6 Helpful Tips to Determine Budget for an Answering Service

In this ever-changing, dynamic corporate business world, your business may not survive without a suitable answering service.

As your business grows, you won’t have enough time to answer phone calls. Thus, the need for this service becomes increasingly important.

Oftentimes, the quality of a service you get is determined by the amount you pay for it. Hence, it is important to have a budget plan for this service.

If you still find it difficult to create a budget for an answering service, here six proven tips that can help you:

1. What is your call volume?

The higher your call volume, the higher the amount you will pay a phone answering service.

Each business has different call volume rates. It can be caused by the delivery of poor services or the execution of a very effective marketing plan. If the increase in your call volume is the result of poor service delivery, then, your best option is to improve your service delivery in order to prevent loss.

If you’re unsure of your expected usage, it is best to choose a service that a flat fee. A disadvantage of choosing this option is that if you suddenly have a spike in calls volume, some of these answering services may provide underwhelming service since they usually rely on low volume of calls to be profitable.

2. Why do you need to hire a professional phone answering service?

Businesses hire a phone answering service for different reasons. They can be hired to answer questions, dispatch services, take orders or just for customer service.

Answering services can also be customized for different industries.

Hence, depending on your needs, you must work with answering service to create a personalized package for you.

3. Compare various answering services

Before you select an answering service firm for your company, make sure you check out reviews of various answering service firms. Review their rates and their experience as it relates to your needs. Any answering service you choose must:

  • Have the highest level of phone equipment
  • Be professional in answering customer requests

4. Make the right comparisons

Compare the cost of hiring a receptionist to the cost of using an answering service. Apart from salary costs, hiring a receptionist might also require additional tools.

Don’t forget to consider all factors before you decide.

5. Estimate the value of a call to you

For every call, you need to determine:

  • The average value of a customer
  • Their retention rates
  • Professionalism in answering calls.

6. Does your business need an answering service 24/7?

There are certain businesses that do not require an immediate response. However, for some businesses such as medical practitioners and locksmiths, their phone calls need to be answered at any time of the day.

Hence, you need a good understanding of your audience to know whether you need an answering service in the first place.


You can enhance your reputation by hiring a proven answering service firm. In contrast, if you hire the wrong answering service firm, it will cost you your business, sanity and social image. Since the first interaction a potential customer will have with your company is very important, you need to choose the right answering service for your business.

Hence, make sure the answering service manifests your company’s commitment to customer service, culture, experience and values.

Other factors you need to consider before you choose an answering service firm are call capacity volume, reliability, availability and culture.

You just learned six proven tips for determining the budget for an answering service.

And now there’s just one thing left for you to do: act.

To get started, I encourage you to start by checking out reviews of the various answering service firms.



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