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Top 10 Mail Savings Strategies You Can Use Across Your Enterprise

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Postal Advocate presents mail savings strategies you can use across your enterprise.

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Top 10 Mail Savings Strategies You Can Use Across Your Enterprise

  1. 1. Name (18pt) Title (14pt) Top 10 Mail Savings Strategies You Can Use Across Your Enterprise
  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 93,000 pieces of mailing equipment for the largest US 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 17 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. November 16, 2017 2
  3. 3. What We’re Covering 1. Choose the right system 2. Choose the right vendor 3. Negotiate the best deal 4. Watch out for avoidable fees 5. Look for billing overcharges 6. Best postage funding strategies 7. How to recover lost postage funds 8. Cash in loyalty points 9. Supplies strategies 10. Creating visibility and oversight Bonus – Postage savings ideas your should be considering November 16, 2017 3
  4. 4. 1. Choose the right system for your needs. November 16, 2017 4 Low Mid High Typical Monthly Postage Use <$500 $500-5,000 >$5,000 Equipment Speed 15-45 Letters/Min 50-180 Letters/Min 70-310 Letters/Min Feeding Hand Feed Hand or Auto Feed Auto Feed Sealing Some Models Included Included Meter Tapes For Oversized Items Strip Tape Sheets (Fed like an envelope) Strip Tape Dispenser Strip Tape or Roll Tape Dispenser Weighing (External Scale) 2-10LB 2-149LB 2-149LB Weighing (Internal Scale) N/A Higher end models Optional Postal Accounting Summary Info only Summary or Transaction Level Summary or Transaction Level Additional Printing Capability Simple Meter Ads and Endorsements Simple Meter Ads and Endorsements Optional - Customized return address and Graphics Printing Space Requirements - LxWxH < 29"x18"x13" 30"x15"x12"- 80"x25"x24" 58"x23"x17"- 104"x23"x33" Typical Supply Costs - Ink and Tape (Per Impression) Ink - $.01-.06, Tape $.05-.13 Ink - $.003-.03, Tape $.04-.08 Ink - $.003-.005, Tape $.01-.04 Typical Monthly Lease Price $25-125 $125-500 >$500 Mailing System Type Additional Equipment Guides can be found on our blog: www.postaladvocate.com/blog • Inserters • Addressing Systems • Envelope Printers • Mail Automation Software • Incoming Tracking Systems • Shipping Systems • PC Postage • Letter Openers and Extractors • Mail Accounting Systems
  5. 5. Recommended Mail Volumes - What type of system do you need based on your current and projected mail volumes? • Service - The performance of the unit could decrease if the machine is used far above these recommended volumes. • Over Buying - If your volumes are much lower than those recommended, you could be paying more for a machine than you need. • Productivity – All units are designed to process a specific mail volume efficiently. If volumes are too high, it may not be productive to tie up labor with a slower system. If volumes are too low, the unit may be too complex for the needs of the application. November 16, 2017 5
  6. 6. Machine Speed – How fast do you need the system to process the mail to make it efficient? November 16, 2017 6 Low Mid High Typical MonthlyPostage Use <$500 $500-5,000 >$5,000 EquipmentSpeed 15-45 Letters/Min 50-180 Letters/Min 70-310 Letters/Min Mailing SystemType • Biggest equipment differentiator • Groups machines by volume • Assume 50-75% of speed for actual output.
