Don’t get Rooked: How to pay less for Postage

Every day someone asks me if I know strategies and techniques to reduce postage. And yes, I do. Lots of them.

But no, there is no “one solution fits all” answer. Getting a mailer to the optimal postage rate (please note I didn’t say “lowest!” rate—the highest rate may really be your lowest cost) is like playing three-dimensional chess.

A chess board is a simple black and red checkerboard pattern. It’s how you move those pieces to get to your goal that makes the game challenging.

Using postage regulations to your advantage is like playing that chess game.

To give you a strategy that will work for you (and generate an accurate postage estimate), I have to weigh your package size, weight and thickness; the distribution of your mailing list; the quantity you want to mail; and the delivery date you’ve got to have. I need to know if you are a for-profit, a non-profit, or running for elective office, as different rules and strategies apply.

Remember: Some chess pieces can move one square in any direction; some move only diagonally. Knowing which to move and when to move wins or loses games.

For instance, in Standard mail there are 27 postage rates for a letter. Even First Class Presort has 5 rates for that same letter. Throw in lumpy mail, thick mail, non-flexible mail, postcards and periodicals and you can see just how many variables I have to measure to get to your answer.

There’s one thing that is not variable, though. Unless you’re mailing a gold-leafed invitation wrapped around an original photograph by Annie Liebowitz, addressed with calligraphy by Zhang Dawo, postage will probably be the most expensive aspect of your direct marketing.

While every technique will not work for everybody—remember, a pawn and a rook can’t move the same way—here are 10 Tips to help you reduce that not inconsiderable postage outlay:

1. Clean your data. For every bad address you get off your datafile, you’ll save printing and postage. You’ll also increase your response rate, but that’s a different story. Data cleaning starts with NCOA, then goes into internal de-duping (look for identical names and identical addresses), running it against deceased data.

If you have the time and will be mailing multiple times, consider getting ACS—Address Correction Service. It will take you several weeks to apply, but will mean that we can use intelligent barcodes for you in the future (that’s another story, too) so you can track your mail in the postage system, AND you’ll be able to electronically get back corrected addresses for FREE.

2. Presort. You’ll save about .10 per letter at First Class Presort rates and twice that at Standard and about 30 cents per letter at Non-Profit rates. Yes, you can have a live stamp in any of these classes.

Of course, we have to NCOA (run your data through National Change of Address software) then presort, and sort/tie/tray, so some of your advantage will be eaten up with post office-required processing steps.

At small quantities—and that depends on the piece you are mailing and the destination address—presorting can actually cost you more than if you mailed straight First Class. Be sure you know the ins and outs of the postal regs before you reflexively say “Standard!”

Standard is not always cheaper and it is almost always slower. Unless you’re running for political office, in which case I’d suggest you mail at Standard Red Tag Political rate. You’ll get Standard postage rates but First Class delivery.

3. Mail Smaller. Flats—pieces larger than 6-1/8 x 11-1/2” cost more to mail. Of course, they stand out in the mailbox, so they have more visible. But that visibility has a price.

Postcards can be as small as 3.5x5 or as large as 6x11. Depending on the size of your postcard, the distribution of your list, and the needs to get it delivered fast, you may do better mailing at First Class, First Class Presort or Standard. Ask us to do an analysis for you.

4. Mail lighter. Keep your mail below 1 ounce in weight if you are mailing at First Class or First Class Presort. If you opt to mail at Standard or Non-Profit rates, you can mail 3.3 ounces for the basic rates. Hence, if you know your mailing piece is a heavyweight, reconsider mailing at First Class.

And of course, if lower postage is your thing, keep your piece thinner than ¼ inch.

5. Mail more. Higher mail volumes typically can reduce per-piece production—and often postage—costs. But not always. It depends on the distribution of your list.

6. Mail in highly concentrated areas. It’s easier for the post office to deliver mail that is highly concentrated; they reward mailers with lower postage rates. The optimal low rate is CRRT—Carrier Route—where the carrier delivers one piece to every address on his route.

7. Be sure your mail is automation compatible. Mail that is too stiff (or not stiff enough) or “lumpy” or square or outside aspect ratio rules or too highly reflective or with insufficient contrast between address and background or otherwise non-machineable will cost you money. Not sure about your mailing? Call us! We will help you figure it out :)

8. Be sure your mailing panel meets USPS requirements. The USPS just changed addressing requirements for self-mailers, newsletters and flats. Put the address panel in the wrong orientation and you’ll pay 10 cents more in postage. Be sure to check USPS design and folding requirements before you put ink to paper.

