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Re: Invoice question
Normally it is hard to give an average for a single step in a series
of steps that make up a single business transaction. The averages
very widely between $18 and $140 depending on your business
processes, but these averages include every time and expense at every
point in the transaction lifecycle.
My personal experience is an average of around $30 to $45 per
transaction prior to moving to an electronic commerce process. If you
do a few thousand transactions with a single trading partner over the
course of a year, now your starting to talk real money. These numbers
can very drastically depending mostly on how many hands must touch
the transaction prior to the invoice making it to the postoffice and
the percentage of errors incountered along the way.
Here is a possible example of some of the charges that could make up
the cost of an invoice. Let's keep this short and simple, let's say
that you cut an invoice for every order received and that the clerk
makes a mistake about 1% (this is very low) of the time on 1000
transaction per month or 12,000 per year and you invoice for each
transaction. For each mistake you suffer a $500 (Not unusual)
chargeback, that must also be factored in. 10 chargebacks at $500
each, $5,000 per month or $60,000 per year. Now through in the fact
that the employee just spent 2 days or more over the course of the
month doing nothing but verifying invoices and stuffing 1000
envelopes $4000 per year (salary $12 per hour, benefits, vacation and
sick time). Add $5400 per year in materials $.45 each (paper,
envelope & postage) or $69,400 per year total or about $6 per invoice
and we still haven't touched on the employee time involved within
manufacturing, warehousing, shipping and management.
Sorry, but I need to run, I hope this helps.
Stephen Case
EDI Associates, Inc.
http://www.ediassociates.com
503-572-6321
--- In Jeff Garwick <Jeff_Garwick@b...> wrote:
> I only need 5 responses on this! Not 100.
>
> On average what are the costs to produce and send one paper invoice
to a
> customer?
>
> Print job is automatic, however an accounting clerk must manually
stuff the
> envelope.
> No bulk postage rates. Time, paper, envelope & postage $0.45 on
average
> per invoice?
>
> Thank you
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