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The Main Event – PC Postage vs Postage Meters_Webinar Presentation

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Adam Lewenberg, President of Postal Advocate Inc. compares the differences between PC Postage and Mailing Systems (Postage Meters) so you can determine which solution is a better fit for your organization.

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The Main Event – PC Postage vs Postage Meters_Webinar Presentation

  1. 1. The Main Event – PC Postage vs Postage Meters Presented by Postal Advocate Inc. May 17, 2017
  2. 2. Adam Lewenberg - Background and Experience • President of Postal Advocate Inc. – The only mail audit and recovery firm in the US and Canada – Manage a portfolio of over 70,000 pieces of mailing equipment for the largest US and Canadian companies. – Speak and teach nationally on mail savings and industry trends. • Industry Co Chair- Boston Postal Customer Council/Mail Systems Management Association member. CMDSS and MDC Certifications. • Featured Writer for Mailing Systems Technology Magazine. • Worked for one of the largest mailing vendors for over 18 years – Director of national sales for presort, tabletop inserters, addressing hardware/software and green offerings. – Was one of the top 5 account managers nationally working with some of the nations top accounts. • Not affiliated with any mailing vendor - Unbiased advice. May 17, 2017 2
  3. 3. What We’ll Cover: 1. The Facts 2. Technology changes – The move from analog to digital connectivity 3. Functional differences of the 2 solutions 4. Customer experience of the 2 solutions May 17, 2017 3
  4. 4. What is happening to business mail May 17, 2017 4 USPS Mail Volume By Class (Pieces) - In Millions - From USPS Final Revenue, Pieces, and Weight by Classes of Mail Year 2010 2011 2012 2013 2014 2015 2016 % Change from 2010- 2016 First-Class Mail® Letters 27,437 24,722 22,735 21,452 20,860 19,887 18,910 -31.1% Cards 1,447 1,312 1,157 1,049 923 855 795 -45.1% Flats 2,481 2,218 2,048 1,894 1,758 1,683 1,570 -36.7% Presort 46,225 44,269 42,524 41,144 40,193 40,174 39,943 -13.6% Total Pieces 77,590 72,521 68,464 65,539 63,734 62,599 61,218 -21.1% Priority Mail 779 790 824 871 897 974 1,004 28.9% Priority Mail Express 43 40 40 39 36 36 33 -23.3% First-Class Package Service 0 129 411 544 612 732 776 Total Pieces 822 959 1,275 1,454 1,545 1,742 1,813 120.6% Invoices and Statements – Largest application More going online Consolidated print (See reduced decline in Presort) Checks Accounts Payable – Move to electronic Payroll Checks – Almost eliminated Marketing Mailings (Flyers, newsletters, special offers, post cards etc.) Outsourced to Mail Houses (Use permits) Switch to email marketing Day to Day Mailings – Majority of what is left. Postage Technology Changes - From USPS Meter Market Share Reports Sep 2015 Year Ending 2008 2010 2012 2014 2015 Changes from 2008 to 2015 Postage Meters 1,488,874 1,381,151 1,241,973 1,132,815 1,072,365 -28% PC Postage 865,024 944,180 1,296,441 1,373,651 1,552,317 79% Package volumes are growing as the USPS improves tracking and pricing is more competitive for lightweight items going to residences.
  5. 5. Postage Meters will Need to Be Converted From Analog to Network Connections • Hard Truth: It is going to be harder to get analog phone lines in the future. • The mailing vendors are also not including analog modems with new equipment orders. • You may not be able to get support for analog connected systems. • Analog lines cost $3-600 per year without other uses and these charges can now be eliminated. • The biggest challenge is firewall issues. This can delay the installation and require multiple departments to be engaged. • Since this transition is going to have to occur, it is a great time to explore your options for your future equipment needs. May 17, 2017 5
  6. 6. Mailing System Options May 17, 2017 6 PC Postage Hand Feed Mailing Systems Automatic Feed Mailing Systems Vendors Pitney Bowes, Endicia, Stamps.com (Packages Only - USPS Click N Ship, Neopost, Hasler, FP) Pitney Bowes, Neopost, Hasler, FP, Datapac Pitney Bowes, Neopost, Hasler, FP, Datapac Typical Monthly Postage Use <$300 (Higher Shipping Volumes) <$500 >$500 Equipment Speed (Pieces per Minute) N/A 20-65 70-310 Envelope Sealing N/A •* • Postage Tapes Labels sheets or label printer rolls Tape Sheets Tape sheets or rolls Weighing 5-100 LB Scales* 2-149 LB Scales* 2-149 LB Scales* Postal Accounting • • • Number of Accounts that can be tracked Unlimited 10-50 50+ Transaction Level Detail • •* Additional Printing Capability Destination Address Printing • Return Address Printing • •* QR Code or Custom Graphic • •* Full Color Printing •** • High End Space Requirements Minimal Minimal Medium to High Monthly Investment $0-35 (Est) >$20 (Est) >$150 (Est) Postage Refill Charge N/A ** ** Postage Advance Charge N/A ** ** Maintenance Charge N/A ** ** Rate Change Fees N/A ** ** Supplies Ink - Manufacturer (Per Impression) N/A $.01-.06** $.003-.012** Tape - Manufacturer (Per tape) $.03-$.07 per label** $.05-.13** $.01-.08** * - Optional ** - Varies by vendor
