Mail is one of the lifelines of your business, and depending on your industry, it can also be one of your biggest costs. That’s why it’s so important to figure out the most efficient, convenient, and economical ways to send mail. This chapter covers everything you need to know about mailing—from postage metering and sorting to letter-opening machines.
Mailing Equipment
There are many mailing machines you can buy on the market that can help you save valuable time—so you can spend it on more important things, like growing your business.
Postage Meters
Having your own postage meter saves a small business time and money. No more licking and sticking envelopes and stamps. With today’s electronic mailing machines, you don’t even have to stand in line at the post office to get your meter reset.
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The Click2Mail service offers a convenient way to create and send hard-copy mailings right from your PC. Simply place your order online at http://click2mail.com and have postcards, direct mail, fliers, marketing materials, invoices, or greeting cards delivered directly to your customers’ doors.
Electronic postage meters consist of a base machine through which envelopes are guided for stamping, which can be rented, leased, or bought from a mailing equipment manufacturer. The machine also has a meter, which must be leased from a U.S. Postal Service-approved mailing equipment manufacturer, such as Pitney Bowes, Neopost, or FP Mailing Solutions (which caters to small businesses and home offices); federal regulations prohibit the ownership of the actual meter, as that is strictly controlled by the USPS. The faster and more automated the machine, and the more features it incorporates, the more it costs to rent, lease, or own.
Even the smallest office can benefit from a meter to determine exact postage and print out a stamp, and a scale to weigh mail. The USPS estimates accurate weighing can save customers up to 20 percent on mailings.
An efficient, automated mailing machine can also save hours of time if you handle direct mail or large mailings. Mail that’s presorted and barcoded bypasses many of the post office handling steps and is delivered 24 hours sooner than mail lacking automated preparation, according to the USPS. That’s key these days when big online companies can offer free or cheap overnight shipping; and even same-day delivery.
The latest mailing systems are multifunctional, handling everything from printing, folding, stapling, inserting, sealing, labeling, weighing, and stamping to sorting, stacking, and putting on a wrapper or binder. Many interact with a computer so you can track exactly how, when, and to whom orders are sent out. They can also handle different-sized paper—checks, invoices, brochures—without stopping the machine to reset the equipment.
Change of Address
The postal service also offers online shipping setup, pre-printed labels you can simply print off your home printer, and free, pre-arranged pickups of packages and mail. The USPS can also help set up direct-mail campaigns through its small-business services. Visit www.usps.com/business for more information.
At the USPS website (www.usps.com), you’ll find dozens of time- and money-saving services, including a range of USPS and third-party shipping tools which can be used either online or via software that can be downloaded to your computer. Which shipping tool you choose depends on how many packages you ship per month. All are easy-to-use and put the USPS online tools at your fingertips so you can quickly pay for postage, create labels, and access shipping information, including rate calculations and delivery information.
There’s also a “rate calculator” that helps you find the most cost-effective method of mailing letters and packages. Just enter the article’s weight, plus zip codes of the origin and destination, and up pops the price for shipping it by various methods.
Want shipping supplies sent to your door? Click on “Mail & Ship,” then “Order Stamps & Supplies,” then “Shop Business” to order Express or Priority Mail envelopes, labels, boxes, and tags. Print online postage by going to USPS Click-N-Ship, or use another authorized provider, such as Stamps.com or Endicia.com.
Postal Scales
Besides postage meters, the second crucial piece of mailing equipment most businesses need is a postal scale. Scales are sold in 5-, 10-, 30-, 100-, 200-, and 250-pound capacities and can be purchased as stand-alone units or combined with a postage meter. A postal scale ensures that you’re not paying more than you need to for your outgoing mail. What to look for when buying? Both electronic and manual versions are available. Because manual scales require you to read the postage amount, they increase the chance of human error. Electronic scales are more expensive, but their digital readouts reduce errors and ensure you get the most value from your scale.
The Postage Meter Goes Online
The venerable postage meter has also gone virtual. Facing growing competition from virtual mail solutions the likes of Stamps.com, Endicia, eBay, and even the USPS, Pitney Bowes has beefed up its internet-based shipping service.
SendPro is the company’s online mailing and shipping tool. To ship letters and packages via USPS, UPS, FedEx and other major carriers, accounts range from $15 per month for an individual user to $30 per month for multiple users. Both options offer online access, an integrated scale and label printer, and the added benefit of postage savings over the USPS plus UPS discounts.
These tools integrate postage, package routing, shipping management, and reporting into a web app that can be accessed from any PC with a printer. With the interface, you can fill out online forms to track company shipping, create labels, print stamps, manage a sophisticated address book, and generate shipping reports. For more information, visit www.pitneybowes.com and click on “Mailing” then “Online Postage,” the “Send Pro.”
If you need your scale to interface with a postage meter, you’ll want to be sure the model you choose is compatible with your metering equipment.
Questions to ask the dealer:
What adjustments will need to be made to the scale if postage rates change? What charges are involved?
Does the scale offer alternative pricing options based on various postal classifications?
Does the scale have a password feature to help guard against unauthorized use?
What are its size and weight limitations?
How should the machine be maintained?
What type of maintenance agreement is offered?
Does the scale offer rates for foreign mailings?
Does the scale offer rates for FedEx and UPS?
