Emailing Invoices and Statements

Why Should I look at Emailing Invoices and Statements?

In today’s economy, every dollar counts.  Businesses of all sizes are searching for ways to quickly cut costs, increase efficiency and recover receivables faster.  One simple way is to email your invoices and statements.  The cost is a fraction of what you will pay to use the mail system and will save you time, labor, expenses and even the environment.

Many businesses calculate only the hard costs they incur to send an invoice, such as materials and postage.  They forget to factor in the labor costs; we will take a look at both of these.  First, let’s take a look out how things break down for materials and postage:

Yearly Cost of Invoicing

Number of invoices sent (96 per week)

5000

Supplies (ink, envelopes, laser invoice)

$2,100.00

Postage ($.44 per envelope)

$2,200.00

Yearly Material Cost

$4,300.00

As you can see, to send out 5000 invoices the costs of materials will run the average business about $4,300.00 or $0.86 per invoice.

Now let’s look at the cost of labor:

Number of invoices sent (96 per week)

5000

Labor (print and review at $0.14 per
invoice)

$700.00

Labor (fold, stuff and seal at $0.12
per invoice)

$600.00

Labor (postage and mail at $.05 per
invoice)

$250.00

Yearly Labor Cost

$1,550.00

 Labor costs will vary based on where you are located in the US, but at a minimum you can see the annual labor costs will be about $1,550.00.  Add in the material costs and the average business will spend $5,850.00 or $1.17 per invoice.  Some research has this figure closer to $1.50.  The above example only covers the invoicing side; imagine the savings if you would email statements too!

Real Savings

If you do 5000 Invoices and Statements a year at a rate of $1.17 per copy (material and labor).

With 75% customer participation yearly savings would be $4,387.50!

If you do 32,000 Invoices and Statements a year at a rate of $1.17 per copy (material and labor).

With 75% customer participation yearly savings would be $28,020.00!

If you do 50,000 Invoices and Statements a year at a rate of $1.17 per copy (material and labor).

With 75% customer participation yearly savings would be $43,875.00!

By integrating with the way businesses use the Internet,
sending invoices and statements via email is a natural extension of processes
that are already in place.

“My customers will never go for this!”  I know that’s what most of you are thinking as you read the article, but you would be surprised how many people are accepting of this.  In this day and age most institutions (banks, utilities, etc.) send statements out this way, Think of how many you get via this method.  Explain to your customers that by doing this you are cutting your costs to help keep prices down.  Some customers may fight this and that’s OK.  Let’s say 25% of your customers reject this option, that still leaves you with 75% emailing and that’s still a savings of $4,387.50.

So what are you waiting for?  Call GivenHansco for more details!