Postage costs can quickly add up for businesses that send a high volume of mail. Implementing some cost-saving strategies can help businesses significantly reduce their postage spending. Here are some effective ways for companies to cut costs on postage.
Leverage Postal Discounts
The United States Postal Service (USPS) offers several discounts that can lead to major savings for high-volume business mailers. Taking advantage of presort discounts by sorting mail according to USPS requirements can reduce postage costs by up to 5%. Nonprofit organizations may qualify for reduced nonprofit postage rates. Other discounts are available for mailers who print barcodes, use USPS tracking services like Certified Mail Labels, or mail high volumes to a single address. Review all available USPS discounts to maximize postal savings.
Go Digital When Possible
Switching to digital communications can dramatically decrease postage costs. Email marketing campaigns, online invoices and statements use no postage. For customers who prefer paper communications, offer options to switch to digital-only. When physical mail is required, print documents double-sided to reduce the number of pages mailed. Provide digital options whenever available to cut back on mailed items.
Invest in Postage Meters
Using a postage meter instead of standard stamps can enable businesses to get commercial base pricing and qualify for USPS discounts. Postage meters that print information barcode mail also earn rebates from the Postal Service. Look for a meter that seamlessly integrates with accounting software to efficiently track and manage postage costs. Upfront investments in postage meters typically pay for themselves rather quickly through the postage savings they enable.
Right-Size Packaging
Oversized packaging results in wasted postage spend. Audit packaging and mailings to identify areas where right-sizing could reduce costs. For small items, evaluate if boxes could be replaced with padded envelopes. Use appropriately-sized packaging for the contents rather than defaulting to one standard package. Remove excess filler material and unnecessary inner boxes or packing. Scale down packaging to be as slim as possible while still protecting the contents.
Leverage Free USPS Materials
When sending large mailings, businesses can save on postage by using free shipping supplies from the Postal Service. Priority Mail supplies like boxes, tubes, and envelopes can be ordered for free on the USPS website. Take advantage of these free shipping materials instead of purchasing packaging. Just be sure to follow any USPS requirements for packaging use.
Consider a Mail Service Provider
Outsourcing mail services to a third-party provider is another potential cost-saver. Mail service providers can presort mail to maximize USPS discounts, right-size packaging, and offer lower rates through high-volume mailings. Weigh the costs of outsourcing vs. handling in-house for the potential savings.
Managing postage costs ultimately requires thoroughly reviewing current spend and identifying opportunities to streamline. Taking advantage of postal discounts, reducing mail volume, right-sizing packaging and leveraging free shipping supplies can add up to major savings. Businesses willing to implement cost-cutting postal strategies can see their bottom line improve. Carefully tracking postage expenses and costs over time allows businesses to see the impact of changes made and continue optimizing.
