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DX Savings

DX Costs

DX savings - Can they be achieved?! We offer a DX cost reduction service for businesses that are using the this service for their mailing requirements.

The Document Exchange or The DX service, is a postal alternative to The Royal Mail and is subject to annual renewal. At the point of renewal an upfront payment is required for continued use of the service over the next annualised period. DX Savings can be achieved if your pricing is not reflective of your usage so why not see if you can achieve savings by reducing you DX costs!

As we all know the day to day office expenditure that businesses incur is something we cannot do without unfortunately. The constant review process of these costs, as much as it practically can be, is always routinely monitored with a view to keeping them down.

As part of any cost reduction management exercise this service is one of those areas that should indeed be reviewed. The difference between The DX service and The Royal Mail is that although a similar offering, according to The DX, it should cost less than using the Royal Mail equivalent.

Also, whilst The DX service offers an alternative to the Royal Mail you may be surprised to know that if your DX account isn’t priced correctly the Royal Mail service can actually be the alternative to The DX.

The mailroom is often underestimated in its position within a business’s efficiency strategy. With time critical documents, distribution and ever demanding departments, mailroom costs can quietly spiral.

As it’s an annual fee it’s integral that you are safe in the knowledge that the subscription levied is as accurate as possible given the monitoring activity that takes place.

When The DX process renewal charges for the new annual subscription it is based on the previous year’s usage. They will ask a client to monitor the account internally for at least two weeks of the year and using a number of internal monitoring periods they undertake periodically through the same year, they annualise the volumes and apply these charges at the renewal period.

Without question The DX service is an excellent alternative to Royal Mail with over 20,000 businesses accounts across the UK they do give clients & businesses an option, and priced correctly can offer significant savings. However, like any other expenditure, the cost of The DX service can and should be reviewed. As the terms of the subscription require an upfront payment covering the annual period unlike the Royal Mail who offer what could be perceived as a ‘pay as you use’ service it is only fair that client and businesses are satisfied that what they are paying is a fair reflection for the service that is offered.

To assist firms in deciding whether it is a good time to review these costs with a view to making DX savings we have listed 5 reasons to consider reviewing your DX account:

  • The account has only ever been reviewed by the client/the DX and not independently i.e. a 3rd party (Procurement Savings)
  • There has been an obvious decrease in outgoing mail – Meaning a visible/physical reduction that creates an assumption that the external mail has reduced.
  • A change in work types – Due to some of the changes within certain sectors i.e. the legal sector areas like conveyancing have seen a reduction in the level of outgoing mail having a direct impact on volumes.
  • Staff restructuring- If there has been examples of redundancy over recent years this can again affect outgoing mail, especially within the legal sector
  • An ever increasing renewal charge – Simply put, if the account has never been reviewed and at times there have been increases then again this would be a valid reason to assess the subscription charges.

Instructing the Legal Procurement Group to review your account will, at the very least, reassure you that your accounts are accurately priced. It gives firms the ability to ‘reset’ the account should the account have been oversubscribed and in turn providing the client with the knowledge that moving forward, should the volumes remains the same, then there should be little movement in respect of an incremental subscription come renewal time.

So, to conclude and the answer the question…DX Savings, can they be achieved? Yes, we know based on our experience that if your account value is not in line with mailing volumes then there is a business that we can negotiate for you with a view to reducing your DX costs.