  7. 7. Envelope Feeding and Stacking - How do you need the mail fed into and out of the system? Feeding • Hand Feed - Push in and Pull Out • Hand Feed - Push from the left and the machine feeds it through the unit. • Automatic Feed Exit Options • Drop Stacker • Power Stacker - Exit option for High volume applications. November 16, 2017 7
  8. 8. Envelope Sealing - Do I need the system to seal envelopes and how are they to be prepared prior processing? • Flaps Closed Sealing • Flaps Open Sealing • Flaps Open and Closed Sealing November 16, 2017 8
  9. 9. Meter Tapes - Are there a lot of pieces that are too big to fit into the system and will require meter tapes? • Strip Tape Sheets - Cost per Tape (Per imprint): $.05- .13 • Strip Tape Dispenser - Cost per Tape (Per imprint): $.06-.08 • Roll Tape - Self-Adhesive Cost per Tape (Per imprint): $.02-.04. Some High volume units will have an option for gummed back tape that comes out wet and the cost per tape is about $.01 November 16, 2017 9
  10. 10. Weighing - How are you going to weigh and rate different sized pieces? • 2-10 LB External Scale • 15-149 LB External Scale • Off-weight Processing • Optional Internal Scale November 16, 2017 10
  11. 11. Postal Accounting - Do you need to track mail by department or cost center? • How many accounts do you need to track? • Are you only looking for a month end summary? • Do you need the details of every transaction? • How do you need to access the data? – From the screen of the mailing system or printed on a meter tape? – With a connected printer? – Having the machine connected to a PC or laptop? – Accessed from the vendors website? November 16, 2017 11
  12. 12. Additional Printing Capability - What else would I like the system to print? • Postal Inscription • Meter Advertisement • Return Address • QR Code or Custom Graphic November 16, 2017 12 128 Commonwealth Road Wayland, MA 017778
  13. 13. • Watch out for overhead height so machine covers can open. • If you have exit stackers - Some expand as more mail is put on so make sure you have room. November 16, 2017 13 Space Requirements - Can the system fit in my space? Low Mid High Typical Monthly Postage Use <$500 $500-5,000 >$5,000 Equipment Speed 15-45 Letters/Min 50-180 Letters/Min 70-310 Letters/Min Feeding Hand Feed Hand or Auto Feed Auto Feed Sealing Some Models Included Included Meter Tapes For Oversized Items Strip Tape Sheets (Fed like an envelope) Strip Tape Dispenser Strip Tape or Roll Tape Dispenser Weighing (External Scale) 2-10LB 2-149LB 2-149LB Weighing (Internal Scale) N/A Higher end models Optional Postal Accounting Summary Info only Summary or Transaction Level Summary or Transaction Level Additional Printing Capability Simple Meter Ads and Endorsements Simple Meter Ads and Endorsements Optional - Customized return address and Graphics Printing Space Requirements - LxWxH < 29"x18"x13" 30"x15"x12"- 80"x25"x24" 58"x23"x17"- 104"x23"x33" Typical Supply Costs - Ink and Tape (Per Impression) Ink - $.01-.06, Tape $.05-.13 Ink - $.003-.03, Tape $.04-.08 Ink - $.003-.005, Tape $.01-.04 Typical Monthly Lease Price $25-125 $125-500 >$500 Mailing System Type
  14. 14. 2. Choose the right mailing equipment vendor • It is recommended to shop rates between 2 vendors. – Pitney Bowes, Neopost, Hasler (Owned by Neopost), FP, Data- pac and Stamps.com (PC Postage Only). • Compare the following: – Model features and specifications. – Service support in your area – Ask for references. – Total cost of ownership/lease – Ease of doing business November 16, 2017 14
  15. 15. 3. Negotiate the Best Deal • Lease or Purchase • Avoid Lease Gotchas – Evergreen Clauses – Remaining Balances – Lease Extensions • Question every equipment description line item. • Make sure agreement is all inclusive. – Equipment, meter, meter resets, postage advances, maintenance and rate updates. • Single Locations – Buy at the end of the month/quarter. • Multi Locations – Use national spend to set contract rates. November 16, 2017 15
  16. 16. 4. Watch Out for Avoidable Fees • Pay bills on time • Look at each invoice and validate all chargeable items • Cancel vendor equipment insurance • Terminate chargeable loyalty programs • Make sure postage refill and advance charges are included or monitored November 16, 2017 16 Postage Refill Fees - Rentals $0-20 each Postage Advance Fees Included or up to 1% of the Advance Postage Advance Late Fees 0-15% of the Advance Postage Advance Finance Charges 15% or higher APR Overlimit Credit Charge Varies by Vendor Annual Fee Rewards Program Varies by Vendor Lease Late Fees Varies by Vendor and Lease Value Insurance - Leases Only Varies by Vendor and Lease Value - Automatic enrollment unless proof insurance is provided. Mailing System Fees
