Phone Answering Services for Small Business: An Honest Pricing and Options Guide

If you run a small business in Canada, you've faced this problem: you're doing the actual work your business exists to do, and the phone rings. You can't answer it. You tell yourself you'll call them back. Sometimes you do. Sometimes you don't. Either way, you know you're leaving money on the table. This guide breaks down every option available to you — with honest pricing ranges and a clear look at what each one actually delivers.

The Small Business Phone Problem

Here's the reality that nobody talks about when you start a business: you become the receptionist. You're the dentist and the person answering the phone. You're the plumber and the person scheduling callbacks. You're the lawyer and the person fielding intake calls between client meetings.

This isn't a failure of planning — it's the structural reality of running a small business. You can't be in two places at once. And when you're with a customer, the phone loses.

The “I'll call them back” trap is one of the most expensive habits in small business. It feels productive — you fully intend to return the call. But research consistently shows that the longer you wait to respond, the less likely that caller is to become a customer. Many callers who reach voicemail simply hang up and try the next business on their list. They're not waiting for you. They're solving their problem, and they'll solve it with whoever picks up first.

The cost compounds in ways that are hard to see. You don't just lose that one job or appointment — you lose the lifetime value of that customer, the referrals they would have sent you, and the positive review they might have left. All because the phone rang at the wrong time.

Every Phone Answering Option Available to Canadian Small Businesses

Let's lay out the full landscape. These are the options Canadian small businesses are actually using today, from the cheapest to the most full-featured. I've talked to business owners who've tried each of these, and every one has real trade-offs.

Option 1: DIY (Personal Cell / Google Voice / Voicemail)

This is where most solo operators start: forwarding your business line to your personal cell, using Google Voice, or just relying on voicemail. It costs nothing or close to it, and it works — until it doesn't.

• Cost: Free to minimal
• Coverage: Only when you're personally available
• Capability: Basic call forwarding and voicemail
• Best for: Very early-stage businesses or side hustles with low call volume

The problem with DIY is that it scales with your time, and your time is the one thing you don't have more of. As soon as you're busy with a customer, you're back to missed calls.

Option 2: Hire a Part-Time or Full-Time Receptionist

The traditional solution: put a person at the front desk. They answer the phone, greet walk-ins, manage your schedule, and handle admin work. It's the gold standard for in-person customer experience.

• Cost: $30,000–$50,000+/year for full-time (varies by province), or $15–$22/hour for part-time
• Coverage: Business hours only (overtime or second shift for extended coverage)
• Capability: Full human judgment, relationship building, multitasking
• Best for: Businesses with enough revenue and foot traffic to justify a dedicated hire

The trade-off is obvious: it's expensive. For many small businesses, a full-time receptionist is the single largest overhead cost after rent. And even with a great receptionist, you still have gaps — lunch breaks, sick days, vacations, and every hour after 5 PM.

Option 3: Traditional Answering Service

These are companies that employ teams of live operators who answer calls on behalf of multiple businesses. They work from scripts you provide, take messages, and forward urgent calls.

• Cost: Typically $100–$400+/month depending on call volume and plan
• Coverage: Can be 24/7, though after-hours and weekends often cost extra
• Capability: Message-taking, basic call routing, some offer appointment booking at higher tiers
• Best for: Businesses that need live human coverage and have predictable call volumes

The biggest complaint I hear from business owners who've used traditional services is inconsistency. The operators handle calls for dozens of businesses and can't deeply know yours. Callers sometimes feel like they're talking to a call centre — because they are.

Option 4: AI-Powered Phone Answering

The newest option on the market. AI receptionists use conversational AI to answer calls, have natural-sounding conversations, answer questions about your business, and book appointments — all without human involvement.

• Cost: Typically $99–$500/month depending on minutes and features
• Coverage: 24/7 by default, no extra charge for nights and weekends
• Capability: Full conversations, appointment booking, FAQ handling, call summaries
• Best for: Businesses that want consistent, always-on coverage without the cost of a human hire

Full disclosure: this is the category Polaris Voice is in. I'll do my best to give you an honest view of both the strengths and limitations. AI receptionists are excellent for routine calls — the appointments, the common questions, the after-hours inquiries. They're not yet a replacement for the human judgment needed in emotionally sensitive or highly complex conversations.

Side-by-Side Comparison

What “Affordable” Actually Means (Pricing Breakdown)

The word “affordable” gets thrown around a lot in this space, and it means different things to different businesses. A $200/month answering service is affordable if it's saving you $2,000/month in recovered calls. It's expensive if your phone barely rings. Let's break down the real numbers.

