The Charnstrom Company Weblog

How to get bulk mail postage discounts

Bulk mail is a way to save money on postage by doing things that save the US Postal Service (USPS) money. They pass some of the savings along to you by charging you lower postage rates.

The most common type of bulk mail is called “Standard Class”. (It used to be called “3rd Class”.) Most advertising mail, newsletters, etc. are sent using Standard Class.

To use Standard Class, your pieces must be essentially identical, without any personal information. That means you can’t scribble notes to your friends on various pieces. It also means you can not send invoices, statements, and other individual information using Standard Class.

However, you may send form letters on which you personalize the name and address, so long as the rest of the letter is the same for everyone.

If you send more than 500 invoices, statements, or similar mail at one time, check with the USPS about discounts for presorted First Class Mail.
 

How much can I save?

There are various levels of savings depending on how much how much of the postal service’s work you are willing to do.

Doing the least amount of work, the postage for a typical one-ounce letter (or card, tri-fold, etc.) would range from 20.4¢ to 25.5¢ using Standard Class, compared with 41¢ for regular First Class mail.

There are much greater discounts if you are a nonprofit organization and have received approval from the USPS to mail at nonprofit rates. The nonprofit rate for the same piece of mail using Standard Class would range from 11.3¢ to 16.4¢.

Whether it’s worth it for you to do the extra work to get to the next level of discount depends a lot on how many pieces you are mailing. For mailings of many thousands of pieces, you probably want to save as much on each piece as possible. For smaller mailings, the cost for additional software or the time you would spend on more complicated preparation is often not worth the few extra pennies saved.

For example, adding barcodes to your addresses would save you, at most, 3¢ on the piece discussed above (less for nonprofit mailers). To add barcodes, you must have a perfect 9-digit zip code for every address. To do that, you either need to buy expensive software to verify your zip codes, or you need to send your list to an online zip code service. Either way, you quickly eat up the extra savings unless you are mailing thousands of pieces.
 
 
Big savings with the least hassle - Sorting your mail:  

You can earn most of the postage savings available by simply sorting your mail according to USPS bulk mail regulations. That will get you to the discounts discussed above.

Here’s what you need:

• A permit to mail at Standard Class rates. It lasts a year, and currently costs $175. You can use it as many times during that year as you want.
• A permit imprint account number. This lets you print a bulk rate postage box on your mail, instead of putting a stamp on each piece. The post office will set up an account for you to deposit your postage payments prior to mailing. There is a one-time charge of $175. It is automatically renewed at no extra charge when you renew your permit. Optional but well worth it.
• At least 200 pieces or 50 pounds of identical mail (whichever is less). You must mail that many pieces at one time to use Standard Class.
• Mail trays or mail sacks (depending on the size of your mail) and various other mailing supplies. These are provided by the USPS at no charge. You can pick up a bunch when you go to buy your permit.
• A FREE short course on preparing bulk mail, at the main post office for your area. Usually offered every week. Check with them for a schedule. Optional but well worth it.
• Your mailing list on a computer, in database software (like Access, Act!, dBase, Excel, etc.), mailing list software (like MailTracker or ChurchWindows), or in a standard database format. You’ll never get this right doing it from pre-printed labels, a word processor label list, or index cards.
• USPS “Pave-approved” sorting software. You can try to learn all the confusing rules yourself, and then keep up with the changes, or you can let a software company do it for you. We recommend our Postage $aver product. It’s easy to use and will print step-by-step instructions to walk you through preparing every mailing. The Lite version, which does everything you need for non-barcoded mail, is only $25 and includes free updates for a year. Optional but well worth it.
   

What to do to get the discounts:

