Volume I, Issue I

On-Demand Mail Services Provides Big Postage Discounts for Small Mailers

On-Demand Mail Services, LLC an Oakland County based Mail Presorter opened for business in May of 2008. Since its inception, the business has experienced 211% growth, even in this tough Michigan economy.

“We have a unique approach to mail-sorting that allows small volume mailers to take advantage of postage discounts that used to be available only to the big guys” states Rob Quick, VP of Business Development at ODMS. For years now, presorters in Michigan only focused on high volume mailers. Our approach focuses on smaller mailers, as little as 500 pieces per mailing, and commingles those mailings together to create volume.

ODMS utilizes the USPS Workshare program that provides postage discounts for standardizing, bar coding, sorting, and preparing mail in zip code order, meeting the stringent guidelines put forth by the US Postal Service.

The program, ODMS calls Valu- Post, is available to small volume mailers like churches, schools, law offices, accounting firms, insurance/ financial firms, medical offices and virtually any other small business. To qualify, the mail pieces must be letter-sized with typed addresses and have metered postage at the $.394 rate. Your mail will be picked up, processed immediately and inducted into the mail stream with no delay in delivery timing.

Postal Rate Hikes Effect Everyone

The U.S. Postal Service announced recently that the price of a first-class stamp will rise to 44 cents on May 11. “The Postal Service is not immune to rising costs which are affecting homes and businesses across America today,” said Postmaster General John Potter. “Even with the increases, the Postal Service continues to offer some of the lowest postage prices in the world.” Postage rates go up annually in May.

Buffeted by rising costs and declining mail volume, the Postal Service lost $2.8 billion last year and, unless the economy turns around, is headed toward much larger losses this year.

The post office has been cutting costs, reducing work hours, and has asked Congress to ease requirements for advance funds for retiree benefits and to allow mail to be delivered five days a week instead of six.

Standard Mail Savings Guarantee

Do you know that the discount for drop-shipping standard mail to the BMC is $.033 per piece? If you have enough saturation you can get an additional $.009 savings. Many mailers already realize the value of discounted postage offered by standard mail, but don’t take advantage of the additional drop-shipping discounts because they think the cost would be greater than the benefit. “That is not so” says Mike Tickles, VP of Operations at On- Demand Mail Services, “As a matter of fact, we provide our customers with a savings guarantee because we drop-ship for them.”

In addition to the savings, drop-shipping often yields a quicker in-home date because it requires less handling by the post office which means less opportunity for delays. The graphic above outlines postal delivery timing for Standard Mail. The Great Lakes Region currently experiences an 87.2% on-time rate for Destination Entry mail (mail that is drop-shipped) versus only 63.2% on-time rate for Non-Entry mail. The “on-time” delivery expectation for Standard Mail is 6-10 business days.

So, by Drop-Shipping your mail, ODMS is providing quicker delivery for less money…that is a value proposition that is hard to argue against.

On May 1, 2009, posted in: Newsletters, Postal Update by
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