  17. 17. 5. Look for Billing Overcharges • We have found over $5,000,000 in billing overcharges that the vendors will refund if you catch them. Here are the most typical: – Locations still being invoiced for equipment that was picked up or not in use. – Meter rentals, refill and advance charges, maintenance and scale rate changes that are being invoiced but should have been included in the lease. – Locations not getting the corporate discount for supplies, meter rentals and maintenance agreements November 16, 2017 17
  18. 18. 6. Postage Funding – Prepay or Advance • Prepay Advantages – No fees • Advance Advantages – Convenience • Don’t be fooled by earning interest on prepaid balances. • Choose one postage payment method and stick with it - don’t flip flop. • Check balances in the meter and in the postage account. • Don’t send money to the USPS® – Use the vendor provided methods. (Easier for them to track) • Think twice about ACH. November 16, 2017 18
  19. 19. 7. Recover Lost Postage • We have found over $2,600,000 in lost postage sitting in dormant postage accounts. Plus over 27,000 transactions turned over to the states. This happens because: – Offices close, merge or just turn in their meters. – The money is expensed once sent in for postage. – The advance account is used when funds sit idle in the prepaid. • Steps to find money. – Find account numbers of your current and past meters. – Enter these account numbers online on the vendors website to see if any data is available. – Contact your meter vendor to validate funds available. – Check the unclaimed funds databases to see if funds were turned in. November 16, 2017 19
  20. 20. 8. Cash in Loyalty Points • Pitney Bowes has a rewards program that gives you points for purchasing postage, supplies or other services that can be linked to the Purchase Power account. • These points oftentimes sit idle or are not understood. • Points can be turned in for: – Purchase power credits that can be used for postage and supplies. – Personal gifts. November 16, 2017 20
  21. 21. 9. Supplies Strategies • Buy in bulk – Most vendors will give you published discounts if you buy multiple ink cartridges and meter tapes. • Check third party non OEM (Low Volume) – There are many companies out there offering non mailing vendor based supplies that may be a consideration. The major office supply stores are also carry this ink for low end meters. Find out from your manufacturer if there is any binding agreement where you are required to use their supplies. • Ask for discounts – If you have multiple sites or are buying large amounts of supplies, ask if you are eligible for any additional discounts. It never hurts to ask. November 16, 2017 21 Low Mid High Typical Supply Costs - Ink and Tape (Per Impression) Ink - $.01-.06, Tape $.05-.13 Ink - $.003-.03, Tape $.04-.08 Ink - $.003-.005, Tape $.01-.04 Mailing System Type
  22. 22. 10. Visibility and Oversight • Get reports from your vendors that list: – Account Numbers (Install, Lease, Prepaid and Advance Postage) – Lease Information – Rate, Term, End of Lease, Items covered. – Meter rentals and maintenance agreements. – Model, serial number and description of every item. • Enter your account numbers on the vendor websites. • Monitor your inventory, invoices and postage balances online. • Find all active locations with equipment. • Calculate your postage spends on a location basis. • Set up a schedule for continual review. November 16, 2017 22
  23. 23. BONUS – Postage savings ideas – Letters and Flats Rates below are based on the 1/21/18 USPS Rate Increase • Use a postage meter or PC Postage to save $.03 per letter. • Use Presort Services if you have over 500 pieces per day or pickups of 1000 or more. • Convert Letters and Flats to Automation Classes – up to 73% Savings! – Up to 3.5 ounces for the price of 1 ounce! – Fold flats for additional savings – Faster delivery – Automated address validation November 16, 2017 23 Flat Envelope Sheets First Class Mail® Flat - Large Envelope First Class Mail® Letter - 6X9 Envelope (Metered) Typical Presort Service - First- Class Mail® Letter First-Class Mail® - Automati on Letter Savings 1-2 $0.98 $0.46 $.403-.453 $.373-.453 53-62% 3-4 $1.19 $0.46 $.403-.453 $.373-.453 61-69% 6-10 $1.40 $0.70 $.403-.453 $.373-.453 50-73% Weight Assumptions - Paper = .16 Ounces, Flat = .6 Ounces, 6X9 Envelope = .3 Ounces Letter Envelope - Example 6X9 or #10 Annual Postage # of Pieces @ $.46 each Savings @ $.03 Each $1,000 2,174 $65.22 $10,000 21,739 $652.17 $100,000 217,391 $6,521.74 $1,000,000 2,173,913 $65,217.39 First-Class® Mail Metered Savings Mail Piece Examples First-Class Mail® Retail Single Piece First-Class Mail® Metered Single Piece Typical Presort Service - First- Class Mail® First-Class Mail® - Automation Marketing Mail® - Automation Marketing Mail® Non Profit- Automation 1 Ounce #10 Envelope $0.50 $0.47 $.408-.458 $.378-.424 $.251-.287 $.136-.172 3 Ounce Newsletter (6X9) $0.92 $0.89 $.408-.458 $.378-.424 $.251-.287 $.136-.172 8 Ounce Flat (9X12) $2.45 $2.45 $2.18-2.27 $1.94-$2.18 $.689-.857 $.491-.659 Post Card $0.34 $0.34 $.274-.28 $.257-.274 n/a n/a Single Piece Rates Automation Mail with Barcodes
