How to Save Money on Postage: Understand the Cost Savings of Machinable Mail

Machinable MailWe’re back with the third installment of our “How to Save Money on Postage” blog series. Thus far, we have explained how to save money by being well-informed when choosing between using First Class or Standard Mail and the difference between machinable mail and automation. Now it’s time for a quick recap and a look at some figures that will show where a lot of profit can be gleaned from if you choose the best delivery method and design your mail pieces accordingly.

Leave Automation Out of This

You already know how designing a direct mail piece sans bar code renders it ineligible for automation rates, and that the USPS is very good about passing the savings that easier processing affords on to the customers who do so. For now, let’s leave automation out of the discussion and instead focus solely on the difference between machinable and non-machinable mail.

 The Rate Difference is Astronomical

Let’s look at the comparison between two different sets of machinable and non-machinable rates. The difference is staggering.

Number of mail pieces Cost for machinable DNDC mixed AADC ($.275) Cost for non-machinable DNDC mixed ADC ($.630 each) Cost difference
1,000 $275 $630 $355
5,000 $1,375 $3,150 $1,775
10,000 $2,750 $6,300 $3,550

The same holds true with First Class Mail (not to exceed 2 oz.)

Number of mail pieces First class presorted machinable rate non bar coded ($.460 each) First class presorted non machinable rate ($.668 each) Cost difference
1,000 $460 $668 $208
5,000 $2,300 $3,340 $1,040
10,000 $4,600 $6,680 $2,080

 

As shown on the above charts, the standard rate non-machinable, is more than double the standard rate machinable.  In the comparison of the First Class rate, the non-machinable rate is approximately 45% higher than the machinable rate.  The bottom line is simple, by designing your mail piece to meet USPS machinable criteria, the postage savings are considerable.  Stay tuned for the wrap up of this blog series and check regularly to see what profit boosting topics will be forthcoming.

LOOK FOR OUR NEXT BLOG:
Part Four: Taking Advantage of the DDU

Eric Weisgarber

Eric Weisgarber is the founder and President of Allegiant Marketing Group, Inc. His calling is helping business professionals grow their gross profits, net profits, and cash-flow through through marketing services, systems implementation and consulting. His business calling is aligned with his life\’s purpose – developing people and serving the community through discipleship.

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