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Presorting bulk mail saves money but takes time. Speed up the process by using mail consolidation companies—firms that presort mail and deliver it to bulk-mail centers around the country. To find such companies, look in the Yellow Pages or Google “Mailing Services.”
Letter-Folding Machines
When you are preparing for a promotional mailing, you may find yourself dealing with hundreds or thousands of letters or brochures. Folding letters yourself can be time-consuming; it’s also unnecessary, thanks to today’s letter-folding machines.
When buying a letter-folding machine, consider the volume the machine is capable of processing. Low-end equipment processes a few hundred pieces per hour; high-end equipment is capable of operating at speeds from 1,500 to 18,000 sheets per hour. Also, consider the types of fold the equipment can provide. Some of the possibilities are c-fold (standard letter), z-fold (accordion fold), double fold, single fold, right-angle fold, and brochure fold.
Such machines can cost as little as a few hundred dollars to thousands of dollars.
Letter-Opening Machines
Letter-opening machines can greatly speed up the opening of mail. Some can process up to 600 envelopes per minute.
Pushing the Envelope
Looking for ways to prune postal bloat? The Direct Marketing Association offers this checklist of cost-cutting ideas:
1. Fine-tune your mailing list.
Stop mailing to duplicate names.
Eliminate nonresponders and marginal prospects. There are many mailing list software programs that can help you keep your mailing lists current.
2. Be sure you’re using accurate addresses.
Check for correct zip codes, especially when using addresses supplied by customers.
Watch for mail shipped to the wrong suite or apartment numbers.
Check for missing directionals, such as “N.” for “North.”
3. Take advantage of postal discounts and services.
Use the USPS National Change of Address (www.nationalchangeofaddress.com) list to keep your mailing list current.
Print “Address Correction Requested” on the face of your mail. The USPS will tell you if the recipient files a change of address.
Investigate commingling your mail with that of other small mailers to take advantage of discounts available to large mailers. Contact your local mailing service for more information.
Print your bar-coded ZIP+4 on business reply mail. The USPS charges much less for mail using the nine-digit zips.
Stockpile mail to build up larger volumes.
What should you look for when buying? There are two types of letter openers: chadders and slitters. Chadders open envelopes by cutting one-eighth of an inch from the end. Slitters, while quite a bit more expensive than chadders, cut through the top seam of the envelope and reduce the risk of damaging the contents.
Most models can handle standard #10 envelopes. More expensive models will accommodate different sizes and thicknesses of incoming mail. An automated feeder will send your mail through the machine; joggers will help settle the contents of the envelope so they don’t get cut; counters let you count the number of pieces being processed.
“In the realm of ideas, everything depends on enthusiasm . . . in the real world all rests on perseverance.”
—JOHANN WOLFGANG VON GOETHE, AUTHOR
Another feature you may find helpful is an automatic date-and-time stamp to help you keep track of when mail arrives. Because letter openers are usually quite reliable, maintenance contracts are usually not required.
Questions to ask the dealer:
Does the opener use a chadder or a slitter?
What sizes of envelopes can the machine handle?
Does it have an automatic feeder? A jogger? A counter?
Can incoming mail be time- and date-stamped?
Mail Labelers
Mail labelers quickly affix mailing labels with the use of a hand-held dispenser, desktop model, or heavy-duty floor model, depending on the need for speed and the use of other attachments, such as a tabber, folder, or inserter. They can attach labels to many different types of mail pieces, including postcards, envelopes, catalogs, brochures, sales fliers, and other marketing pieces. Additional features may include the option to use folded label sheets (approximately 30 labels per page) or continuous-feed single label rolls, counters, and different label sizes. If attaching labels using a hand dispenser, the speed will depend on the individual using the device; however, automated labelers can stick on as many as 15,000 labels an hour.
Lease or Buy?
Most of the mailing equipment in this chapter can be rented, leased, or purchased outright. You may prefer to lease to conserve working capital, then upgrade equipment as your business grows. Renting is the easiest method because if you need to cut costs at any time, you simply hand the equipment back and walk away. If you are leasing, you are obligated to make all the payments specified in the lease. However, leasing offers advantages, including lower rates than renting and the ability to roll the lease over for upgraded equipment.
If a mailing equipment salesperson sells you on leased equipment that ends up being too sophisticated for your needs, some suppliers will purchase the competitor’s lease and give you their own equipment. When shopping around for equipment, ask if there are any special promotions available before you sign.
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Unsure where to start when you need to send a package or overnight letter? iShip.com (http://iship.com) will provide you with easy shipping solutions all from your computer. You can compare rates, print labels, order supplies, monitor tracking logs, edit address books, and manage reports conveniently without leaving the office.
Basic machines lease from about $30 to $50 per month; more sophisticated machines lease for $65 and up. Anything more expensive than that is usually best suited to large corporations. The average lease is for three to five years and can include maintenance and free postage refills; the average rental agreement is for one year. Some companies allow you to upgrade within the timeframe of your rental or lease. Be sure to ask about upgrade penalties.
Carefully read all contracts, and if renting, make sure there is no mention of the word “lease.” Also, ask what options you have if you need to get out of a lease. And make sure the company is postal-certified with the USPS.
When shopping for mailing equipment, the right mailing equipment can save you money but only if you give the salesperson enough time to analyze your needs.