How Much Does an Answering Service Cost? A Comprehensive Guide for Small Businesses

not missing any opportunities. However, hiring a full-time in-house receptionist can be expensive and isn’t always the most efficient solution, especially if your call volume fluctuates. 

That’s where an answering service comes in – a cost-effective alternative that provides professional call handling, message taking, and appointment setting without the overhead of extra staff.

Answering services give small businesses like yours the ability to manage calls during and after hours so every caller is greeted by a friendly virtual receptionist. Whether answering customer questions, scheduling appointments, or even bilingual support, these services can boost customer experience and decrease costs.

Studies show that nearly 67% of customers end a call if they cannot reach a customer service representative due to wrong numbers or lack of quality service reasons.

In this article, we’ll review the factors that affect answering service pricing and different pricing models and guide you on how to choose the best answering service for your budget.

What is an Answering Service?

An answering service is a professional service that answers incoming calls on behalf of a business. Designed to ensure every caller is greeted with a friendly and knowledgeable response, answering services can handle a wide range of tasks, from taking messages and scheduling appointments to basic customer support and answering questions. 

For small businesses, these services are a lifeline to maintaining high customer satisfaction without needing a full-time in-house receptionist.

Types of Answering Services

1. Live Answering Services
   Live answering services provide real-time human interaction for your callers. A trained receptionist answers calls, answers questions, takes messages, and even routes calls to the right person or department. This personal touch is especially important for businesses that value customer service and want to make every caller feel special.
   
2. Automated Answering Services
   Automated answering services use pre-recorded messages and interactive voice response (IVR) systems to guide callers through options. While cost-effective, automated services lack the personal touch of a live receptionist, so they are better suited for simple tasks like providing business hours or routing calls based on caller input.
   
3. Virtual Receptionist Services
   Virtual receptionist services combine the benefits of live answering with the flexibility of working from home. These services offer live receptionists who work off-site but provide the same professionalism and efficiency as an in-house receptionist. Virtual receptionists like PATLive can handle call routing, message taking, appointment scheduling, and even bilingual support, so they are a great option for any size business.

Factors Influencing the Cost of an Answering Service

When calculating the cost of an answering service, several key factors must be considered. These can vary based on your business needs, the volume of calls you get, and the level of service you need. 

Here’s a breakdown of the main factors that impact answering service costs.

Service Type

One of the biggest factors that affects the cost of an answering service is the type of service you choose. 

Live answering services where real people answer your calls are more expensive than automated systems. The human element of live answering provides a more personal and professional touch, reflected in the higher price. 

Automated systems are a cost-effective solution for businesses that need basic call handling and routing.

Call Volume

The volume of calls your business gets is another big factor in determining the cost of an answering service. 

Many answering service providers charge by the number of calls handled or minutes used. Higher call volumes mean higher costs, but some providers offer flat-rate pricing to help you budget better. 

Choose a pricing plan that matches your business’s call traffic to avoid surprise fees.

Features and Customization

Beyond basic call answering, the features and customization options you choose can also affect the cost of an answering service. Some companies charge extra for additional services like appointment scheduling, order processing, lead collection, and message delivery via text or email, but PATLive doesn’t. Unlike some of our competitors, every advertised package with PATLive includes each of these services.

Hours of Operation

The hours you need answering service coverage also affect pricing. 

Standard business hours coverage is less expensive than 24/7. 

If your business needs after-hours or emergency support to handle calls or emergencies, you’ll pay a premium for that extended service.

Bilingual Services

For businesses with a diverse customer base, bilingual or multilingual services can be a key offering. Supporting multiple languages ensures all customers can communicate with your business. 

However, this added service comes at an extra cost because of the specialized skills required to communicate seamlessly across different languages.

Typical Pricing Models

Understanding the pricing models for answering services will help you choose the right one for your business. Each model has pros and cons, depending on your call volume and your operation’s needs. 

Here are the most common pricing structures you’ll see:

• Per Minute: Per minute pricing charges you for the total time spent on your calls, i.e., the call duration. That’s from greeting the caller to taking a message or transferring the call. Businesses with longer or more complicated calls may find this model a little more expensive, but it gives you exact control over costs. The average cost for per-minute rates is $0.75 to $1.50 per minute, depending on the service and level of service.
  
• Per Call: Per call pricing charges you for each call answered, no matter the call length. This is a good option for businesses with a high volume of shorter calls, like inquiries or appointment confirmations. It’s easy to budget as you pay a flat fee for each call which can vary from $0.75 to $1.20 per call.
  
• Flat Rate: With a flat rate pricing model, you pay a flat fee for a set number of calls or minutes per month. This is good for businesses that want to avoid variable costs and have a fixed monthly expense. Flat rate plans include basic services, and you can add extra features at an additional cost. Prices for flat-rate plans start at $50 to $150 per month, depending on the package and services.
  
