Postage can be a considerable cost center in transactional print and mail. Reducing the rate is possible with postage optimization, which includes presorting. But what is presort mail, and how does using it deliver a better rate?
What Is Presort Mail?
Presort mail refers to sorting letters by ZIP code and grouping them prior to delivering them to USPS. In doing this, it reduces the workload of processing by the post office. The USPS “rewards” this by providing a discounted rate for postage.
Professional printers that produce high volumes of letters capitalize on presorting and deliver those savings to their customers.
What Types of Mail Does Presorting Apply To?
Two categories of mail can use presorting: First Class and Standard Mail. Most transactional communications fall under First Class. They are the right size and weight for this classification. The weight should be 3.5 ounces or less for letters or 13 ounces for flats.
There are typically minimum quantities to qualify for the reduced rate, which is 500 pieces or greater. Professional printing companies usually have no issue with meeting these on a daily basis.
How Do Professional Printers Presort?
Some companies do this in-house. It can be an operational burden, however. Most choose to use a third-party presorting service like Pitney Bowes.
By partnering with experts in presorting, printing companies can ensure the deepest discounts for postage by further combining like ZIP codes. The mailings are already sealed, so there are no security or compliance concerns regarding transactional communications.
Those specializing in presorting follow all the stringent requirements and have strong relationships with USPS.
What Is the Rate for Presorted First Class Mail?
The postage cost for these letters is the same across all weights (1, 2, and 3 ounces). The rates are also subject to what the retail rates are at the time. Postage increases occur at least twice a year, currently.
When the retail rate increases, the presorted cost does as well.
Does Presorting Impact Delivery Speed?
Presorted First-Class Mail delivery is the same as or quicker than standard First-Class letters. It’s not as fast as Priority Mail, but it can arrive in mailboxes within one to three days within a state and one to six days nationally.
A transactional print and mail provider always knows the expected delivery window of these communications. Some must arrive within a specific timeframe to meet regulations. For bills or statements, the letters must arrive promptly to ensure the addressee has plenty of time to remit payment by the due date.
What Are Other Ways to Reduce Postage Costs?
Other initiatives support reduced postage costs. Some happen early in the process, such as address scrubbing. This process removes duplicates and corrects wrong addresses. It minimizes undeliverable mail and the costs associated with it.
Commingling is another tactic, which works hand in hand with presorting. It can determine the optimal presorting approach. It aids in categorizing letters by ZIP code and uses the USPS Intelligent Mail® barcode (IMb) for automation.
Want to Learn More About Presorting and Postage Discounts?
Presorting is an essential tactic for reducing postage rates. Transactional print and mail companies use it every day to ensure the best prices for their customers. Due to the volume needed and sophistication of sorting, you need a team that has expertise in this.
You can learn more by talking with our team today.
