Business news for people who sell what they knowAboutContact
The Operator
Sales, marketing and AI for coaches, consultants and experts
Money

What a discovery call really costs you, with a worked example

The calendar invite looks free. Add up the time, the payroll and the work you did not do, and every unqualified call carries a price tag most owners never see.

O
By The Operator Desk
· 4 min read
Every 45 minute call has a cost, whether or not anyone writes it down.
Every 45 minute call has a cost, whether or not anyone writes it down.

Discovery calls feel like the cheapest part of the sales process. No ad spend is attached to them, the software is already paid for and the prospect asked for the meeting.

But calls are made of hours, and hours are the scarcest thing in an expert business. Once you put a number on a single call, decisions about who gets one start to look very different.

The three costs inside every call

There are three separate costs to count.

Most owners count the first loosely, half count the second and ignore the third completely.

A worked example

Here is an illustrative business. The numbers are made up but realistic enough to test against your own.

An expert sells a $6,000 programme. A closer takes the calls on a base of $3,000 a month plus 10% commission. A setter books and confirms calls on $2,000 a month.

Each month the team books 80 calls. 60 people show, and 12 buy.

Start with time. Each call is 45 minutes, plus 15 minutes of preparation and 15 of follow up. That is 75 minutes of closer time per call that happens.

No-shows still cost around 25 minutes in preparation and waiting. Across the month: 60 shows at 75 minutes and 20 no-shows at 25 minutes comes to roughly 83 hours.

Now payroll. Base pay for the closer and setter is $5,000. Commission on 12 sales at $6,000 is $7,200.

Total sales payroll: $12,200. Spread across 80 booked calls, that is about $153 per booked call, or about $203 per call that actually happened.

At roughly $200 a call, a calendar full of people who were never going to buy is not a pipeline. It is an expense line.

Finally, opportunity cost. Suppose the founder takes the overflow, ten calls a month, and their time is worth $300 an hour based on what they could earn delivering paid consulting. Those calls, at 75 minutes each, cost 12.5 founder hours, or $3,750 of work that did not happen.

Put it together and the business spends somewhere around $16,000 a month to run 80 booked calls. That is around $1,300 in call cost for each of the 12 sales, before a single dollar of ad spend.

Pricing your own calendar is one of the most revealing exercises in a sales led business.
Pricing your own calendar is one of the most revealing exercises in a sales led business.

What the numbers tell you

The interesting part is not the total but where it goes. In this example, 20 no-shows and perhaps 25 shows who were never a fit absorb a large share of the hours. If even half of those calls could be filtered out before booking, the closer gets back dozens of hours a month.

Those hours can go to faster follow up with genuine prospects, which tends to lift close rates, or simply to running the same number of sales with less payroll.

It also reframes the cost of a lead. If an unqualified call costs you $200 to run, a $40 lead that books a bad call has really cost you $240. A qualifying question that removes it is worth more than it looks.

Ways to lower the cost per call

None of these require a new offer or a new team.

Make it a monthly number

Add "cost per held call" to your monthly report alongside close rate and cash collected. Divide sales payroll and any founder time on calls by the number of calls that happened.

Watching that number over time tells you whether your qualification is improving and whether your team is getting more efficient. And it ends the comfortable idea that a discovery call is free, which is often the first step towards a sales process that can grow without the calendar becoming the bottleneck.

ShareCopy linkEmail

Read next