reduce postage costs

If you print and mail documents to customers, including statements, invoices, and any other communication, postage is a big part of the budget. It’s an expense that’s hard to decrease, especially since postage routinely increases. In a time when you’re looking for ways to save money in operations, you can reduce postage costs with optimization strategies when you work with a transactional print and mail company.

Why Is Outsourcing a Way to Reduce Postage Costs?

Working with an outsource provider, you’ll be able to combine your mailings with others, to maximize savings. Postage optimization is part of outsource provider’s organizational framework, and they know the system just as well as the USPS.

Outsourcing provides many other expense reductions that make working with them even more attractive. Postage is just one part of the total cost of ownership of an in-plant. The impact of all these savings is an excellent answer to the priority of cutting costs.

So, how do print and mail experts get the best rates for postage?

The Details Behind the Postage Savings

There are several areas in the postage cost ecosystem for savings. Let’s look at these in depth.

Reducing Waste from Inaccurate or Duplicate Addresses

Your system may not always have the correct address for customers. Additionally, your data files may include duplications not previously identified. The solution for this is address hygiene. This practice involves technology tools and the USPS Intelligent Mail® barcode (IMb). This tool can locate and capture addresses that are inaccurate or incomplete. The result is less waste in mailings.

Some misaddressed letters may not get flagged in address hygiene, which creates return mail. Instead of this physically coming back to you, you can manage it electronically. A digital file of Change of Address (COA) and Undeliverable as Addressed (UAA) occurs in this workflow and can automatically update the address in the database. These revisions can happen in real time, which delivers more savings.

Address Hygiene Management

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mail sortingHigh-Volume Presorting

You may currently benefit from presorting, but these savings depend mostly on volume. USPS incentivizes customers to do this for them by segmenting by zip code. Since their labor does less work, they’ll reward customers with a better rate. It all goes back to volume because more mailings mean the ability to group more zip codes and earn larger savings.

Taking Advantage of IMb

USPS uses the IMb, a 65-bar Postal Service™ barcode, to sort and stack. With a single barcode, mailers can use multiple programs simultaneously. It also enables easier tracking and insight into the mail stream. In addition, print and mail companies use them for letters prepared for automation prices, which further reduces postage costs.

Combing and Organizing Boosts Sorting Discounts

In addition to presorting, print and mail companies practice commingling. It further categorizes letters by zip codes. Securing these savings again goes back to volume and how many like zip codes are in the bundle. The greater production of mailings, the greater the cost reductions.

Mail Piece Standardization Supports Postage Optimization

The letter itself, including the envelope and paper weight, can also be an area to decrease postage. First, you want to standardize your envelopes, which are typically a #10. Not all your documents may fit into this, but you’ll get a better rate if you can convert most to this.

The second consideration is the paper weight. Automation letters must be 3.5 ounces or less. You may not have given much thought to the paper you use, but a transactional printer does, and their stock will always be within this range to maximize savings.

Reduce Postage Costs with a Reliable, Compliant, and Accurate Partner

When organizations work with PCI Group, they can reduce postage costs significantly. It’s a big part of why many choose to work with us. You can realize even more savings when outsourcing to us and feel assured of our reliable, compliant, and accurate services. If you want to cut expenses while improving all other areas of transactional print and mail, you’ll find a great partner in us. Contact us today to learn more about outsourcing.