Are postage cost increases unavoidable? The USPS typically makes rate changes twice annually, with the next one scheduled forn July 13, 2025. Overall, costs surged by 7.4%. Companies managing their own print and mail shops will face a hit to budgets, as more money will be necessary to cover these. It can be even more expensive in the transactional communications space.
Postage costs have become a key concern for organizations. As they seek to drive efficiency and identify areas of spend to cut, this line item may be on the list. If you want to avoid these higher expenditures, there are several strategies to consider.
Outsource Wisely; Not All Print and Mail Companies Are the Same
In business, one of the best ways to cut costs is by outsourcing. By doing so, you eliminate many expenses, including labor, overhead, and equipment. However, every company that provides print and mail services isn’t the same.
While postage isn’t necessarily higher for transactional print and mail, it is quite different from promotional mailings. These documents must adhere to compliance and security standards. They must be separate from other production spaces, which could mean these companies can consolidate mailings to have an overall larger volume.
Volume in mailings is what delivers savings. Those who solely operate in transactional communications can facilitate high-volume presorting in a compliant manner. They sort and stack using the USPS Intelligent Mail Barcode (IMb) and commingle, which categorizes letters by ZIP codes.
These activities enable those businesses to get the best rates for you. Volume is key to locking in the lowest postage costs. Thus, you’ll be better off with a provider focusing on transactional mailings.
Reduce Undeliverable Mail
How much postage expense do you waste on undeliverable mail? It can add up fast, which is why experts use address hygiene and scrubbing tools. It works by combining proprietary technology and the IMb. Data sets from the National Change of Address (NCOA) and Address Element Correction (AEC) also help in identifying wrong addresses.
The system scans addresses to identify inaccurate or incomplete addresses. If a new address is found, the system replaces the incorrect one. Whatever new information the technology finds is reported back to the company.
The amount of postage this could save you may be considerable. Additionally, you’ll have more confidence that recipients are receiving your communications.
Standardize Mailings
Another postage optimization strategy to consider is standardizing mailings. The weight of the mailing and the envelope size all factor into postage costs. An easy win here is to update all mailings to use the same #10 envelopes when possible.
In terms of paper weight, automation systems require it to be 3.5 ounces or less. You may think that paper is paper, but transactional printers use large rolls of white paper that have the ideal weight to ensure letters meet this threshold.
Audit the Volume of Mail You Send
Looking at your mailing data can also be an approach to reducing postage expenses. You may uncover many areas to investigate, including:
- Duplications of mailings
- Two or more letters going to the same person that could be consolidated
- Continued sending of paper notices when the customer has opted into email-only
- These reviews could reveal multiple savings.
Promote Electronic Delivery of Communications with a Compliant Email Provider
You could eliminate many mailings by promoting email communications to recipients. You can actually promote this within the mailed statement. If dynamic printing is available, this message could appear on the document for specific addressees.
However, you shouldn’t be using a standard marketing email platform for these communications. In many cases, they lack the security and compliance measures required. They may meet the absolute minimum rules in place around content with PII (personally identifiable information) and PHI (protected health information). That’s not good enough!
The platform needs layers of security to keep this data safe and deliver it securely to the right person. Some key things the system should have include:
- Firewalls and Intrusion Prevention Systems (IPS)
- SFTP file transmission protocols to receive data
- Using encryption for data while at rest or in transit
- Built-in compliance checks and balances to meet all regulations
A transactional email solution also has critical features that ensure placement, authentication, and deliverability. For example, sender certification boosts the amount of inbox placement rates, so the messages aren’t being relegated to spam or blocked.
Email authentication supports deliverability, too. It tracks the health of email authentication to protect your reputation.
Postage Costs Ballooning Doesn’t Have to Be Inevitable
While it may seem like you’ll never see these expenditures decrease, you can control this cost segment more than you know. By working with a credible, transactional-focused provider, you can enjoy better rates due to volume, more accurate addresses, and standardization.
You can also permanently remove these expenses by promoting the adoption of email delivery, which a partner like PCI Group offers.
With our team, you can achieve greater accuracy and reliability in these communications while paying less in postage.
Let’s talk about it. Request a no-cost consultation today.