• Sort your mailing list according the USPS rules. This is NOT simply sorting it in zip code order. In fact, sometimes you keep a whole zip code together, sometimes you put it with other zip codes, and sometimes you have to split it into different parts. (That’s why we recommended you use USPS-approved sorting software. It does the thinking for you.)
• Print out your labels or envelopes in this sorted order.
• Large pieces of mail and those with irregular shapes need to be rubber-banded together into “bundles”. (Normal sized letters and cards no longer are prepared in bundles.) A bundle is simply a stack of mail (no more than 6″ thick”) held together by rubber bands. You put a little sticker on the top piece of each stack to show what kind of bundle it is. For example, a bundle where all the zip codes have the same first three digits gets a little “3″ sticker. If you use Postage $aver, it will tell you whether you need to bundle your mail, what bundles to make and what stickers to put on.
• Next, put the mail in trays, if you are mailing letter-sized mail, or in sacks, if you are mailing larger pieces. Each tray or sack consists of mail that will go to a specific sorting facility and must be labeled using a very specific format. Postage $aver tells you what mail (or bundles of mail) go in what trays or sacks, and creates the tray or sack labels.
• When you have it all done, then load it all in the car and take it to the post office. You cannot drop Standard Class mail in the nearest mailbox. Your best bet is to take it to the main post office in your area that actually processes Standard Class mail. They have postal clerks there who specialize in bulk mail, and who may catch any problems with your mailing while you are still there at the post office.
• Some neighborhood and town post offices are authorized to accept bulk mail (not all are), but they will do nothing more than transport it to the main post office. They will not check your mailing to make sure it is correct. And, in general, you will not get “close location” discounts (called “entry” discounts) unless you take your mail to the main processing office.
• When you present your mail, you’ll need two forms. One is called the Postage Statement. You can get blank forms from the USPS, or you can download them. It’s a summary of who you are, how many pieces you are mailing, how many trays or sacks, and what rate you expect to be charged. Postage $aver prints and fills out this form for you.
• The second form is called a Rate Qualification Report. It’s basically a list of what bundles are in each tray, with a running total for each rate category. Postage $aver produces this report. While it is not absolutely required for every mailing, it’s makes life a lot easier for the postal clerk who has to review your mailing. Remember, you always want to make your postal clerk’s life as easy as you can.

Listed below are the major dates recommended for mail to be delivered by Dec. 25

►For International and Military mail

• Nov. 13 — Parcel Post to military APO/FPO addresses
• Dec. 4 — First-Class cards and letters or Priority Mail to military APO AE ZIP 093 addresses
• Dec. 4 — Priority Mail and First-Class Mail to Africa and Central or South America International Mail locations
• Dec. 11 — First-Class cards and letters or Priority Mail to all other military APO/FPO addresses
•  Dec. 11 — Priority Mail and First-Class Mail to all other International Mail locations
• Dec. 17 — Express Mail International to all other countries (except Canada, Dec. 18)
• Dec. 18 — Express Mail Military Service to all military APO/FPO addresses except APO ZIP 093
• Dec. 19 — Global Express Guaranteed to all countries (except Canada, Dec. 20) 

Charnstrom would like to invite you to some trade shows where you can talk to the vendors, manufacturers and other attendees about building a more efficient mail center and learning about the mail industry and the changes that are occurring with the postage increases and technology in handling your mail. There are seminars on motivating your personnel to organizing your mail center to future changes in the USPS.

These fall shows are for small and large; corporate and government mail facilities…there is something for everyone.

IFMA (International Facility Managers Association) October 24th – 26th  www.IFMA.org

MMF (Minnesota Mailers Forum) September 26th – 27th  www.mnmailers.com

We offer free tickets to attend these shows so please contact me for more information on which show will be most beneficial for you. Kathy@charnstrom.com

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by Richard Berman 

At a time when the market is tough, there are still some surprising opportunities for dealers who think outside the box. One such dealer who has grabbed opportunity with both hands is Larry Sheaffer of Sheaffer One Source in Plantation, Fla. The “hidden gem” he has discovered is new sales opportunities in his customers’ mailing facilities. Sheaffer says there are three main forces driving the increase in sales:

1. The need for increased security.
2. New options for cost savings and efficiency.
3. Improved ergonomics.

Sheaffer identifies new federal regulations as just one factor that has mandated changes. Many institutions are now required by law to upgrade mail center security and thus they are ready to buy, he contends.

Increased attention on individual privacy concerns is also fueling growth. In April 2003, the U.S. government issued updated rules to implement the privacy provisions of the Health Insurance Portability and Accountability Act (HIPAA). Some manufacturers created a new line of HIPAA compliant mail center furniture and equipment to meet the demand.

“HIPAA,” says Larry Sheaffer, “has opened up a large opportunity for increased sales. Specifically, hospitals, nursing homes, doctors’ offices, or any organization needing to protect patient record confidentiality, needs secure  mail center equipment. It is not an option. By law they have to have it.”

The second strong selling point, says Sheaffer, is efficiency. “Everyone is looking to save money,” he says. “New efficiencies in the way mail centers are designed can save customers as much as 50 percent in labor costs. Faster mail delivery, of course, is a big plus as well. Those are big selling points.”

Sheaffer works with manufacturers who supply his customers with free three-dimensional CAD drawings of new mail centers. The drawings, Sheaffer explains, allow him to show customers where the increased efficiencies lie and how they can save money by upgrading. Dealers can also educate customers at trade shows, which are great places to generate new business.

“Some customers use newly designed furniture to set up satellite mail areas where employees can pick up their own mail, and huge savings can result,” maintains Sheaffer. Other efficiencies can come from greater adjustability in the furniture and increased visibility in the mail center.

