Transforming your mailing operations for the better
5 ways to reduce cost by re-shaping your mail
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May 14, 2007 marked one of the most significant changes to the postal rate structure in the history of the USPS. Two months removed, many businesses are just starting to understand the impact these changes are having on their overall mail cost. With the USPS placing greater emphasis on shape as it relates to the cost of postage, the complexity of mail processing has increased for business mailers and it has put more pressure on accurately metering each mail piece.
To ease the burden of the new complex rate structure and help businesses become shape-based compliant, Neopost has provided solutions such as the SBP mail rate classification guide and the Dynamic Scale Automation System to help businesses better handle their mail flow without interruption. Now, many business mailers are looking for ways to control the rising cost of mail - so we have put together the top 5 ways business mailers can control their mailings costs by "Re-Shaping Mail".
Click on each numbered item for more information.
1. Convert flats to letters
One of the simplest, yet most overlooked ways to reduce postage costs is by folding flat size mail into letter size envelopes. This reduces the postage applied to each mail piece by nearly 50%! The reason many mailers overlook this opportunity to save is the fear of increased labor costs and lost productivity due to this extra step in the mail preparation process.
With a simple to use folding and inserting system, labor costs are no longer a concern and with built-in security features such and Double Document Detection and Optical Mark Recognition, improved document security and integrity make this solution an easy choice for nearly every business mailer. See the chart below to see how much you can save.
Current (Flat Envelope) |
|||
|---|---|---|---|
| Weight | Rate | Pieces | Cost |
| 1oz | 0.80 | 500 | $400 |
| 2oz | 0.97 | 200 | $194 |
Current Cost Per Month |
$594 | ||
Current Annual Cost |
$7,128 | ||
Re-shape (Letter Envelope) |
|||
|---|---|---|---|
| Weight | Rate | Pieces | Cost |
| 1oz | 0.41 | 500 | $205 |
| 2oz | 0.58 | 200 | $116 |
Re-shape Monthly Cost |
$321 | ||
Re-shape Annual Cost |
$3,852 | ||
Re-shape Annual Savings |
$3,276 | ||
Re-shape Monthly Savings |
$273 | ||
2. Reduce envelope page count
Reducing the number of pages that go into an envelope is much easier than it sounds. Here are two ways to reduce the number of pages you send without cutting down on the information you are trying to deliver. In fact, in many ways you will improve communications while saving on postage expenses.
- Duplex print. You will reduce page count by 50%, reducing the weight of each mail piece.
- Remove headers and footers on continuous pages and gain up to 40% letter space, further decreasing the number of pages needed for each document.
These are old concepts with renewed importance, which is why output management solutions are becoming a key component in every mailroom. Implementing output management solutions such as PrintMachine can be done seamlessly without making changes to your current IT systems giving you all the benefits without all the work.
3. Householding (Grouping like addresses)
Most businesses that have a high volume of mail going to the same customer database can benefit from grouping documents intended for the same recipient into one envelope. While this is a very straightforward concept, for many mailers the thought of time spent grouping & sorting statements by customer is a daunting and not very profitable task.
This is where PrintMachine comes in. By implementing a mail flow strategy and grouping mailings to the same recipients you can reduce your overall monthly spend significantly. If saving money is not enough, by presenting documents in a more readable and understandable format, you better communicate with customers which can improve overall customer satisfaction. That makes householding a critical component of any mail flow strategy.
4. Take advantage of rate class
While many things are changing at the post office, mail classification remains a constant. Mail classification is based on the content of the communication you are sending and has a major effect on the postage that is required to send a mail piece. This can be one of the most overlooked yet important areas of the mail flow process.
The effects of misclassification can mean as much as a 52% waste in postage expenses for business mailers sending standard mail at 1st class rates. With a little planning and a proper Addressing solution, you can pay less for each mail piece you send.
5. Maximize each ounce
Here is a way to send marketing communications for FREE! Every time a mail piece is sent with less than 3-pages the opportunity exists to include a marketing piece or other communication without additional postage costs. This is because a letter weighing .6 ounces costs the same to mail as one that weighs .9 ounces. The idea is to maximize each ounce of mail you send. This will work for 2 ounce and 3 ounce mail as well. Like all good ideas there is a catch. How do you know how much can be included and in which envelopes?
Two choices: weigh the contents of each envelope prior to filling the envelope, or use an automated solution such as PrintMachine in conjunction with a folding and inserting system to selectively include marketing information with envelopes that have room. This takes the burden off of manually processing mail and makes it automatic. Simply tell the system what to do and it does it!
Find out how Neopost Folder/Inserters' selective feed and PrintMachine's Dynamic enclosures features allow you to automatically insert mail pieces to selective mailings.
