When starting a new business, choosing a phone number is one of the important decisions you’ll make. One of the first decisions you’ll need to make is whether to get a local or toll-free telephone number. A local business number is one that has a local area code, while a toll-free number is a number with a 1-800 or other toll-free area code. In this article, we’ll explore the differences between these two options and help you decide which one is right for your business.
Defining local and toll-free business numbers
As a business owner, one of the first decisions you will need to make is which type of telephone number you should use for customers to reach you. The two main options are local business numbers and toll-free business numbers. Understanding the differences between these two options is essential in making the right choice for your business.
What is a local business number?
A local business number is a telephone number that is assigned to a specific geographic area, such as a city or state. It usually consists of an area code and a seven-digit number. Depending on where you are located, local business numbers can be costly to obtain, as well as to maintain.
What is a toll-free business number?
A toll-free business number is a number with an 800, 888, 877, or 866 prefix. It is a nationwide telephone number that customers can call for free, no matter where they are located. The cost of setting up and maintaining a toll-free business number is usually much lower than a local business number.
The benefits and drawbacks of each option
Local business numbers offer the advantage of being tied to a specific geographic area, which can be helpful if your business is primarily local. However, these numbers can be expensive, and customers may be put off by the cost of long-distance calls.
Toll-free business numbers can be beneficial if you have customers who are spread out across the country. However, these numbers can be viewed as impersonal and may be seen as less trustworthy than a local number.
When deciding which type of telephone number to use for your business, it is important to weigh the advantages and disadvantages of each option. Here is a list of the benefits and drawbacks of local and toll-free business numbers:
Benefits of Local Business Numbers:
- Tied to a specific geographic area
- Can be seen as more trustworthy
Drawbacks of Local Business Numbers:
- Expensive to obtain and maintain
- Customers may be put off by long-distance charges
Benefits of Toll-Free Business Numbers:
- Nationwide number that customers can call for free
- Inexpensive to obtain and maintain
Drawbacks of Toll-Free Business Numbers:
- May be viewed as impersonal
- Less trustworthy than a local number
What are some potential perception issues associated with using a local business number?
Using a local business number can be seen as a sign that a company is small, localized, and not well-known. This can be a problem for businesses that are looking to expand their reach and customer base. Customers may feel that the company is not reliable or credible, since it only has a local number. Additionally, customers may be less likely to call a local number, as it could require them to dial long distance.
Another potential issue is that customers may not be able to remember the number, or may forget it due to its length or complexity. If customers cannot remember the number, they may not be able to contact the business easily.
Finally, a local business number may not be seen as professional. Customers may perceive the business as being amateur or unprofessional, which could lead to a lack of trust in the company.
How can a toll-free number enhance your company’s brand recognition and national reach?
A toll-free number can help to enhance a company’s brand recognition and national reach. By having a toll-free number, customers will be able to call the company without having to pay for long-distance charges. This will make the company more accessible and increase the likelihood that customers will call.
Additionally, a toll-free number makes the company appear more professional and credible. It can also help to make the company more memorable, as customers will be able to easily recall the number.
Furthermore, a toll-free number can help to establish the company as a national business, rather than a local one. Customers will be more likely to view the company as a larger, more established business, which can help to increase trust and credibility.
What are some cost considerations when choosing between a local or toll-free business number?
When choosing between a local or toll-free business number, one of the main considerations is cost. With a local number, there may be set-up and usage fees, as well as monthly or annual charges. Additionally, there may be long-distance charges for customers who are calling from outside the local area.
On the other hand, toll-free numbers usually require a monthly fee, and may also require an initial setup fee. Additionally, there may be additional charges for features such as voicemail, call forwarding, and call recording.
Furthermore, it is important to consider any additional costs that may be associated with using a toll-free number. This can include charges for additional minutes, as well as any taxes or fees that may be applicable. Additionally, there may be setup fees or monthly charges for features such as call routing, voicemail, and call recording.