9. Comingle. If you’re mailing more than 25,000 pieces at a presort rate (ie First Class Presort, Standard or Non-Profit) you may find that using a comingler can save you postage.

10. Dropship. Mail going to a single, specific destination can often save time and $$ by being dropshipped to the delivery point SCF or BMC.

It works this way: We prepare the mail. We then take it to the postal facility where it is entered into the mailstream. But instead of being released into the mailstream at that point, it is put back on our truck with paperwork that says the postage has been paid and the mail passed postal inspection. We then drive the mail (or hire a long distance trucker to drive the mail) to the destination SCF or BMC. The savings per piece: approximately 4.3 cents. Hence, to save on postage, the cost of the shipping must be less than the postal savings.

It’s not just about postal savings, however. Dropshipping can cut a week or more off delivery time—even as it is saving $$. If time and $$ are both important to you, then you should be discussing dropshipping with us.

Like chess, minimizing postage is a game of strategy and nuance. Knowing these 10 tips will put you way ahead of your competition, but be sure to check with your local Mailing Requirements office and/or us for details specific to your own project.

Finally, work with us! We have your interests and needs in mind. We will help you make the right financial decision for your specific project.

And if someone tells you that the job can print and mail for less than the cost of published postage rates, run for the door. They are not your friend. They have you in Checkmate and you don’t know it yet.

No Postal Increase In 2010

Hot News!

Launch the balloons…pop the corks…give your BFF a sincere fist bump.

The USPS announced late last week that there would be no postal increase for “market dominant products” in 2010.

Mailers everywhere should be celebrating. First Class, Standard, Non-Profit, Periodicals and Single-Piece Parcel Post rates are all on the sacrosanct “do not touch” list.

USPS management is still weighing options on “competitive products” like Priority Mail, Express Mail, Parcel Select and most international mail; they hope to have an announcement on these classes/products in mid-November.

This postage price freeze is the best news direct mail marketing has heard in quite a while. In a year that saw dramatic mail volume declines due to the most miserable economy since 1929, widely reported housing foreclosures, rampant retail failures, and general market skittishness, the USPS lost a huge amount of money. Yet clearheaded USPS management realized that to increase postage would only drive more people out of the mail.

So USPS management did a gut check, and decided that inflicting pain on themselves today would mean more mail and less pain in the years ahead. And they were spot on with that counter-intuitive decision. Let the bubbly flow.

But wait! Now I get truly “inside the Beltway.” If you’re not a policy wonk, stop reading right here, and start celebrating. You’ve been warned.

Of course, the story behind the story is a bit more complex. Postal increases are now tied by law to the CPI—Consumer Price Index. Whatever the CPI does in a year (and it has historically gone UP each year) is what the postal system can increase postage rates by.

No one on Capitol Hill foresaw a situation where the CPI would go into deflation mode. But that is exactly what has happened in 2009. The CPI has actually dropped by 4.3%.

No one at the Post Office or on Capitol Hill could conceive of a situation where the USPS would (or could!) reduce rates by 4.3%. The system is simply not geared for deflation—an historical anomaly.

So USPS did the next best thing: it announced 3 months early that it was not going to raise rates.

USPS looks like a hero, but in reality they are pocketing that 4.3%.

If the CPI is to be believed, the USPS—as well as you and I—are now paying 4.3% less for gasoline, 4.3% less for clothing, 4.3% less for vehicle maintenance, 4.3% less for utilities, etc than we did the year before. So even though USPS management has decided not to raise prices, they are still ahead by 4.3%.

Got it? A brilliant decision, mandated by the times and economy, maintaining the status quo on postage rates was a PR coup—and a long-awaited win/win for the Post Office.

OK, the Post Office deserves a win every once in a while. And so do mailers.

Let’s drink a collective toast of that uncorked bubbly. Cheers to the USPS for its maybe not-so-difficult, but imminently practical (and correct!) decision.

Thank you, USPS.

Now if I could only find out where my 4.3% has gone missing…

Why is Postage such a Puzzle?

We’ve got a problem. You say you want to mail using Standard postage because it is the lowest rate. And you want to know what your postage will be.

A simple question, yes? Not hardly. Here is what I know that you probably don’t:

While it's true that Standard is usually (but not always!) the lowest postage rate, you need to know that there are 27 different basic rates for your mailing. And that’s if you’re a for-profit company!

If you're mailing non-profit, there are another 27 basic rates for the same piece.

