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Top 10 Ways for Enterprise Organizations to Save on Mail Cost and Recover Lost Postage

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Postal Advocate will be presenting savings strategies you can use across your organization to save on mail cost and recover lost postage.

What will be covered:

1. Equipment Savings Process – How to reduce mailing equipment costs
2. Analysis and Visibility – Gaining visibility of your organization’s mailing fleet to meet IRS/FASB requirements.
3. Choosing the Right Vendor and Acquisition Method
4. Choosing the Right Solution for all your locations and partnering with the right vendor(s)
5. Enterprise PC Postage – Deployment and management of PC Postage
6. Eliminating Vendor Fees/Overcharges – Steps used to find thousands in mailing vendor fees and overcharges
7. Lost Postage Recovery – Understanding the process of recovering lost postage from dormant/closed accounts
8. Enterprise Fleet Management – Maintaining the fleet and keeping an eye on postage spend and volumes
9. Postage Savings – The main ways to reduce postage costs
10. Using Best-in-Class Tools and Resources – Complete visibility to spend using the most innovative tools, resources available along with on-going maintenance and support

Published in: Education
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Top 10 Ways for Enterprise Organizations to Save on Mail Cost and Recover Lost Postage

  1. 1. Top 10 Ways for Enterprise Organizations to Save on Mail Cost and Recover Lost Postage
  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 134,000 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. June 19, 2019 2
  3. 3. What We’re Covering 1. Equipment Savings Process – How to reduce mailing equipment costs 2. Analysis and Visibility – Gaining visibility of your organization’s mailing fleet to meet IRS/FASB requirements. 3. Choosing the right vendor and acquisition method 4. Choosing the right solution for all your locations and partnering with the right vendor(s) 5. Enterprise PC Postage – Deployment and management of PC Postage 6. Eliminating Vendor Fees/Overcharges – Steps used to find thousands in mailing vendor fees and overcharges 7. Lost Postage Recovery – Understanding the process of recovering lost postage from dormant/closed accounts 8. Enterprise Fleet Management – Maintaining the fleet and keeping an eye on postage spend and volumes 9. Postage Savings –The main ways to reduce postage costs. 10. Using Best-in-Class Tools and Resources – Complete visibility to spend using the most innovative tools, resources available along with on-going maintenance and support June 19, 2019 3
  4. 4. 1. Equipment Savings Process June 19, 2019 4 Optimized Mailing Fleet Asset Management 1. Gain visibility to your equipment and spends. 2. Validate questionable charges. 3. Negotiate enterprise pricing and terms. 4. Work with locations on equipment changes. 5. Eliminate fees and overcharges 6. Maintain postage balances and claim lost funds. 7. Continual review to ensure savings. This process leads to 30-70% savings!
  5. 5. Mailing Spend Visibility • Most organizations lack complete information on their mailing spends including: – Equipment Inventory – Model, Serial Number, Description, Install Dates – Lease Details – Contract Number, Term, Amount, Items Covered and End of Lease Dates – Postage Spends – How much postage does each site use and what are the balances sitting in prepaid and advance accounts. – Other Mailing Costs – Meter Rental, Maintenance, Rate Change, Supplies. – Avoidable Fees – Late Fees, Finance Charges, Equipment Insurance, Loyalty Programs, Transaction Frees, Reset and Advance Fees • Lack of detail leads to significant overspending. Our average savings is 60% because we are managing this detail • Most organizations are spending thousands in fees and overcharges unknowingly. • Lack of controls lead to lost postage. • The Financial Accounting Standards Board (FASB) has established new lease rules (ASC 842) that require companies to record operating leases on the balance sheet as a liability vs. only declaring the expense on the income statement. – Must include the full future discounted value of the remaining lease obligations. – Public companies – Started 12/15/18 – Non Public companies – Starts 12/15/19 – Will require that you have full visibility to all leases June 19, 2019 5
  6. 6. 2. Analysis and Visibility • 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. • Go to accounts payable and pull spend reports from the main mail vendors and USPS. • Enter your account numbers on the vendor websites. • Monitor your inventory, invoices and postage balances online (Recommended to do this monthly). • Consider postal accounting systems that provide transaction and mail class visibility to identify postage savings opportunities. • Find all active locations with equipment. • Set up a schedule for continual review. June 19, 2019 6
  7. 7. 3. Choose the Right Mailing Equipment Vendor and Acquisition Method • 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 – Ease of doing business – Total cost of ownership/lease • Acquisition methods – Should compare – Purchase – Need to add in meter, maintenance, rate updates costs. – Lease – Typically all inclusive but the equipment is not owned at the end of term. – Rental – Low end systems only but provides increased flexibility. June 19, 2019 7
  8. 8. 4. Choosing the Right Solution June 19, 2019 8 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 • Presort • Permit Accounts • Carrier Fleet Management
