Another change that becomes effective on January 28, 2024, revolves around postage statements. USPS will no longer accept hard-copy postage statements. Organizations must submit them electronically before sending the mailings.
Why Is USPS Raising Rates?
USPS announced in 2022 to expect price adjustments biannually in January and July. While USPS is not a private for-profit organization, it still has budget numbers to meet. The official statement regarding raising rates mentioned it’s in response to inflation and the need to generate revenue to achieve financial stability in meeting the Delivering for America 10-year plan.
So, how can a company ever reduce its postage bills? By outsourcing transactional print and mail.
How Outsourcing Saves Money on Postage
The key to the best rate for USPS postage is volume. Print and mail businesses will always have volume in their favor because it’s all they do. In addition to volume discounts, you can reduce postage expenses with these additional services:
- Address hygiene tools: Using proprietary technology and the USPS Intelligent Mail® barcode (IMb), print and mail providers locate and capture addresses that are inaccurate or incomplete. The result is less waste in operations. The system may miss some, which creates return mail, which is manageable electronically. The USPS would send a digital Change of Address (COA) or Undeliverable as Addressed (UAA) file, and it would then automatically update addresses in the database in real time.
- High-volume presorting: You can achieve the maximum volume discount with presorting, which is simply segmenting by ZIP codes. Doing this before delivery of the mail to USPS means they have to do less work, and they’ll give you a better rate in exchange.
- Sorting and stacking with the IMb: These barcodes are essential in postage optimization. Mailers would be able to use multiple programs simultaneously. Using the IMb also makes tracking easier. Print and mail companies apply this to letters prepared for automation prices.
- Commingling: Beyond presorting, this approach also optimizes postage usage. It categorizes letters by ZIP codes.
- Mail piece standardization: When working with mailing experts, they can recommend standardizing envelopes to #10 and always use paper that weighs 3.5 ounces or less. These are two more ways to get the most out of postage discounts.
- Managing e-delivery more efficiently: If your goal is to move more people to digital communications or need to make the process more effective, transactional mail companies also have e-delivery capabilities. It’s a secure, fast, and cost-effective framework in a centralized location, which tracks all delivery and enables interactive features like sending receipts for payment.
Pay Less in Postage Fees, Gain Much More with Outsourcing
Outsourcing is the best way to reduce your postage expenses. With proven workflows and immense volume, professionals have the infrastructure to deliver the best rates. Outsourcing has many other benefits—high quality, improved accuracy, assured compliance, and more.
Explore all you can gain by reviewing our transactional print and mail solutions.