  24. 24. BONUS – Postage savings ideas – Priority and Express Rates below are based on the 1/21/18 USPS Rate Increase • Commercial offers huge discounts over retail rates. • Free tracking on usps.com. • Need to process through a PC Postage solution to get the discounts. • Multiple vendor options to process packages • Requires the operator to enter the address and submit to the USPS electronically and create a shipping label vs. meter tape. November 16, 2017 24 10% Average Savings 12% Average Savings Retail Commercial Base Commercial Plus Weight LB's 1/21/2018 1/21/2018 % Savings over Retail 1/21/2018 % Savings over Base 1 $6.70-10.60 $6.55-10.02 2-8% $6.35-7.72 3% 5 $9.85-30.25 $7.41-29.15 4-25% 7.19-28.28 5-18% 10 $12.65-52.10 $9.25-50.92 2-40% $8.95-49.39 4-13% 25 $22.55-99.10 $18.24-92.13 7-23% $17.69-89.37 5-10% 50 $32.55-156.95 $27.54-145.86 7-18% $26.71-141.48 3-5% Flat Rate Envelopes $6.70 $6.55 2% $6.35 3% Small Flat Rate Box $7.20 $7.05 2% $6.85 3% Medium Flat Rate Boxes $13.65 $12.85 6% $12.45 3% Large Flat Rate Boxes $18.90 $17.65 7% $17.10 3% Retail Commercial Base Weight LB's 1/21/2018 1/21/2018 % Savings over Retail 1 $24.70-48 $21.98-42.76 11% 5 $25.80-77.05 $22.98-67.22 11-13% 10 $38.90-113.65 $34.52-98.82 11-13% 25 $69.60-190.30 $62.05-169.58 11% 50 $123.35-351.90 $109.94-313.63 11% Flat Rate Envelopes $24.70 $21.98 11% USPS Priority Mail® USPS Priority Mail® Express
  25. 25. November 16, 2017 25 Best Savings Opportunity Less than 1 LB parcels where USPS holds a Monopoly (Private carriers start at 1LB) 1-3 day deliveryHighlights • 1 to 15% Increase • Greatest increase – As items get heavier with 15.99 ounces prices going up to 15% • Save by converting from Retail to Commercial with improved tracking! Weight Ounces Prior to 01/21/18 New Rates 01/21/18 % Increase Up to 4 $2.61 $2.66 1.9% 7 $2.77 $3.05 10.1% 10 $3.46 $3.50 1.2% 12 $3.74 $3.82 2.1% 14 $4.02 $4.38 9.0% 15.99 $4.30 $4.94 14.9% First-Class® Package Service Letters Weight Ounces First-Class Mail® - Parcels Retail First-Class Mail® - Package Services Commercial Savings Up to 4 $3.50 $2.66 24% 5 $3.75 $2.79 26% 6 $3.75 $2.92 22% 7 $3.75 $3.05 19% 8 $3.75 $3.18 15% 9 $4.10 $3.34 19% 10 $4.45 $3.50 21% 11 $4.80 $3.66 24% 12 $5.15 $3.82 26% 13 $5.50 $4.10 25% 14 $6.70-10.60 $4.38 35-59% 15 $6.70-10.60 $4.66 30-56% 15.999 $6.70-10.60 $4.94 26-53% Convert from Retail to Commercial BONUS – Postage savings ideas – First-Class Mail® Package Service Rates below are based on the 1/21/18 USPS Rate Increase
  26. 26. Certified Mail with Electronic Return Receipt (ERR) • Save $1.25 by switching to an electronic version. November 16, 2017 26
  27. 27. Helping multi-location organizations streamline their mailing costs Over 93,000 pieces of equipment, managed by Postal Advocate Recovered over $8,096,561 in lost postage, vendor overcharges and fees ENTERPRISE-WIDEMAILAUDITANDRECOVERY OVER $34,000,000 IN CLIENT SAVINGS $913K 60% Average Client Savings Average Equipment Savings HOW WE DO IT • 240+ 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)
  28. 28. 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
  29. 29. Upcoming Webinars: January 21, 2018 USPS® Rate Increases Webinar Dates – Tues January 16, 2018 at 11:00AM or 1:00PM EST - Wed January 17, 2018 at 11:00AM or 1:00PM EST Register online at www.postaladvocate.com November 16, 2017 30
  30. 30. Summary • Buy the right level of equipment with only the needed features. • Make sure you are buying from the right vendors at the lowest prices. • Look at every bill and watch out for fees and overcharges. • Pay attention to postage funding, recovery and rewards. • Maintain detailed visibility and oversight to all aspects of your accounts. November 16, 2017 31
  31. 31. Contact info: (20pt) November 16, 2017 32 Questions? Contact: Adam Lewenberg - President 888-977-MAIL X 501 adam.lewenberg@postaladvocate.com

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