  7. 7. Simplicity Mailing System PC Postage Easy to Use Walk over to machine, place item on scale (or use default amount) and run your mail Log into website or download software program. Print postage directly onto envelope or stamp sheet May 17, 2017 7
  8. 8. Productivity Mailing System PC Postage Options: 18-310 Letters per Minute Sealer/Moisteners Integrated Weighing Scales Automatic Feeding Peel and stick or envelope feeder from Printer Ability to import address list – Destination address and postage can be run in one pass May 17, 2017 8 Mailing System PC Postage 4 x 6 label Some mailing systems may include a PC Postage Option Ability to import address list – Automatic label printing Letters and Flats Packages and Priority Mail
  9. 9. Flexibility Mailing System PC Postage Handle any mail volume, size or class Process mail or packages anywhere you have an internet connection Great for agile workforce/small offices Handle any volume of USPS® packages Some solutions offer the ability to compare and rate packages with UPS® and FedEx® May 17, 2017 9
  10. 10. Reporting Mailing System PC Postage Systems include basic accounting to track pieces and postage Visibility to every item stored in history for 90 days to 2 years. Class detail through web accounting available Flexible accounting options with details to user spends and access points May 17, 2017 10 Standard • Pieces and Postage for a time period. • Amount of money added to device. • 10-100 Accounts Tracked Enhanced • Summary or transaction level detail. • Mail Class Detail. • 50-3000 Accounts tracked over defined date range. • Charts and Graphs • Exportable to excel Standard • 1000 + Accounts Tracked • Defined date ranges • Account Balances • Visibility to every printed item. • Visibility to who ran the mail. • Charts and Graphs • Can see details across an enterprise • Manage user activity and access levels. • Exportable to excel
  11. 11. Postage Discounting Mailing System PC Postage First-Class Mail $.03 Letter Discount $.03 Letter Discount Electronic Return Receipt (For Certified Mail) $1.30 Savings over Retail Return Receipt (Option only available for mid-large mailing systems) $1.30 Savings over Retail Return Receipt – Comes standard for some PC Postage solutions Commercial vs Retail Rates As of 2015, postage meters can no longer get this discount unless accompanied by PC Postage 14% average Savings Priority Mail, 11% Priority Mail Express By submitting the address file and tracking information electronically May 17, 2017 11 Retail Commercial Base Commercial Plus Weight LB's January 22, 2017 January 22, 2017 % Savings over Retail January 22, 2017 % Savings over Base 1 $6.65-10.50 $5.95-9.89 6-13% $5.75-9.59 3% 5 $9.85-30.25 $7.17-28.72 5-27% $6.96-27.86 3% 10 $12.65-52.10 $9.09-50.17 4-28% $8.82-48.66 3% 25 $22.55-99.10 $18.11-90.77 8-25% $17.56-88.04 3% 50 $32.55-156.95 $26.74-143.71 8-19% $25.94-139.40 3% Flat Rate Envelopes $6.65 $5.95 11% $5.95 0% Small Flat Rate Box $7.15 $6.45 10% $6.45 0% Medium Flat Rate Boxes $13.60 $12.40 9% $12.40 0% Large Flat Rate Boxes $18.85 $17.05 10% $17.05 0% USPS Priority Mail®
  12. 12. Postage Discounting (Continued) Mailing System PC Postage First Class Parcels (Packages less than 16 ounces) Not applicable 7% average savings by converting from Retail to Commercial. Additional 30-62% savings for 13-15.99 ounce pieces that qualify for Commercial rates but would be forced to go Priority Mail Discounts only offered through PC Postage May 17, 2017 12 *If you are a high-volume mailer and either use automation software with barcodes or a presort service for your letters and flats, you will want to continue using a Mailing System to maintain those discounts. Weight Ounces First-Class Mail® - Parcels Retail First-Class Mail® - Package Services Commercial Savings Up to 4 $2.67 $2.61 2% 5 $2.85 $2.77 3% 6 $3.03 $2.77 9% 7 $3.21 $2.77 14% 8 $3.39 $2.77 18% 9 $3.57 $3.32 7% 10 $3.75 $3.46 8% 11 $3.93 $3.60 8% 12 $4.11 $3.74 9% 13 $4.29 $3.88 10% 14 $6.65-10.50 $4.02 40-62% 15 $6.65-10.50 $4.16 37-60% 15.999 $6.65-10.50 $4.30 35-59% Convert from Retail to Commercial
  13. 13. May 17, 2017 13 Round 2 Ease of Doing Business
