Your Answer:
I can do the work in-house, much more inexpensively.
Our Answer:
On the surface and at first glance, this is a true statement. If you compare your cost of paper and envelopes versus the cost that mail providers charge, your costs will be less. But there is more to consider, and many fail to consider these costs when evaluating the decision to outsource. Let’s look at some of those costs.
1. People
You have to pay someone to print, fold, insert and seal that mail. Add in employee benefits and even entry level employees could easily add $0.10 per mail piece.
2. Equipment
You need printers, inserters and postage machines, at a minimum. Whether you purchase that equipment or lease it, you can add $0.20-$0.25 per mail piece. On top of the machine itself, you have service and maintenance expenses. Add at least another $0.10 per mail piece here.
3. Space
You have to put the machines somewhere and office space in a nice complex can easily reach $30 – $50 per square foot. Add in another $0.25 per letter. There are other expenses but just considering these few, and it is easy to see how your costs to produce HOA mail in-house could easily reach $1.00 per letter not including postage. So, outsourcing just might make more sense than you initially thought.
If you would like to perform a more specific analysis, we have developed a tool that will allow you to determine your in-house costs, and whether you are making money or losing money on HOA mail. Click here to take the 10 minute test.