If you’re mailing at carrier route prices (a subdivision of standard mail) you’ve got another 12 rate categories. So that’s a potential 39 rates for your one mailing. Was yours a simple question? No, indeed!

When you ask me what your postage will be, I’m weighing options. I know your postage could range from as little as .137 cents to as much as .343 cents each for for-profits and from .066 to .245 for non-profits.

But what do I tell you? You want a single, concise answer.

Even more confusing, I also know that on any given mailing, there can be up to 16 different postage rates, depending on the distribution of your mailing list. Some of the pieces will mail at this rate; some of the pieces will mail at that rate. It depends on your data.

But what do I tell you? You want a “bottom line” number. Skip the explanation.

Here’s more of what you don’t want to hear: Your postage depends on the distribution of your mailing list, as well as the size/weight/thickness of the mailing piece, how it is folded, how it is designed, where you are mailing to and where you are mailing from. There are rules about aspect ratio, flexibility, contrast and "graphic noise" that also affect your postage.

So you see, there is no simple, straightforward answer.

When you ask me to quote postage, I really can’t be specific. That’s why our quotes say ESTIMATED postage when they mention postage at all. Because it is truly that: our best guess estimate. Until we get your materials and your data in our hands to do the analysis the post office requires, we can’t be sure.

If you’re giving me the list you want to use, I am at an even greater disadvantage. You know your data; I don’t. Yet you are asking me to tell you what your postage will be.

All that information is running through my mind when you ask me what your postage will cost. And that’s just if you want to mail Standard or Non-Profit. Depending on your mailing, we may suggest that you mail First Class. It’s counterintuitive, but sometimes using First Class actually saves money!

It all depends.

With the USPS there really is no simple, straightforward answer. It takes a lot of questions—and just as many answers—to analyze your specific situation and develop a mailing strategy for you that will minimize your postage investment while still getting you the delivery date you need.

We may not be able to quote you a firm number for your spreadsheet, but we can help you negotiate the postal labyrinth to ensure you've got the best possible postage rates for your mailing.

Please let us know when we can help.

43670 Trade Center Place, Suite 150, Dulles, VA 20166

Phone: 703.996.0800 Fax: 703.996.0888

www.paulandpartners.net travis.boaz@paulandpartners

USPS changes the rules for Carrier Routing

This may seem like minutiae as Carrier Routes (CRRT's) are the smallest denomination of USPS service. But if you mail at CRRT rates, this is truly important stuff. It directly affects your wallet. And yes, this change is absolutely related to the flats processing changes mentioned above. Here’s how…

The USPS is bleeding money. As a result, they want 150,000 employees to take early retirement thus saving an estimated $100 million a year.

One of the most laborious processes is having carriers manually sort their mail each day before they take to the road. Some days the sortation problem is so severe carriers don’t hit the streets until noon, and don’t get back to their stations until well after dark. That means delayed deliveries and a lot of overtime pay.

Mail carriers sort flats (ie larger pieces of mail—see the proceeding article) and use the flats to enwrap individual letters, postcards and smaller pieces for each delivery address. Having addresses in a uniform position on flats helps speed the sortation process. Hence the flats processing changes outlined in the previous article.

The resulting corollary is that since mail carriers can sort their mail faster, they can get on the road earlier and reach more addresses in a single day. Since carrier routes (CRRTs) are what one carrier can deliver in one day, the USPS wants to revamp the system to take advantage of the new efficiencies.

Here’s a hypothetical example. Assume there are three adjoining CRRTs, each with 200 addresses. Because of the new processing efficiencies, the USPS can turn those 600 addresses into two carrier routes, each with 300 addresses.

The result: one letter carrier is off the payroll, the USPS saves his salary, his vehicle maintenance costs, and delivery doesn’t suffer.

Theoretically.

More than 8000 carrier routes around the US are being redrawn, and the Washington area is in the throes of the reorganization even as I type.

The routing changes are being introduced now, but become mandatory within weeks. Hence, if you’ve got a CRRT mailing planned in the near future, let Paul & Partners know. We need to know what you’re planning so we can get the data that is appropriate for you and your mailing schedule.
Timing is everything. The penalty for non-compliance is, of course, paying more postage. Miss the transition date and pay at least 4.2 cents more per letter for your entire mailing. The penalty for flats is even more punitive.

Got questions and need answers? Call Paul & Partners. We’ll help you avoid CRRT trouble. Call us at 703-996-0800 to discuss.