  14. 14. Contracting Mailing System PC Postage Longer agreements Easy options Leases: Typically 3-5 years in duration that lock you into a specific payment Subscription fee (Paid month-to-month or annually) Meter rentals: This is typically for low end Mailing Systems only. Larger units can be purchased along with a meter rental and maintenance agreement. Annual increases and usage based rates may apply. These are typically on 1-3 year terms. May 17, 2017 14
  15. 15. Installation and Training Mailing System PC Postage New installs must be connected to the network Accessed via web or installed directly onto PC Low-end – Self install unit Website and online videos Mid-High End – On site tech install Daily/weekly webinars Website and online videos May 17, 2017 15
  16. 16. Ongoing Support Mailing System PC Postage Detailed website Detailed website 800 call center assistance 800 call center assistance Low end- Service by replacement Low end – Service by replacement (Scales and Label Printers) Mid-High end – On site support Enterprise Accounts – Dedicated account manager Enterprise Accounts – Dedicated account manager May 17, 2017 16
  17. 17. Billing Mailing System PC Postage Paper or electronic billing Paper or electronic billing Payment Options: Credit card (Not postage) ACH (Supplies/Postage/Lease/Rental) Check (Supplies/Postage/Lease/Rental) Payment Options: (Rental/Postage/ Supplies) Credit Card ACH Check May 17, 2017 17 Invoiced Items • Lease or Rental (Monthly/Quarterly) • Maintenance/Rate Changes (Annual) • Postage – Prepaid or Advanced Invoiced Items • Monthly Subscription • Postage – Prepaid or Advanced PC Postage wins this category for the simplicity of the offer and the ease making changes.
  18. 18. May 17, 2017 18 Round 3 Investment
  19. 19. Typical Monthly Costs Mailing System PC Postage $20 - $1000/month $5-$40/month Fees: Maintenance Rate Change Meter Resets Postage Advance Fees Postage Overage Fees Equipment insurance Late fees Finance Charges Property Taxes (on leases) Fees: Limited – Some vendors may charge finance charges and late fees Supplies: Ink/meter tape Low volume: $0.01-$0.13 High volume: $0.003 - $0.08 Supplies: $0.03 - $0.07 per label. Some vendors allow you to use Avery address labels May 17, 2017 19
  20. 20. Fleet Management Large fleets require a blended approach • Low Volume locations – Easier to manage using PC Postage – Eliminates networking issues – No hardware maintenance or costs – Easier to add/remove subscriptions (Flexibility) – Accounting/Controls – Provide superior detail • Mid-High Volume locations – Need mailing systems – More efficient processing – Some Mid-high-end unit include PC Postage – Allows for automation – Letter and Flat rates May 17, 2017 20
  21. 21. Event Champion Mailing System PC Postage Best suited for higher letter and flat volumes Best suited for low volume mailers or package/priority shippers May 17, 2017 21
  22. 22. Helping multi-location organizations streamline their mailing costs 70,000 pieces of equipment, managed by Postal Advocate Recovered over $4,700,000 in lost postage, vendor overcharges and fees ENTERPRISE-WIDEMAILAUDITANDRECOVERY OVER $27,500,000 IN CLIENT SAVINGS $697K 60% Average Client Savings Average Equipment Savings HOW WE DO IT • 200+ years of industry experience • Comprehensive web-based tool providing visibility of all mail and equipment spend • Time Savings - Assistance in fleet management visit www.postaladvocate.com or call (888)977-MAIL(6245)
  23. 23. Sign Limited Agency Agreement/Kick-Off Call. Provide copies of vendor invoices, AP export, location list, equipment inventory list. Present savings opportunities and get client approval. Postal Advocate provides ongoing support, manages renewals, billing and vendor compliance. Provide enterprise visibility of all spend, costs and documented savings through enterpriseAdvocate. Provide client log-in. 1 2 3 4 5 6 HOW IT WORKS Work with current vendor to build population report, contract terms/start/end dates, postage volumes, costs. Analyze spend, check for contract compliance, billing errors, vendor fees/overcharges, lost postage. Identify savings opportunities. Submit vendor credit requests, lost postage forms and eliminate avoidable fees. Negotiate pricing. Create catalog. Work with locations - asset validation, rightsize, termination… Full implementation of savings. visit www.postaladvocate.com or call (888)977-MAIL(6245) Conduct Analysis NO COST – AUDIT PHASE CONTRACTED CLIENT
  24. 24. Upcoming Webinars Wed June 14, 2017 at 11AM EST - Top 11 Common Mail Mistakes - How it could affect your bottom line. May 17, 2017 24 Check out www.postaladvocate.com to register
  25. 25. Contact info: (20pt) May 17, 2017 25 Questions? Contact: Adam Lewenberg - President 888-977-MAIL X 501 adam.lewenberg@postaladvocate.com
  26. 26. May 17, 2017 26

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