By Adam Lewenberg, CMDSS, MDC, President of Postal Advocate
Inc.
There are plenty of ways to reduce mailing costs but many of
them require investment in equipment, software, labor etc. I thought it would
be a good idea to give you some ideas on services you can use that would be
free or only had a minimal investment. The best part is that all of these
strategies should be easy to implement and could have a quick impact to your
bottom line.
Presort Services-
6-15% Savings If you are sending out over 400 pieces per day or 1,000 on single
mailings, you may be able to use a Presort Service to get postal discounts. The
most typical arrangement is you would meter your mail at the First-Class Mail®
Presorted rate (Currently $.433 vs. $.46 single piece rate), the provider will
pick up at your site and comingle with other mailers. These presort services
will run this mail through their sorting system to break it down to the deepest
postal discounts. The USPS pays them a Value Added Rebate (VAR) of the
different between the metered rate and the final rate the item was submitted.
These services can typically handle First-Class Mail® Letters, Flats, and
Standard Mail®. Some providers will also work with International. Larger volume
customers will be able to get deeper discounts.
Mail Equipment and
Postage Audit and Recovery Services 30-70% Savings these services will look
at what you are spending on your mailing equipment to find ways to reduce
costs. They will make sure you have the right machines at the correct rates as
well as manage renewals and vendor negotiations, to help save up to 70% on
equipment costs. These firms are also looking for any vendor overcharges or
postage recovery opportunities from dormant accounts. Mail Audit and Recovery
Services are especially valuable if you have multiple locations and lack the
visibility across your enterprise to all of the mailing spends. The best part
is they do not charge for their services and only share in a piece of any
savings or recovery. This minimizes your risk and gives you a partner to find
any available savings.
PC Postage This
is being able to generate postage from a computer without needing a meter or
trips to the Post Office to buy stamps. I am including this because the costs
are very low, ranging from free for limited feature systems to $40 per month
for versions that handle shipping and other integration. You should consider PC
Postage if you fit into one of the following groups:
1. You are a low volume mailer spending less than $100 per
month in postage.
2. You are a company that ships product or sends Priority or
Express Mail®. You will get Commercial rates for many classes which will save
money and the shipping label will include the destination and return address,
postage and tracking barcode.
New platforms are web based and can be used while travelling
or in home or remote offices.
USPS Intelligent
Mail® Small Business Tool the USPS wants to support small volume mailers
and now offers a way to qualify for IMB Full Service for free! Through their
gateway you can process mailings of less than 5,000 pieces (125,000 pieces per
permit maximum) without needing to purchase any software. Here is how it works.
1. Register at the customer gateway
2. Fill out the information for the mailing.
3. Upload the your mailing list (Excel or CSV format)
4. Print your forms, labels or direct the output to a
printer.
This is a great way for small volume mailers to be able to
comply with the newest postal requirements without needing to invest in
software. Here is a PDF from the USPS that goes over more detail on how it
works.
Commercial and
Commercial Plus Rates for USPS Express and Priority Mail® The USPS has three rates for Express and
Priority Mail®:
1. Retail: What you pay at the USPS counter
2. Commercial: 2-14% Savings - The rate paid through a postage meter, PC Postage and USPS Click and Ship.
3. Commercial Plus: Additional 2-13% Savings - High Volume
mailers can get additional discounts if they commit to specific volumes. The
best part is you can use your combined output across multiple locations to
qualify. Here are the requirements to apply but you should reach out to your
USPS shipping specialist to verify and discuss options:
a. Priority Mail®: 5,000 pieces at
one time or 75,000 pieces in the previous year.
b. Express Mail®:5,000 pieces in
the previous year.
A great way to save is to look at your volumes and how they
are being processed today to make sure you are getting the lowest rates.
USPS Incentives and
Discounts The Post Office has been trying different tactics to get us to
mail and ship more which can be a huge added value to you. I am going to list a
few examples that may be helpful that should be considered:
1. Second Ounce Rides Free: A two ounce First Class Mail®
Presorted and Automation Mail piece is the same price as a one ounce letter
saving $.20. This is designed to get mailers adding extra inserts to increase
the value of the piece of mail.
2. Free Tracking on USPS Priority Mail®: With the last rate
change the USPS has just made their tracking service free vs. the $.75 they
used to charge.
3. USPS Promotions and Incentives: The USPS has started
having time limited programs where mailers can get money back for sending
specific types of mail. Examples include putting QR Codes on the piece or
adding a picture permit which is being offered this summer. Click on this link
to see the most current promotions.
Setting up a USPS
Caps Account Most businesses will have multiple USPS accounts and it is
often difficult to manage and maintain proper funding levels. Because of this,
funds get lost and accounts get closed. The USPS offers a way to link all of
these accounts to a central portal for funding, reporting and visibility. It is
free to set up these accounts and it is a best practice by many experienced
mailers.
Mail Equipment
Provider Postage Payment Programs It is also a best practice to reach out
to your mail equipment provider to see what they have available for postage
payment options. Here are some examples that may be available to you:
1. Being able to link all of your locations meter and permit
accounts together for single visibility, funding and control.
2. Postage advances for your meter and permit accounts.
3. Interest on your pre-deposited postage balances.
4. Reward programs for postage and permit use along with
other vendor spend.
Every Day Direct Mail
(EDDM) from the USPS The USPS is trying to get new businesses to use the
mail and has created a service to make it easy and affordable. All you need to
do is go to the USPS gateway and enter the area you want mailed and the portal
will tell you the cost, number of pieces, and will generate the proper postal
forms. There are no addressing requirements and rates are $.16 or less. This is
a great service for businesses that want to mail within a specific geographic
location to all addresses.
Optimized Business
Reply Accounts Business reply accounts typically go on autopilot but this
could end up costing you thousands more than you need to spend. The most
important thing to look at is the numbers of returns that you are getting to
make sure you are in the right type of account. The cost to maintain these
accounts ranges from $200-9,335 per year but as the cost goes up, the per piece
return price goes down. I recommend meeting with your USPS Mail Design
specialist to make sure you are set up with the right account structure to
minimize total return mail spend.
Hopefully some of these 10 items will help you save money on
mail or at least point you to where you need to go to get more information.
There is never one way to reduce costs. It is being able to look for the areas
that may have been overlooked in the past or where new rules, services and
technology can make an impact.
Adam Lewenberg, CMDSS,
MDC, is President of Postal Advocate Inc., runs the largest Mail Audit and
Recover firm in the United States. Their mission is to help entities with large
numbers of locations reduce mail related expenses, recover lost postage funds, and
simplify visibility and oversight. He can be reached at (617)372-8653 or
adam.lewenberg@postaladvocate.com.
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