Direct mailing initiatives can come with substantial costs. While mailing a single letter to a customer is inexpensive, compounding that value over tens of thousands of customers while remaining organized and efficient is a challenge.
This is where managed mailing services offer value to organizations that rely on direct mail marketing to generate, nurture, and close leads. When mail services form an important part of a company’s overall marketing strategy, finding ways to cut costs becomes more important than ever.
Deploying Economies of Scale for Direct Mailing Services
One of the key concepts driving value when it comes to direct mail marketing is economy of scale. Mailing services cost money, but mass mailing costs go down for those who can leverage technical economies of scale.
Direct mail services can cut costs the same way large manufacturing companies do so by purchasing more efficient equipment and wasting less per sale. When it comes to mass mailing, these savings add up and generate significant value.
There are many specific areas where implementing economies of scale can drive mass mailing value. Altogether, these can compound towards savings of more than 50%.
- Presorting Services. Presorting mail can generate savings of between 6% and 15%. If your company sends out more than 400 individual pieces of mail per day, presorting services can lead to postal discounts. Presorting allows mail service providers to categorize parcels according to the lowest possible rates.
- Mail Equipment Audits. Auditing mail equipment is a key step towards identifying opportunities to improve efficiency. Finding the right postage equipment is an excellent way to cut costs by removing time-consuming manual tasks from your overall mail processes. Many direct mail service providers will charge only a share of realized savings.
- Mail Management Software. Managing a small direct mail marketing campaign is challenging enough. Businesses that need to manage multiple high-volume campaigns can quickly find themselves overwhelmed. Cloud-based managed mail software can form a savings-oriented foundation for scalable growth.
- Every Door Direct Mail. The USPS offers Every Door Direct Mail (EDDM) service to new businesses looking for cost-efficient ways to distribute mail to individuals in a certain geographical location. It charges rock-bottom rates for mass mailing service to all residents within a defined area.
- Business Reply Account Optimization. Many organizations establish business reply accounts and then let them run on autopilot. This can end up costing much more than the value of the automated business reply system itself. Professional mail services providers can optimize business reply accounts to run at optimal cost-efficiency.
Take Advantage of Commercial USPS Rates
The USPS offers three rates to businesses sending Express and Priority mail parcels. Organizations that have an average yearly mail volume of between 5,000 and 75,000 parcels can cut their costs by up to 30%.
- Retail. This is the price that retail customers pay at the USPS counter. It is the highest rate.
- Commercial. Businesses that use a postage meter can earn up to 15% savings. The same goes for organizations using PC postage or USPS Click and Ship.
- Commercial Plus. Additional savings are available to businesses that can commit to specific monthly mail volumes. Commercial plus accounts combine output across multiple locations, making them available to large enterprises and institutions.
If you send out a large volume of mail regularly, you may qualify for one of the USPS’s commercial accounts. For some organizations, increasing volume may lead to reduced overall costs simply by qualifying for commercial rates.
Outsource Mailing to a Managed Service Provider
One of the easiest ways to guarantee access to commercial USPS rates and other economies of scale is signing a contract with a managed mailing services provider. Your mailing service provider will become the expeditor of all of your company mail, which allows the company to pass savings on to you while still earning a convenient margin for itself.
A managed mail provider that has already invested in the highest quality equipment can offer the best possible rates for labor-intensive variable data output. Manufacturers like Pitney Bowes, Formax, and Quadient offer solutions that can help reduce direct mail spend.
At the same time, it can leverage its relationship with USPS to earn the highest commercial discount possible. Those savings allow smaller companies to use direct mail marketing with the same infrastructure that large institutions enjoy.
Kelley Imaging enjoys profitable partnerships with all the direct mail industry’s most reputable companies. We offer unparalleled customer service alongside cutting-edge hardware and software solutions for meeting the needs of businesses that rely on direct mail services to generate leads.
Spend less on mass mailing initiatives and earn more from every customer you contact. Get in touch with a mail services expert to find out how!