Traditional Answering Services: Canadian Pricing

Most Canadian answering services charge based on a combination of a monthly base fee and per-minute or per-call charges. Typical ranges I've seen while researching the market:

• Basic plans: $80–$150/month for a limited number of minutes (often 50–100 minutes)
• Mid-tier plans: $150–$300/month for moderate call volumes
• High-volume plans: $300–$600+/month for businesses with heavy phone traffic
• Per-minute overages: Typically $1.00–$2.00+ per minute beyond your included allocation

AI Answering Services: Typical Pricing

AI receptionist services tend to use simpler, flatter pricing structures. Most providers in the Canadian market charge:

• Entry-level: $50–$150/month for limited minutes or features
• Standard plans: $150–$300/month with generous minute allocations and full feature sets
• Premium plans: $300–$500+/month for high-volume businesses with advanced integrations
• Per-minute overages: Usually $0.30–$0.75/minute, generally lower than traditional services

How to Calculate Your Actual Monthly Cost

Before committing to any service, do this simple math:

1. Check your phone system or carrier for your total monthly incoming calls
2. Estimate the percentage you're currently missing (if you don't know, a common range for busy small businesses is 20–40%)
3. Multiply missed calls by your average revenue per customer to estimate what you're losing
4. Compare that number to the monthly cost of the answering solution

For most service businesses, the math works out clearly in favour of some form of call coverage. The question isn't whether you can afford an answering solution — it's whether you can afford not to have one.

What to Look for Beyond Price

Price matters, but it's not the only thing that matters. After talking to dozens of Canadian business owners about their phone answering setups, these are the factors that actually determine whether they're happy with their choice.

Appointment Booking vs. Message-Taking

This is the single biggest differentiator. A service that takes a message and emails it to you is better than voicemail, but it still creates a delay. The caller still has to wait for a callback. A service that can book directly into your calendar — in real time, during the call — closes the loop immediately. The caller gets what they need, and you get a booked appointment without lifting a finger.

Industry-Specific Conversations

A dental office gets very different calls than a law firm. Your phone answering solution needs to handle the specific types of conversations your callers expect. Can it discuss your services knowledgeably? Can it ask the right intake questions for your industry? Generic script-reading is a red flag — your callers will notice.

• Dental/medical: Insurance questions, new patient intake, emergency triage
• Legal: Confidentiality awareness, conflict checks, practice area routing
• Home services: Service area verification, emergency vs. routine job classification
• Real estate: Property inquiries, showing scheduling, lead qualification

PIPEDA Compliance

This is non-negotiable for Canadian businesses. Any service that handles your customer calls is processing personal information on your behalf. Under PIPEDA, you're accountable for how that data is handled — even by third parties.

Key questions to ask any provider:

• Where is call data stored? (Canada is ideal; if it crosses borders, there should be transparency about it)
• Do they have a Data Processing Agreement (DPA)?
• How long are recordings and transcripts retained?
• Can callers request deletion of their data?
• Is there clear disclosure to callers that calls are being recorded or handled by AI?

Tool Integration

The best answering solution in the world isn't useful if it doesn't connect to the tools you already use. Look for integrations with:

• Your calendar (Google Calendar, Outlook, Calendly)
• Your CRM or practice management software
• SMS for follow-up confirmations
• Your existing phone system (can it forward calls without changing your number?)

Trial Periods

Any reputable service should let you try before you commit. A trial period lets you hear how calls are actually handled, see whether appointments are booked correctly, and gauge caller reactions. Be wary of services that require long-term contracts without a trial — they're betting you won't test the quality before locking in.

How to Get Started Today

You don't need to make a decision right now. But you can take three concrete steps today that will make the decision much clearer when you're ready.

Step 1: Check Your Missed Call Data

Most phone systems and carriers track incoming calls, including ones that went to voicemail or were abandoned. Log in to your phone system dashboard or call your carrier and ask for a call detail report for the past 30 days. Look at how many calls went unanswered, and when they came in. The numbers might surprise you.

Step 2: Estimate Your Monthly Call Volume

You need a rough idea of how many calls you receive per month to evaluate pricing plans accurately. Include both answered and missed calls. If you don't have exact data, start tracking for a week and multiply by four. This number determines which pricing tier makes sense for you.

Step 3: Try a Free Trial

The best way to evaluate any answering service — traditional or AI — is to experience it as your callers will. Most AI receptionist services offer free trials. Use the trial period to call your own business, listen to how calls are handled, and see whether the experience meets your standards.

Final Thoughts

There's no single right answer for every business. A solo consultant with five calls a week has different needs than a busy dental practice fielding dozens of calls a day. The important thing is to stop treating missed calls as an inevitable cost of doing business. They're not. There are real, affordable solutions at every price point.

Whatever you choose — a $0 DIY setup, a part-time receptionist, a traditional service, or an AI receptionist — the worst option is doing nothing and letting calls go to voicemail. Your next customer is calling right now. The question is whether someone will be there to answer.