• Monthly Plans: These plans come in packages and each tier has a different combination of services and a set number of minutes or calls. For example, a basic plan might be 100 minutes for $50 per month, and a premium plan 1,000 minutes for $300 per month. Monthly plans are often customizable, so you can choose the services and features that fit your business’s needs.

Cost Comparison: Answering Service vs. In-House Receptionist

When deciding how to handle your business’s incoming phone calls, you need to weigh the cost of a call answering service against hiring a full-time in-house receptionist. 

Here are some factors to consider before you make that decision: 

• Salary and Benefits: Hiring a full-time receptionist is more than just their salary. You also have to factor in benefits like health insurance, paid time off, retirement contributions, and more. A receptionist’s salary in the U.S. can range from $30,000 to $40,000 per year. Add in benefits and other perks and the total annual cost could be $45,000 to $60,000. That’s a big expense for small businesses with limited budgets.
  
• Overhead Costs: A full-time receptionist needs a workspace and the necessary office equipment like a desk, computer, phone, and other supplies. These overhead costs can add up quickly, especially if you need to maintain or upgrade them. An answering service eliminates the need for extra office space and equipment as the service is provided remotely.
  
• Flexibility and Availability: A full-time receptionist works standard business hours, but a phone answering service can provide 24/7 coverage so your calls are answered even outside of business hours. Flexibility also extends to scalability – an answering service can adjust to changes in call volume without needing to hire more staff, making them a more flexible option as your business grows.
  
• Missed Opportunities: A receptionist is only available 40 hours per week (if you are lucky!), not including vacations, sick days, breaks, or even just being on the other line, etc. 18% of weekday calls and 41% of weekend calls go unanswered…and unanswered calls means lost revenue, as most potential customers won’t leave a voicemail and will simply call the next company on their list.
  
• Total Savings: When you add up the costs of a full-time receptionist versus that of an answering service, the savings become obvious. Telephone answering services offer customizable pricing plans, so you only pay for what you need and not the overhead of an in-house employee. For many small businesses, this means big savings so you can allocate your resources more wisely and still provide great customer service for inbound calls. 

Benefits of Using an Answering Service

Choosing an answering service company for your business can do so much more than save you money. From professionalism to customer satisfaction, here’s how an answering service can help your business:

• Professionalism: First impressions count, and with a professional answering service, your business can present a professional image 24/7. Trained receptionists handle each call with care so your customers get courteous and knowledgeable service. That looks good for your business and builds trust with your clients from the very first call.
  
• Customer Satisfaction: In today’s busy world, customers expect quick responses. An answering service makes sure every call is answered, even during peak hours or after hours, so you don’t miss out on opportunities.
  
• Scalability: An answering service lets you scale up or down as needed. Whether you’re experiencing a seasonal surge in calls or expanding your operations, an answering service can adapt to your needs without the hassle of hiring more staff.
  
• Bilingual Support: In a global market, offering bilingual support can be a differentiator for your business. Many answering services offer multilingual capabilities so you can serve a diverse customer base. By communicating with clients in their language, you improve understanding and satisfaction, which can lead to better relationships and a broader market.

Choosing the Right Answering Service for Your Business

Have you decided to outsource, or are you considering call center services?

Choosing the right answering service is key to your business running smoothly and successfully. Here’s how to approach it.

1. The first step in choosing an answering service is to define your business needs. How many calls does your business get daily? What services do you need (appointment scheduling or bilingual support)? What hours do you need coverage? Knowing these specifics will help you narrow down your choices and find a service that fits your business goals.
   
2. Not all answering services are created equal, so do your research. Look for providers with a good reputation, good customer reviews, and services that match your needs. Consider the provider’s experience in your industry, the quality of receptionists, the setup fees, and the flexibility of their answering service plans. Also, watch out for any additional fees or hidden answering service charges that will blow your budget.
   
3. Before you commit to an answering service, try out their free trials or demo periods. This way, you can experience their service firsthand, evaluate the customer interactions, and make sure their features meet your business needs. A trial period is also a chance to test their customer support and responsiveness, which is key to a successful partnership.

Affordability and Flexibility Begins with PATLive

An answering service offers big cost savings by eliminating the need for a full-time in-house receptionist and overhead costs. Plus, the flexibility to scale services to your business needs means you only pay for what you use, making it a cost-effective solution for small businesses.

Choosing PATLive means you’re not just saving money but investing in better service. With over 30 years of experience, PATLive provides 24/7 professional support with features like bilingual support, appointment scheduling, web chat services, and customizable call flows. This level of service means your business is always represented well, no matter when or where your customers call.

PATLive doesn’t charge setup fees, nor do we require a contract like many of our competitors do. Upgrade or downgrade your plan anytime, meaning no gotchas or unexpected fees in your billing!

Try out the affordability and flexibility of PATLive’s answering service with a 14-day free trial. See how our trained receptionists can improve your business communication and customer satisfaction and help you grow without adding extra cost.

Start your free trial today and discover why PATLive is the trusted choice for small businesses.