Question-and-Answer Session
Operator
Thank you. (Operator Instructions). And that first one will come from the line of James Kissane from Bank of America. Please go ahead.
James Kissane - BAS-ML
Thanks. Tom can you give us a sense of the revenue potential on the poor client wins in the Output business and may be the impact on margins been and does it help you get the 10% margins in reasonable time frame?
Thomas McDonnell
I think it will help us move there, Jim. As we mentioned, the three plans at Output are all now really on the same technology, all run by the same shop management technology software.
During the fourth quarter last year and the first quarter this year, telecommunications clients, lot of them decided to reduce the call detail that they were producing on the statements so that reduced the number of statements. Generally our billing now the rhythms start with a higher price for the first page and decline with subsequent pages. So some of that capacity that was freed up by printing less pages per bill for those clients is been picked up by the bills from these new clients. So that should improve the margins.
When you deal with any of these big clients basically coming from in house operations, there is not insignificant amount which has been reflected partially already of cost to absorb some of their transition out of equipment cost and so forth. So I think that the assumptions that the margins will improve is valid. It will move us towards that, rather we can get to the double-digits next year.
That's still our target to try and get there, but I think we'll make significant progress toward it. We are trying to break out the revenue. We're basically we're mailing about say actually to 20 some odd million, there is roughly say 540 million mail for the quarter.
So that's 2.1 billion pieces of mail for the year. The 300 million would be about a 7% pick up. So I don't think it would be unrealistic to say that's probably about where the revenue would go, but it should come in at higher margins.
James Kissane - BAS-ML
Great and I think you talked about the pipeline being pretty strong in Output in the past. Is it so strong after these three or four wins?
Thomas McDonnell
Well these take a big chunk out of it, but there's still a reasonable amount out there. I think as we've talked about probably for longer than most of you want to hear that the trend is, there is some movement to electronic presentment, which we of course support and more movement towards more sophisticated bill, we are using color and going down to individualized messages at the customer level. In house operations have challenge we're stepping up both to the technology and stepping up with projections, that may show overall reduced volumes and therefore higher fixed cost for images. So there is more activity in these areas then we've seen for some period of time. So I'd say that pipelines are solid. It may not be I won't go so far to say robust, but it's a solid pipeline.
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