The global economic downturn is creating significant business challenges that are expected to extend well into the rest of the year. One of these is managing the increasing cost of mail services. We are about to see another increase in postal services costs starting on May 15 when the cost of a first-class stamp will increase to 44 cents; postage for large envelopes will increase to 88 cents, and parcels will cost $1.22. Postcard stamps will go up to 28 cents, a one-cent increase.

Given all the other economic pressures companies are facing, adding any cost, even if incremental, can be daunting. The following mail management practices can help organizations save costs by increasing the efficiency of their operations. 

1. Contain Certified Mail Costs
Organizations can realize significant savings by using a Certificate of Mailing instead of Certified Mail. Businesses often use Certified Mail to verify that a mail piece has been sent. Using a Certificate of Mailing can accomplish this much more cost effectively, especially if verification of delivery or a return receipt are not required. For example, a company can save $3.82 for every one-ounce letter using a Certificate of Mailing.

2. Address for Success
Undeliverable addresses cost the USPS an estimated $2 billion per year; to businesses that can mean unpaid invoices, lost sales, and poor customer service. Accurate addresses are critical to the post office delivering mail to intended recipients and ensuring that postage costs will not be wasted on bad addresses. Also, the USPS launched a new intelligent barcode system last year. Creating automation-compatible mail pieces with proper address components will enable companies to maximize their postal discounts and reduce surcharges for non-compliant address content.

3. Automate and Save
Companies can save postage costs by making their mail “automation compatible,” which means preparing it according to USPS regulations that allow the mail to be sorted down to the finest possible detail for processing by automated equipment. Addressing requirements include using all capitals in the address, omitting all punctuation except the hyphen in the ZIP+4 code, and using the proper abbreviations for states. Other requirements include barcode clear zone, placement of the block address, and the required placement of the return address.

4. Pay Attention to Shape
Review designs of all current and planned mailings to ensure that they are cost-effective using shape-based pricing requirements. For example, a one-ounce 6”x 6” envelope’s aspect ratio (length divided by height) is 1.0. Since this does not fall within the required range of 1:3 to 2:5, the envelope is subject to a non-automation-compatible surcharge.

5. Determine IMB Discounts
If you’re considering a software upgrade to include Intelligent Mail® barcode (IMB) capability, contact a local USPS Mail Design Specialist to determine when IMB discounts will be available to your organization. This discount opportunity is currently targeted for fall of 2009.

6. Consider a Tracking System
To help ensure regulatory compliance, contain costs, and enhance efficiency, consider implementing an automated tracking software system to trace the status of your incoming and outgoing mail.

7. Minimize Costly Flats
Fold pages and insert them into smaller envelopes. For example, inserting nine pages into a 10”x13” flat envelope will cost $1.17 in postage. Folding the same nine pages and inserting them into a 6”x9.5” envelope will cost $.59 in postage, a 50 percent savings. (A 6”x 9.5” is .5 ounces lighter than a large envelope.) In addition to folding, duplex-printing documents (copying on both sides of the page rather than one side) before mailing can reduce postage costs by minimizing both the weight and thickness of the mail piece.

8. Compare Heavy Package Costs
Before mailing heavier packages (two pounds and up) via the USPS, double check rates with carriers such as UPS, Federal Express, and DHL to ensure that you’re obtaining the lowest rate. The price ultimately will depend on the zone to which you are shipping.

9. Check Your Software
If your organization is using address list software, you can visit http://www.ribbs.usps.gov to verify that all move updates (address correction and forwarding) and Federal Register notices are current in your application. This ensures that your company is in compliance and can benefit from discounted rates and faster service.

These are just several ways companies can streamline mail processes to shave unnecessary costs from their activities, steps that are all to necessary in this tough economic climate.

Joe Freeman, CMDSM, MQC, AQS; Business Solutions Architect
Océ Business Services

Océ Business Services is a leading provider of document process management and electronic discovery services.