How to Charge for an Answering Service

by Josh Victor; Updated September 26, 2017
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Answering services are important for customer service-focused businesses. They stand as an important connection between the customer and the business. In addition, they field all questions and complaints. Figuring out what to charge for an answering service can be calculated using a few metrics and a simple procedure.

Step 1

Consider the resources that you are using to operate your call service. Include the labor cost for each employee, yourself, an assistant and sales people. Also, calculate the fixed costs, such as networking equipment, phones and office space.

Step 2

Reach out to clientele to gage their expectations for your answering service. Ask them a series of questions to verify their needs. Are they large corporations to which you can offer volume discounts? Or are they smaller firms that require only one or two operators? Will they have thousands of calls per month, or hundreds? Will the nature of those calls be -- technical or non-technical?

Step 3

Use industry standards to provide competitive pricing. Find out what others are charging and try to match or beat their rates. Approach their current clients to see if you can win business the next time a contract is up for renewal.

Step 4

Pricing is done per seat per month. Pricing can be increased for domestic answering services because they and are considered higher quality. Internationally outsourced services are priced less but also have lower wages. Based on the industry, pricing can be several hundred to several thousand dollars per month per person.

Step 5

Upsell on the quality of your workers based on their technical ability, communication skills or ability to generate additional revenue for your company. Depending on the client's needs and policies, this may be an additional opportunity to increase revenue for your own firm by taking a cut of the profits your workers create.

References

About the Author

Josh Victor started writing in 2006 as an author for various blogs across the internet. His areas of expertise include finance, business, marketing and technology. He has a Bachelor of Arts in economics from the University of Illinois at Chicago.

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