Postage costs continue to increase. The USPS typically raises them twice a year, with the last being in July of 2025. It may seem that getting better rates is out of the question, as you don’t have the volume of a professional mail house. However, these providers employ postage optimization services to ensure the best rates.
Let’s review how postage optimization works and why it will save you money.
What Are Postage Optimization Services?
These services describe strategies and tactics that print and mail companies apply to guarantee the lowest rates from USPS. Crucial to providing this is the high volume of mail they produce. There are other specific methods that they use to qualify for the lowest cost for mailing First Class letters.
4 Postage Optimization Services
So, what’s the secret to receiving the best rates? By using these approaches, you’ll see a significant reduction in these fees.
Waste Reduction
How many letters do you send each month that are inaccurate? Addresses can be incorrect for a number of reasons. Flagging them before they hit the mail stream reduces the chance of undeliverable mail and the costs associated with it.
Address hygiene tools eliminate much of this waste. They use the USPS Intelligent Mail® barcode (IMb) to find and capture addresses that are incorrect or incomplete.
Should the system not catch something, the service handles these digitally instead of a physical return. The address database receives a digital file of Change of Address (COA) and Undeliverable as Addressed (UAA) and updates in real time.
IMb Presorting
The IMb has more use cases for optimizing postage rates. The barcode supports sorting and stacking for high-volume presorting by ZIP code. Presort mail includes First Class and Standard Mail.
Transactional communications companies apply this and use a third-party specializing in this. To ensure compliance, every envelope is sealed before delivery. Doing so maintains the integrity of the content, keeping it secure.
When the letters arrive at USPS, it’s less work for them, which they provide a lower rate for in return.
Commingling
Commingling works in unison with presorting. It supports categorizing letters by ZIP code and also uses the IMb barcode for automation.
This more precise way of ZIP code sorting offers another way to receive the best postage rates.
Standardizing Mail Pieces
Are the letters you send all the same size, and do they meet First Class mail criteria? If not, you’re overpaying for postage.
Ideally, you should use #10 envelopes for all mailings and use paper that weighs 3.5 ounces or less. You may have been unaware that making these tweaks reduces postage costs.
A transactional print and mail provider always keeps this in mind and can help you transition to these specifications.
Want Better Postage Rates? Work with PCI Group
As a single organization, you’ll find it challenging to implement the strategies on your own. Remember, the first and most critical aspect is volume. You’ve likely seen yours decrease as more customers switch to digital-only communications.
Postage optimization services are your best approach to reducing postage costs. These will only rise, so locking in a better rate is usually feasible only when working with professionals like PCI Group. We’re a transactional print and mail company focused solely on these communications.
We are experts in this space and have team members who focus on reviewing and implementing programs to achieve the best rates. Our workflows can also improve compliance, security, and accuracy.
Let’s talk about getting better rates. Contact us today to learn more.
