When factoring in the cost of labor, paper, ink and postage, sending bills to your customers can take a big bite out of your profit margin. But there are a number of ways you can cut the costs of invoicing significantly.
Mitch Rose, vice president of marketing at Billtrust, a company that handles outsourced paper, fax and online billing for other companies, gives BusinessNewsDaily readers six ways they can cut their invoicing costs.
Optimize the use of bill batching — The more invoices you can put in an envelope the lower your postage costs will be. Make sure you are sorting your bills by account number or address so that your staff puts all bills for the same customer in a single envelope.
Use a multi-envelope strategy — Most small businesses deliver their invoices in No. 10 envelopes and flats (catalog-size envelopes) depending on the number of pages being sent. However, recent postal hikes have increased postage rates for flat envelopes by more than 40 percent. With a 6-by-9-inch envelope, more invoices can be put into a single envelope without having to use a flat or multiple No. 10s.
Leverage postal discounts — Make sure you are properly presorting your mail by segmenting each piece per zip+4 code.
Fix your uncertified addresses — The United States Postal Service reports that nearly one-fourth of all the mail that goes through its system contains an error. If the address on your piece of mail is not recognized it will not qualify for presort discounts and will be mailed at full rate.
Convert more of your customers to electronic bill delivery — Sending your bills via email, fax or web is the single most effective way to avoid the costs (and hassles) of U.S. mail delivery.
Use your bill to drive revenue — Since you are already paying for the postage and the envelope, bill messaging has the potential to offer the greatest payback on your marketing investment. With the right software, you can personalize the marketing message on your bill based on criteria such as geography, dollar amount purchased, or type of products purchased. 3 Ideas to Help Cut Postal Costs