See Related Article: USPS changes the rules on addressing oversized mail

USPS changes the rules on addressing oversized mail

It’s been almost two whole months since the post office made any major changes, so I guess it’s overdue. But this one is a biggie. Literally.

If you’re mailing—or even thinking of mailing—a flat in the near future, you need to know that the new rules will probably impact on your design. Worse yet, if you don’t play the game by the USPS’s rules, your postage will escalate because you’ll sacrifice automation discounts.

Pause for a breath as you ponder the possibilities.

Ready to proceed? We’ll take it slow.

What’s a “flat”? Mail that is larger than 6-1/8” x 11.5” but not exceeding 12” x 15” is called a “flat.” I’m sure there must be some historic reason for this odd name, but I don’t know it. Ideas, anyone?

What’s the change? The location of the address block will hence forward be at the top of the mail piece. Currently most mailers put the address block at the bottom. (Think of your Time Magazine.) The new regs say you can put the address on either the front or the back (more on this critical point later), but the address cannot read upside down and must be within the top half of the mailpiece.

If your design calls for the address block at the bottom, you’re in trouble—unless you’re mailing this week. Which brings up…

When does the change take effect? This Sunday, March 29th.

What classes of mail are affected? First Class Presort, periodicals, standard mail, bound printed matter, media mail and Library rate mail sent at automation, presorted or carrier route price levels.

That just about covers the gamut, I think.

Have I lost you yet? Here are the details:

Self-mailers (ie pieces mailing without envelopes, like magazines, newspapers, annual reports and newsletters). The post office considers the spine to be the leading edge. The spine is the side with saddlestitches (staples) or folds. That’s why you can put the address on either the front or the back—it depends on where your spine is!

Hold your piece so the spine is on the right, in the “leading edge” position. The address block must be at the top. The address may be horizontal (ie parallel to the top edge) or vertical to the top edge. Vertical addresses can read left or right, and may cross the midpoint only if the address area begins or ends within 1” of the top edge. Address blocks parallel to the top edge cannot read upside down.

Envelopes. Horizontal format (ie booklet envelope) is acceptable, but the “top” is defined as the left or right side edge. Only a bureaucracy could call a side the “top” but anyway, the address must be fully on the left or the right of an imaginary midpoint line. So if you’re mailing a 9x12 booklet envelope, the “top” is the 9” side; and the midpoint is 6” from the left and right edges.

Got it?

What to know more details? OK, you asked for it…

Type must be at least 8-point. Barcodes need at least 4”.And the USPS prefers sans-serif fonts like Arial or Helvetica in ALL CAPITAL LETTERS.

Don’t worry, Paul&Partners will take care of the last three points when you mail with us, if you give us the space to work with. Be sure you allow for an area where we can put an address without obliterating your critical art. And be sure to block out a white area for your barcode. If it is too late in your design process to make changes at this time, we’ll create labels and affix them in the required spot. So all is not lost.

However, if you do have time, rally your art department. They need to know that the rules which have been in effect since the flood are null and void in just 5 days.

Remember the threat about losing your automation discount if you don’t conform and comply? That’s post office speak for play with our rules or pay more. Maybe a lot more.

On standard flats, you could see your 5-digit mail increase by 2.7 cents each; and your 3-digit mail increase by over 5 cents apiece.

And it only gets worse.

Are you still with me? Eyes glazing over yet? Need help in deciphering what this change means to you?

Call Paul&Partners and we’ll help you figure it all out. 703-996-0800.

Direct Mail 101 - So what is an NCOA file?

NCOA files are maintained by the Post Office. (Remember the last time you moved? Remember that yellow Post Office form you filled out with your old and new address? You intended the postal service to forward your Time Magazine properly, right? Well, they did forward your Time Magazine to you, but they also put your addresses—both old and new—into a database. And then they made that database available to mailers to confirm address accuracy.)

Upon running your housefile through the NCOA process, you are awarded a certificate. That certificate allows you to mail First Class Presort, Standard Presort, or Nonprofit Presort (NCOA certification no older than 90 days is required for all presort categories of mail) should you wish. It also shows the Post Office that you are concerned about list hygiene and doing your part to keep your list clean. Call it “good will” if you wish. More practically, it updates your file and reduces your outlay for non-deliverable packages. NCOA certification is valid for 90 days.

Upsides: It’s fast: an expedited NOCA can happen in a couple of hours. And it’s cheap. NCOA processing will also catch incomplete addresses (i.e. missing apartment/suite numbers) or mismatches between states and zips, or incorrect addresses (no such street number). It will tell you if someone has moved, and if so what their new address is. It will tell you if someone has moved overseas (no luck on that address, though). And it will tell you if the person is gone with no forwarding address (best to check Heavenly Acres for current residence status). So you can fix your list and get in the mail faster with cleaner information. That means more positive results faster.

