How Do Call Answering Services Generally Charge?

In today's economy, running a company effectively is a top priority for any business owner. Professional standard of operation, on the other hand, must be sustained. Businesses have two choices for getting a specialist to answer the phone: hire a receptionist or hire an answering service. 

According to statistics, using a phone answering service will boost your revenue by 20%. Customers get what they want when they want it, and they want to talk to a live person who can answer their questions or fix their problems. 

The same customer would contact another company if your company is not prepared to answer the call. This is one of the primary reasons that all companies need the services of a telephone answering service.

One of the first things that comes to mind when considering a new service or product is the price. Price equals worth, and everybody wants to get the most out of their money. Although Amazon has spoiled us with the opportunity to search the cost of virtually everything, business facilities like answering phones are more difficult to comprehend.

Calculating the expense of an answering service could be similar to figuring out the cost of a pair of sneakers.

Here, we've broken down the costs for each, and it's clear which is the most cost-effective alternative.

What is the average cost of an answering service? 

Per month, the average small company would need between 250 and 500 minutes of answering service. At 85 cents per minute, that equates to a monthly cost of $200 to 420 dollars.

What is the average cost of hiring a full time receptionist?

Receptionists earned an average of $12.87 per hour in 2014, according to the Bureau of Labor Statistics. That means a good full-time receptionist would save a company $26,760 per year in compensation, not counting payroll taxes and benefits.

An answering service costs $200-$420 a month, and a full-time receptionist costs $2,230 a month.

Pay Per Call or Pay By The Minute?

The estimated cost of an answering service, according to statistics collected by various call answering service providers, is $1.12 a minute, or about $1.75 per phone call. Since call time varies, the average per call price was calculated using the industry average of 1 minute and 35 seconds.

Pay By The Minute

• It's common to bill by the minute. You just pay for what you use in this model. The business bills you on any outbound and inbound call increments under this model.
• Some plans provide a fixed number of minutes per payment period as part of the base cost. Any time an agent participates in some aspect of a call is counted as accrued time.
• Be certain that you understand how the service provider estimates call time. Ask how they quantify it if you don't know or if it isn't easy.
• Inquire with the company on why it rounds up your call time and what the overage costs are, which could differ based on the amount of time allocated. They're frequently inversely proportional to the cost of the plan.

Pay Per Call

• You pay a flat rate for each call taken under this model. So, instead of being charged by the number of minutes an employee spends on the network, you're charged by the number of inbound/outbound calls per billing period.
• Some models have a set number of calls per billing period as a base rate.
• Clarify what constitutes a relationship using this model. 
• Inquire about costs for missed calls, dropped calls, and any other payments associated with this package.
• This model can be treated with caution. To increase earnings, providers aim to keep calls under a minute long. 
• This will damage the brand's customer service experience and save you money.

Monthly Subscription

• Some companies use recurring billing. This is a monthly subscription that requires a fixed amount of minutes per billing period. In addition, you will be charged a flat fee for each extra minute used.
• Flat-rate pricing, on the other hand, is tricky. Depending about how consistent the monthly call rate is, it can be a cost-effective model or a budget breaker.
• In this payment method, providers do not charge overage fees, so when you reach your plan's cap, you'll be bumped to the next plan up. You could have a true pay-per-call or pay-per-minute model if the provider charges overage fees.

Tiered Pricing

• Different types of service are priced differently by providers. The expense increases as the degree increases. The provider who offers the framework normally takes a different approach.
• The number of minutes you use each month is a standard strategy. Tier one could range from 0 to 50 minutes and gets longer as you progress. 
• If you don't know how many minutes you'll need per month, this model can be a good place to start. 
• You should have a clear idea of what tier you ought to be in within a few months. After that, you should work with your answering service provider to determine which tier is best for your business.
• Check your plan to see what extra fees you can expect.

Factors that Lower or Increase the Price of an Answering Service

There are a variety of additional resources that you may need for your business. Although they come at a higher price, the question you might be asking is whether or not this option can bring much value:

• Email messaging that is safe (HIPAA compliant)
• Inbound lead registration and appointment preparation
• Integration of CRM
• Strengthened call documentation 

Of course, a "no strings attached" package will help you save money. You'll save money if what you want is a live person to answer the phone when your prospects or customers call.