Seven (Plus One) Tips to Combat Increasing Postage Prices
As prices continue to increase, it’s more important than ever to get more from every mailpiece. With postage now the most expensive part of any mailing project and postage rates on the rise this July, it’s more important than ever to keep costs in check.
Following our recent article (and complementing price chart) discussing the Market Dominant price increases taking effect on July 14, 2024, we’d like to look at a few ways to mitigate costs, find discounts and increase ROI.
From embracing automation and Full-Service Intelligent Mail Barcodes to taking advantage of incentives, here are just a few ways to keep rising postage costs in check. And be sure to check out part three discussing the many Promotions & Incentives on the horizon in 2025.
Automation above All
Defined as “a price category for mail that is presorted and prebarcoded and that meets addressing, readability, and other requirements for mail that can be processed on automated equipment,” Automation remains the most affordable way to send First-Class and Marketing Mail.
Why? It’s simple. If the USPS has to spend less time processing, routing, and planning delivery of your mailpieces, you’re going to pay less.
Many of the below topics will highlight how to retain or get more from “automation pricing,” but consider automation as the North Star in your direct mail initiative.
Full-Service IMb Is Your Friend
In our July 2024 Postage Rates PDF, you’ll see an asterisk in many places stating, “Subtract $0.005 for each automation letter/flat that complies with the full-service Intelligent Mail option requirements.”
This is important. Why? This discount was increased 60% in the July rate increases.
Formerly $0.003 per piece, the $0.005 discount for using Full-Service barcodes isn’t just a fiscally sound one, it’s one that can offer a variety of other benefits.
Full-Service Intelligent Mail is a smarter way to mail, and offers mailers elimination of permit fees, free address correction, and better visibility into your mailings.
Get Your Designs in Order
Good design makes for good ROI. But it’s not simply whether a mailpiece is destined for the refrigerator or the recycle bin. No matter how good a mailpiece’s recall or response rate, if it runs afoul of the Domestic Mail Manual, the costs will outweigh the benefits.
A bad flat can become a parcel. One mistake on a First-Class letter could go from Automation to “Nonautomation Nonmachinable.” Nonprofit Marketing Mail that fails to meet identification requirements could simply become Marketing Mail.
Each design mistake listed above could double postage costs. The appeals and rectification process is not simple. And if you successfully appeal a design decision, money doesn’t magically reappear. If you have any questions on a current design or appeal, we may be able to help.
And if you’re looking for advice on how to design for increased response rates, check out this interactive presentation.
Stop Wasting Money on Undeliverable Mail
Did you know that every year, mailers spend billions of dollars on mail that gets shredded or returned? Known as Undeliverable as Addressed Mail, it’s a drain on the postal system and mailer budgets alike. Whatever the class, whatever the product, failure to keep addresses updated can cost you.
There are easy ways and important motivations to fix your UAA. From understanding why it happens to following pre- and post-mail address correction, good hygiene matters. And we discussed all of this in an ongoing series on UAA stats, causes, and fixes:
Part 1 highlights the causes of UAA mail and looks at some mind-blowing statistics on just how big of a problem it is.
Part 2 will look at the history of the Move Update Standard and explores why failure to comply can be costly.
Part 3 will explore the many, many options mailers have to practice good, Move Update compliant data hygiene both before and after mailing.
Leverage Promotions & Discounts
Promotions and discounts are often overlooked opportunities to not only save money, but to drive meaningful engagement. And every year, the USPS offers a wide range of these to mailers.
With current and upcoming promotions in 2024 including discounts for emerging technology, Informed Delivery campaigns, Retargeting, and more, there’s always an opportunity to save some money while increasing engagement.
Need more tips? Be sure to follow us on LinkedIn and subscribe to our newsletter. In the next few weeks, we’ll be discussing 2025 Promotions and breaking down each of the remaining promotions in 2024.
2025 USPS Promotions & Incentives Preview | Downloadable Calendar
2025 USPS Promotions & Incentives: Integrated Technology
2025 USPS Promotions & Incentives: Tactile, Sensory, & Interactive
2025 USPS Promotions & Incentives: Reply Mail IMbA
2025 USPS Promotions & Incentives: First-Class Mail Advertising
2025 USPS Promotions & Incentives: Continuous Contact
Don’t Ignore the Potential Mail Growth Incentive
Though nothing is finalized, rumors of a potential Mail Growth Incentive for 2025 have been swirling in postal circles. It’s more likely than not that this will be happening, and for good reason—it benefits all entities involved. With roughly 2 billion First-Class and Marketing Mail pieces estimated to be eligible for the incentive in 2024, those who have taken advantage serve to gain.
If anything like the 2024 Mail Growth Incentives, mailers who exceed their FY 2024 (October 2023-September 2024) baseline would be eligible for postage credits on all pieces exceeding said baseline.
Again, nothing is finalized and registration for 2024 is closed, but it’s worth keeping this on your radar.
Stay Ahead of the Network Redesign
One of the big promises of Delivering for America is the promise of a significant network redesign. And the discount format is already encouraging mailers to embrace different entry points than before.
According to Kathleen J. Siviter’s article in Mailing Systems Technology,
“[The USPS is] developing and increasing incentives to containerize mail in ways that make it easier for USPS to cross-dock containers at facilities when processing will be performed in a different facility. The USPS is increasing the SCF pallet discount for qualifying Marketing Mail flats prepared on ADC, three-digit and five-digit SCF pallets, as well as increasing other containerization discounts for Carrier Route Marketing Mail.”
Simply put, the best way to get bigger discounts is to fit into where the system will be—or work with a Mail Service Provider who can make your life easier. Though there will be a slight change in service levels, good planning around print and delivery dates can facilitate on-time delivery.
Bonus: Work with a Mail Service Provider Who Makes Your Life Easy
At Sepire, we’ve built our business on making our clients’ lives easier. From our job creation and reporting solution to the work we do to keep postage costs under control, we’re here for you.
Built for compliance and flexible enough to handle jobs big and small, we can help you create meaningful connections at an affordable price. Get to know more about who we are and how we help, and when you’re ready to get more from your mail, contact us here.