  9. 9. 5. PC Postage – Every organization should consider • Ability to print postage through the web from any computer. • Prints out stamps or full printing of the destination address, return address and tracking barcode. • Printing options - – Use your local/network printer on vendor provided sheets of stamps. (Most popular) – Print on vendor provided label printers. – Use your local/network printer to print directly on the envelope. – Use your local/network printer on shipping labels on plain paper. • Amazing accounting and reporting tools. • Enterprise tools to manage user access and reporting across the organization. • Inexpensive - $10-30 per month per license with short commitment periods. • Postage discounts not available through postage meters. June 19, 2019 9 Drawback – Not designed for high volume weighing, feeding and sealing applications where mail systems shine. Mail Type Stamps Postage Meter PC Postage Savings % Savings 1 Ounce Letter $0.55 $0.50 $0.50 $0.05 9% 1 Ounce Certified Mail with Return Reciept $6.85 $5.60-6.80 $5.60 $1.20-1.25 18% 5 Ounce First Class Parcel $4.39-4.81 $4.39-4.81 $3.18-3.63 $1.18-1.21 25-28% 10 Ounce First Class Parcel $5.19-5.66 $5.19-5.66 $3.82-4.33 $1.33-1.37 23-27% 15 Ounce First Class Parcel $7.35-12.20 $7.35-12.20 $4.94-5.53 $2.41-6.67 33-55% Priority Mail 1LB $7.35-12.20 $7.35-12.20 $6.95-9.91 $.80-2.29 4-19% Priority Mail 5LB $9.80-34.80 $9.80-34.80 $7.81-28.84 $1.99-5.96 17-25% Priority Mail 10LB $13.10-59.90 $13.10-59.90 $9.38-50.38 $3.72-9.52 16-40% Priority Mail Express $25.60-56.10 $25.60-56.10 $22.74-49 $2.86-7.10 11-13% Prices lower than available through postage meters.
  10. 10. 6. Eliminating Vendor Fees/Overcharges • 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. June 19, 2019 10 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 We find companies paying tens of thousands in fees and overcharges that can be recovered or eliminated for the future. Postal Advocate Avoidable Fees and Overcharges Savings Stats 5325 Transactions - $10,630,142 Typical Vendor Overcharges Invoices notgiving national accountdiscounts. Meter,maintenanceand ratechangecharges when included on a lease. Bills for equipmentfromclosed sites. Resetand advancepostagefees thatshould beincluded. Loyalty points thatgo undredeemed or cashed in for personal use.
  11. 11. 7. Lost Postage Recovery • We have found over $5,972,119 in lost postage sitting in dormant postage accounts. Plus over 49,000 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. Postal Advocate can research these funds and help you get them returned. June 19, 2019 11
  12. 12. 8. Enterprise Fleet Management Recommendations: • Have a current master service agreement with one or two mailing vendors. • Develop equipment standards that can be followed throughout your locations. • Define the review process for renewals and new locations that ensures you are not being oversold. • Request a national billing and support account manager from your vendor to assist with account issues. • Consolidate equipment and postage bills onto centralized schedules to eliminate fees and confusion. Request these in an excel format that can be uploaded and easy to review. • Define a postage payment strategy that minimizes the number of funding accounts and methods of payment (Prepaid, Advance, Credit Card). June 19, 2019 12
  13. 13. 9 - Postage Savings – Main Areas • Use a postage meter or PC Postage to save $.05 per letter. • Convert Letters and Flats to Automation Classes – up to 60% Savings! – Up to 3.5 ounces for the price of 1 ounce! - Fold flats for additional savings – Faster delivery – Automated address validation • Convert Priority Mail® from Retail to Commercial – 19% average savings for Priority Mail® – 13% average savings for Priority Mail® Express • Convert First-Class Mail® Parcels from Retail to Commercial – 27% Savings • User Electronic Return Receipt with Certified Mail - $1.20 Savings. • Compare pricing across carriers for the best rate on each package. June 19, 2019 13 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 $0.55 $0.50 $.412-.459 $.383-.428 $.256-.291 $.138-.173 3 Ounce Newsletter (6X9) $0.85 $0.80 $.412-.459 $.383-.428 $.256-.291 $.138-.173 8 Ounce Flat (9X12) $2.35 $2.35 $1.78-1.85 $1.54-1.78 $.63-.86 $.42-.65 Post Card $0.35 $0.35 $0.280 $.257-.274 n/a n/a Single Piece Rates Automation Mail with Barcodes In order to get postage savings you need high levels of visibility to current mail spends across the enterprise!
  14. 14. 10. Using Best In Class Tools and Resources • Work with all vendor’s data and can build this visibility • Maintain this data in a multi-vendor multi-location system • Update this data monthly and when big changes in your portfolio happen • Use this data to drive savings through your portfolio June 19, 2019 14
  15. 15. Postal Advocate enterpriseAdvocate – Multi Location System - Dashboard June 19, 2019 15 The data above is for demonstrative purposes only. Data does not represent true spends and costs.
  16. 16. Enterprise Advocate – Location View June 19, 2019 16
  17. 17. Helping multi-location organizations streamline their mailing costs Over 134,000 pieces of equipment, managed by Postal Advocate Recovered over $16,600,000 in lost postage, vendor overcharges and fees ENTERPRISE-WIDEMAILAUDITANDRECOVERY OVER $50,000,000 IN CLIENT SAVINGS $1.5M 60% Average Client Savings Average Equipment Savings HOW WE DO IT • 230+ 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)
  18. 18. 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
  19. 19. Summary 1. Equipment Savings Process – How to reduce mailing equipment costs 2. Analysis and Visibility – Gaining visibility of your organization’s mailing fleet to meet IRS/FASB requirements. 3. Choosing the right vendor and acquisition method 4. Choosing the right solution for all your locations and partnering with the right vendor(s) 5. Enterprise PC Postage – Deployment and management of PC Postage 6. Eliminating Vendor Fees/Overcharges – Steps used to find thousands in mailing vendor fees and overcharges 7. Lost Postage Recovery – Understanding the process of recovering lost postage from dormant/closed accounts 8. Enterprise Fleet Management – Maintaining the fleet and keeping an eye on postage spend and volumes 9. Postage Savings–The main ways to reduce postage costs. 10. Using Best-in-Class Tools and Resources – Complete visibility to spend using the most innovative tools, resources available along with on-going maintenance and support June 19, 2019 20
  20. 20. June 19, 2019 21 Contact: Adam Lewenberg - President 888-977-MAIL X 501 adam.lewenberg@postaladvocate.com Questions?

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