There are many reasons to move from an in-plant model for print and mail to an outsourcing partner. One of the biggest motivators of switching is cost. But what are the in-plant cost savings? Skip Pawul, Executive Vice President and Co-Owner of PCI Group, offered insights on the cost savings potential customers can expect by outsourcing their in-plant print operations in this episode of Ask the Experts.
“The biggest thing is the hard capital costs, especially since the technology is moving so fast. If you are at the point of deciding on replacing an inkjet printer, that’s a $2 million decision. The inserters, at the level that we use, are another $1 million,” Skip said.
Those capital costs go away with outsourcing, as do all the ancillary costs around them, including the space, maintenance, and operators. With the investment necessary to streamline operations, it doesn’t make fiscal sense to hold onto a part of a business that’s not a core competency.
In addition to capital costs, you can realize more savings as well. “Because we have so much volume and have been doing this for so long, the transactional cost is much cheaper than someone doing it inside,” Skip noted. The cost savings add up, but the quality, accuracy, and compliance don’t. That’s the difference when you work with a leading transactional direct mail facility like us.
