Answering Service Cost Savings: Does It Make Sense?

As your business grows, managing customer calls efficiently can be a real challenge. Do you hire more in-house staff, or would an answering service be a smarter choice? Ever wondered how much you could save by choosing an answering service over bringing on a new employee? Let’s break down the answering service costs and highlight the key benefits of using an answering service so you can make a more informed, cost-effective decision for your business.

Breaking Down the Costs of Hiring In-House

When hiring an employee, it’s easy to focus on the salary alone, but that’s only the beginning. Beyond the base pay, there are additional costs for benefits like healthcare, vacation time, and retirement plans. Hiring an employee is like buying a new house—you’re not just paying for the property but all the maintenance and utilities, too. You’ll need to consider training costs, which include the time and money spent on onboarding and professional development. Each new hire also requires office space, a computer, utilities, and other essentials. Compared with the cost of answering services, hiring a full-time employee can be quite pricey.

infographic of the real cost of hiring an employee

Answering Service Cost vs. Employee Expenses

When comparing the cost of an answering service to hiring an employee, the savings quickly become clear. Answering service costs are typically subscription-based, so you pay only for the package you choose without worrying about equipment, training, or benefits. Plus, these services are highly scalable, letting you adjust based on your call volume or business requirements.

To put it in perspective, an employee might cost around $40,000 per year, plus benefits and other overhead expenses. An answering service, on the other hand, typically ranges from $200 to $500 per month, depending on call volume and features. Imagine swapping a monthly mortgage for a low rental payment — both provide the same support but at vastly different price points, saving you significantly over time.

answering service cost comparison to in-house

Advantages of Choosing an Answering Service

When you make a live answering service price comparison with hiring a full-time employee, the difference is significant. Answering services operate on a subscription-based pricing model, meaning you only pay for the package you select — no hidden fees or unexpected costs. With an answering service, there’s no need to worry about the overhead expenses that come with hiring staff, like equipment, training, or benefits. Plus, answering services are scalable, letting you adjust your plan based on your current business requirements, so you’re never paying for more than you actually use.

To put this into perspective, let’s look at some real numbers. Hiring an employee can cost around $40,000 a year, not including additional expenses like benefits and office space. By contrast, a live answering service ranges from about $200 to $500 per month, depending on call volume and features – making it a fraction of the cost. It’s like swapping a monthly mortgage for a low rental payment; both provide a similar function but at vastly different price points. Over time, these savings really add up, making an answering service an affordable, efficient option for growing businesses.

Advantages of Choosing an Answering Services

Answering Service Price Comparison: What to Look For

When evaluating answering service pricing, a few key factors can help you make the best choice for your business. Start by comparing service packages to see which plan fits your requirements; some may include basic call answering, while others offer advanced options like message forwarding and after-hours support. Look for customization options, too, so you can tailor the service to how you handle calls and ensure it adapts as your business grows. And don’t forget to watch out for hidden fees! Transparent pricing is essential to avoid unexpected charges that could eat into your budget.

When choosing the right service provider, consider both your budget and call volume. Smaller businesses with fewer calls may find that a basic package is perfect, while high-call environments might need a more comprehensive plan. By balancing these needs with flexible, clear pricing, you can find an answering service that meets your requirements without breaking the bank.

Scenarios for choosing an answering service

When Does It Make Sense to Switch to an Answering Service?

For startups and small businesses, switching to an answering service can be a smart way to keep costs low without sacrificing professional customer service. Instead of taking on the high fixed costs of full-time staff, an answering service offers the flexibility of paying only for the calls you need to be handled, making it a cost-effective choice that’s easy on your budget. Plus, during busy times when call volumes spike – like seasonal rushes or temporary events – an answering service allows you to handle the influx without committing to additional full-time hires. This way, you’re not tied down to long-term staffing expenses but still maintain quality service.

Remote or virtual businesses also benefit from an answering service. Without a physical office location, many companies still need a reliable, professional phone presence to stay connected with customers, and an answering service fills this gap seamlessly. Answering service price savings is undeniable, and it’s a great way to create a polished image and provide excellent customer support, regardless of where your team is based.

Could this be the solution your business has been looking for?

Are You Ready to Save With Phone Answering?

Answering services offer a great way to cut costs by eliminating overhead, providing scalable solutions, and delivering professional support – all at a fraction of the cost of in-house staff. Take a moment to look at your current staffing expenses and see if switching to an answering service could be the right move.

Ready to save on business costs and enhance your customer service? Sign up for a free trial of our live answering service options today!