Volume I, Issue II

Annual Postage Rate Hikes Force Mailers to Find a Better Way

Some mailers are already aware that using a presort bureau forcommingling mail increases the saturation and provides postage savings. However, there are some common misconceptions that keep some mailers from considering commingling as an avenue to provide postage savings.

Misconception #1: Presorters “hold” mail to build up volume.
That could not be further from the truth. Commingling revenues are a direct result of processing mail; the more mail processed, the more revenue generated. Holding mail would actually hurt a presorter’s revenue

Misconception #2: There is no way to verify that the mail was actually sent to the Post Office.
Presorters present mail to the post office using their own permit, regardless of the indicia that is printed on the mail piece, so the postal verification documents include ALL mail for the day. However, On- Demand Mail Services does provide customers with detail reports that show how a specific segment of the mail qualified. Combined with a copy of the USPS verified postage statement, a detail report is sufficient proof to your customers that the mail was indeed presented to the USPS on the date expected.

Misconception #3: Presorters keep the postage savings.
There are 2 basic pricing models, that On-Demand Mail Services uses for mail commingling. Those price models are “Blended Rate” and “Fee-Based”. When using a blended rate, the commingler does keep the postage savings, however, the commingler also loses money if the actual postage for exceeds the blended rate. In a “Fee- Based” model, the commingler charges a per-piece fee and returns the postage savings back to the customer. The billing model that the customer chooses will dictate the amount of risk they assume and the amount of savings available.

“We have a unique approach to commingling that allows our customers to benefit from the commingled postage savings” states Rob Quick, VP of Business Development at ODMS. “For years now, comminglers in Michigan would keep the postage savings that resulted from commingling. Our approach returns the postage savings to our customers so they benefit from our volume.” If you are not claiming entry discount on Standard Mail (DBMC/DSCF) or if you are mailing any First Class Letters at more than $.361, regardless of quantity, On-Demand Mail Services can help. You can reach ODMS by calling toll-free (888) 954-MAIL. A mail analyst will come meet with you to discuss postage savings options.

On May 20, 2009, posted in: Newsletters, Postal Update by
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