Downsides: Did your recipient fill out his/her yellow moving form legibly? If the input keypuncher can’t read it, the entry may be wrong in the database. Mail could be misdirected. So there is a small element of human error involved. And about those incomplete or incorrect addresses: NCOA processing probably can’t fix them for you. It can pinpoint problems, but you have to make the fix later.

Also, an NCOA of a company file can not pinpoint if your specific recipient is still employed in his/her position; it can only tell you if the company address is still viable.

Bottom line: For speed, accuracy, cost and getting your corrected information back in a timely fashion, no other list cleaning technique equals an NCOA.

Direct mail marketing is tough enough. Mailing to people who no longer live where you think they live only makes it harder and more expensive.

Make it easier on yourself—and your organization’s pocketbook. Keep your data clean, eliminate duplicates and kill the “deadwood.” But get a professional like Paul & Partners to guide you. Professional help costs nothing more than the NCOA fee. But get that NCOA done. You’ll be surprised at how much your return rates will improve on your next mailing! Best yet: your boss will think you’re a genius.

Now that’s a win-win!

43670 Trade Center Place, Suite 150, Dulles, VA 20166
Phone: 703.996.0800 Fax: 703.996.0888
http://www.paulandpartners.net/ travis.boaz@paulandpartners

Our Services Include: mailing services, bulk mailing services, direct mailing service, printing and mailing services, mass mailing services, buy mailing lists, mailing lists, buy mailing list, mailing list service, mailing list, direct mail mailing list, direct mail post cards, direct mail house, direct mail programs, direct mail printers, direct mail solutions, direct mail cost, direct mail advertising services, direct mail post card, direct mail marketing services, direct mail companies, direct mail postcards, direct mail advertising, direct mail marketing, direct mail

Stamp? Meter? Indicia? A Primer on Postage

Since we seem to have a theme going about envelopes and postage, here's what you need to know about affixing that postage on those envelopes.

There are 3 ways to affix postage. You've got to use one of them to get your piece in the mail. No exceptions. The USPS doesn't take IOU's.

Having said that, beauty is in the eye of the beholder. Here's why:

Indicias--that little black box printed directly on an envelope in lieu of a stamp or meter--are hugely popular. They are also the cheapest form of affixing postage as they can be printed on the piece instead of being affixed in another pass later.

But they are not right for every application.

They scream mass mail if you're mailing a letter package. They are impersonal and don't make you feel warm and fuzzy about the person/organization that sent the mail to you.

If, however, you're mailing a postcard, newsletter or "self mailer" then an indicia is clearly the best way to go as affixing a stamp or meter makes you look chintzy and do-it-yourself penny ante. On these types of mailings an indicia makes your mailing look more professional.

All my comments after this point assume you're mailing a letter package, which have different "rules" than postcards, newsletters and self-mailers.

Meters--you know, that Pitney Bowes thingy that's been around for years. Meters are what you would use if you wanted your letter to look like it came from a business.

The USPS has just introduced new meter regulations that allow greater variety in the meter marks--you can even get customized meter marks, for a price.

On an envelope, metered mail gets opened faster than indicia'd mail. So if you were concerned about what postage technology you should use, this would be a consideration.

But wait! It gets even better.

Postage wisdom--and years of actual statistical data--say that Stamps outpull indicias and meters. By "outpull" we mean that tests have shown letters with stamps get opened before metered mail, and metered mail gets opened before indicias. (Remember, these rules do not apply to postcards, newsletters and self-mailers.)

Stamps come in two varieties. Lick 'em stick 'em and pressure sensitive.

Lick 'em and stick 'em stamps are activated by water. This is the technology that your father used to mail his electric bill each month. Newer technology is pressure sensitive or sticky back.

Every class of mail (First, First Class Presort, Standard, Non-Profit) has at least one stamp that is appropriate to that class. So yes, we can mail your job and have a "live" stamp on it.

At any given time, the USPS can have special stamps (think Fat Elvis or Love stamps) that are appropriate for First Class and one or two stamps appropriate for each presorted class.

We could go on an on about hand affixing stamps…using multiple stamps…overprinting stamps with mailer's cancellation marks and any number of other postal strategies that may help your mailing get noticed and opened.

If you want to know more, call us at 703-996-0800 and ask for Ellen.