month) to unlimited minutes
Customized Pricing
- Many providers offer tailored pricing plans
- Custom packages based on specific requirements
- Define number of users, minutes, features needed
- Ideal for specialized industries like healthcare
- Get quote for pricing unique to your business
There are a range of pricing options to suit different budgets and business needs. Per minute rates offer flexibility for fluctuating call volumes while flat monthly fees provide more consistency. Most providers also offer customized packages to meet specialized requirements. When selecting a provider, understand your call volume patterns and business needs to choose the optimal pricing model.
Estimating Your Monthly Cost
Calculating the cost of a phone answering service requires analyzing a few key factors to project expected monthly expenses. Here are some steps to take:
Calculate Expected Monthly Minutes
- Track current call volumes and average handle times
- Project future call volumes based on business growth
- Multiply call volumes by average handle times to get total monthly talk minutes
Identify Must-Have Features
- Call recording for quality assurance
- Appointment booking to schedule consultations
- Bilingual support to serve multiple languages
Consider Customization Needs
- Integrations with CRMs or other business software
- Custom interactive voice response (IVR) menus
- Specialized scripts for unique business needs
Additional customization can increase cost but may be necessary.
Answering Service Cost Per Month
To calculate total monthly cost:
- Project monthly talk minutes
- Identify base per minute rate
- Add fees for must-have features
- Include any customization fees
The cost of phone answering service per month varies but these steps help estimate accurate pricing. Tracking call metrics also allows adjusting plans to optimize cost over time.
Finding an Affordable Answering Service
Finding a cost-effective answering service that meets your business needs requires some research and comparison shopping. Here are a few strategies to help locate quality services at affordable rates:
Cheap Answering Service Options
There are a few budget-friendly answering service options to consider:
- Virtual receptionists: These provide basic call answering and message taking services at lower per minute rates. They may have fewer features than full-service options.
- International call centers: Outsourcing answering services overseas can provide significant cost savings. However, accent barriers could impact customer experience.
- DIY services: Auto-attendant phone systems have built-in features like voicemail, call routing, and more. However, they lack the human touch.
When evaluating cheap services, ensure they still meet your core requirements around call quality, message accuracy, response times, etc.
Value vs. Cost Assessment
To determine if an answering service provides good overall value:
- Calculate total monthly cost based on call volumes and per minute/call rates
- Compare features, capabilities, and service levels across different providers
- Weigh benefits like increased sales, better customer experience, lower staff costs against fees
- Prioritize must-have features over unnecessary "nice-to-have" add-ons
The cost of phone answering service needs to align with the direct business value it delivers.
Negotiating for Better Rates
You may be able to negotiate custom packages or incentives from answering services:
- Leverage long-term contracts for reduced rates
- Ask about volume discounts for high call volumes
- See if unused monthly minutes can roll over to the next month
- Request free or discounted trials to test out services
- Bundle multiple services like chat, emails, social media support for deal
The goal is getting the best answering service pricing fit for your current business needs and budget. Be open about constraints and ask providers what options could work.
Evaluating tradeoffs between cost, features, and value requires thorough research. But finding an affordable answering service tailored to your business needs is possible with some customer negotiation.
Comparing Service Providers
When selecting a vendor for a phone answering service, it's important to closely evaluate factors like reputation, features, reliability, and costs across different providers. This ensures you choose the service that best fits your business needs and budget.
Reputation and Reviews
Researching a service's online reviews and testimonials can help identify reliable, high-performing answering services. Look for providers with consistently positive feedback about call quality, customizability, ease of use, and responsiveness. Avoid services with concerning complaints around issues like long hold times, unclear pricing, or poor integration.
Capability Alignment
Make sure the service's capabilities align with your unique business requirements. Consider factors like:
- Languages supported - Ensure they offer all languages your customers may use.
- Call routing logic - Can they route calls intelligently based on criteria like location, department, or time of day?
- Appointment scheduling - Do they enable customers to easily book appointments or reservations?
- CRM integrations - Can the service connect to your existing CRM or other business systems?
Cost Comparison
Closely compare costs across different vendors. Key factors to evaluate include:
- Per minute rates - How much does the service charge per minute of talk time?
- Monthly fees - Is there a flat monthly subscription cost?
- Customization charges - Will building custom call flows or integrations incur additional fees?
Setting up detailed cost models for each option can clarify which delivers the most value. Don't just look at upfront costs, but also consider long-term efficiency gains.
Answering Service Cost Per Month
Taking a close look at monthly costs helps determine overall affordability. Below is a comparison of estimated monthly costs across three top providers:
| Provider | Minutes Included | Per Minute Rate | Monthly Fee | Total Monthly Cost |
|---|---|---|---|---|
| Smith Answering | 500 | $0.89 | $0 | $445 |
| Acme Receptionists | 0 | $1.29 | $249 | $249+ |
| Dialzara | Unlimited* | $0 | $99 | $99 |
*Dialzara offers unlimited talk time for a flat monthly rate, delivering exceptional value compared to traditional pay-per-minute models.
When evaluating monthly costs, prioritize services that offer transparency and flexibility to meet your budget over time.
Controlling Ongoing Costs
Managing the ongoing costs of a phone answering service requires diligent monitoring of performance, enforcing clear policies, and optimizing over time.
Monitoring Performance
To control costs, it's important to regularly:
- Listen to a sample of phone calls to evaluate the quality of service and identify any issues
- Review reports on call volume, wait times, duration, transfers, and other metrics to spot inefficiencies
- Ensure service level agreements for performance are being met
By closely tracking key metrics, you can address problems early and make adjustments to improve efficiency.
Enforcing Attendance Policies
Well-defined attendance policies help prevent overstaffing and unnecessary expenses:
- Implement set schedules with defined work hours and break times
- Have clear overtime approval rules
- Set targets for utilization rates to ensure staff time is maximized
Strict adherence to these policies ensures labor costs align with actual call volumes.
Optimizing Over Time
As business conditions evolve, you may need to reassess your phone answering setup:
- Renegotiate contracts yearly as needs change
- Adjust staffing levels and capabilities based on call volume trends
- Add or remove integrated services to match current customer demands
- Explore new technologies that increase efficiency over time
Continually optimizing will help manage costs long-term.
Conclusion and Next Steps
When determining the cost of a phone answering service, there are a few key factors to consider:
Remember Key Cost Drivers
The primary drivers of cost for a phone answering service include:
- Minutes per month used - More minutes used will increase the monthly cost
- Features and capabilities - More advanced features like call recording or multiple language support will raise the price
- Customization level - Highly customized services tailored to your unique needs will be more expensive
So when evaluating services, pay close attention to minutes required, must-have features, and customization needs to accurately estimate costs.
Analyze Call Patterns
Before selecting a plan, analyze your historical call data to understand your inbound call volume patterns. This will allow you to project the number of monthly minutes you are likely to use with the service. Selecting a plan that offers minutes aligned to your projected usage will help optimize cost efficiency.
You can also identify peak calling times to have enough availability during the busiest periods. Off-peak discounts from some providers may also help lower costs.
Compare Provider Options
Research multiple phone answering service providers and compare their pricing models. Look beyond just the baseline per minute rates. Compare all-inclusive monthly plans, features that are important to your business, contract terms, and total cost of ownership.
Also read online reviews and talk to their existing customers before deciding. Choosing the right service provider for your needs and budget is key to getting good value.