The result of these changes, says Sheaffer, is happier and more efficient employees. “You can’t imagine how workers perk up when the mail center is finally given a little bit of recognition. And, they don’t take as many breaks because the new furniture can mean they are no longer on their feet all day.”

Another key selling point from Sheaffer’s perspective is ergonomics. Mail center workers are particularly susceptible to repetitive stress injuries and particularly receptive to furniture that is not only “ergonomically correct,” but which can also contribute to better morale.

Today’s mail center furniture can potentially increase productivity, reduce employee fatigue, reduce overtime, reduce worker compensation costs, and allow for a reduction in employee turnover, all of which spell opportunity for dealers.

In the past, Sheaffer says, “the mailroom always had the image of being a place for entry level workers. It was always the home of cast-off furniture from other departments. Ironically, that image has helped create even more opportunity for dealers to modernize their customers’ mail centers.”

All in all, a case can be made that the lowly mailroom has emerged as the profitable mail center for office furniture dealers. In fact, today’s mail center may be the diamond we have all been looking for in this rough economy.

Mail Center Selling Points
According to Kathy Lundy vice president of sales at Charnstrom Inc., Shakopee, Minn., (www.charnstrom.com), there are a number of ways dealers can sell the concept of mail center enhancements to their customers.

1. Emphasize Cost Savings. A redesigned mail center and collection system can save your customers as much as 50 percent in labor costs.
2. Stress Efficiency. Distributing mail even one day sooner can help get invoices out faster, increase cash flow, and boost accounts receivable. Getting mail out on time also helps create happy customers.
3. Build in Add-Ons. A new postage meter requires an appropriate table. Every purchase has a corresponding need. Don’t forget to offer accessories.
4. Stress Security. Now more than ever, personal information must be kept under lock and key. Even a simple lockable mail cart may do the trick. Make your customers aware of their security responsibilities and the products you have to help meet them.
5. Be an Opportunist. Institutions with large turnover, such as hospitals and universities, have major challenges in mail distribution. Promote new mail options when visiting these customers.

Richard Berman (bermanri@us.ibm.com) is a freelance writer based in Chappaqua, N.Y. He specializes in articles related to office solutions and consults for Charnstrom Inc.

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by Richard W. Pavely, MSE, CQA

Without realizing it, in 1647, Baltasar Gracian may have been referring to contemporary mail services when he said, “We often have to put up with the most from those on whom we most depend.”  His 17th century sentiment has 21st century application regarding the relationship between mail service organizations and those who depend on mail services. And, one way to improve that relationship is by eliminating the source of some common complaints.

Drawing from my inventory of consulting assignments, which always includes some customer interviews, I’ve assembled the top 10 frequently asked questions or issues posed by core business operatives concerning mail services. The answers provided here may not apply to your particular situation; but then again, they could put you on the trail toward an improved relationship with those that provide this critical service.

1. I don’t agree with what the mail center is telling me about postal regulations on a particular topic. It just doesn’t sound right to me. How can I research the facts in this matter without causing trouble?  Without question, the very best source for definitive answers to postal regulation questions is the Domestic Mail Manual (DMM) and the International Mail Manual (IMM) published by the U.S. Postal Service (USPS). The DMM and the IMM are viewable and printable online from www.usps.com or as part of the Complete Postal Library (CPL) subscription from  www.windowbook. com. In addition, every postal business customer has an assigned USPS account representative. Although the account rep may be accustomed to dealing with your mail center, it’s possible for others to seek his advice and assistance on postal matters.
2. Every time the mail delivery person drives through our area with the mail cart, it sounds terrible. This incredibly common annoyance arises because the mail center supervisors rarely accompany the delivery clerks. If they did, they would readily conclude that the mail cart requires periodic maintenance, just like any other office equipment. The solution is as simple as a spray can of WD-40.
3. We keep getting mail for people who left the company years ago. Why can’t the mail center stop that from happening? The only effective way to stop unwanted mail is for some member of the receiving organization to take positive action to notify the sender. It doesn’t matter who writes the notification order, only that notification occurs. The receiving department administrator is the best choice for this task. World-class mail centers will perform this as a service, provided they’re given sufficient information and authority to act.
4. Every now and then, nearly every member of our department gets a certain catalog and many of the same conference announcements that I know the department members don’t read.  Isn’t there any way to stop that?  Here again, publishers will continue to blanket your department using the names they have on file until someone notifies them to the contrary. Clip the mailing labels, and send them along with a notification letter to the senders. Postage and printing costs are much higher now, so these notification efforts are achieving far greater success.
5. Why is it that whenever we get mail for people not in our department and we send the mail back to the mail center, about half the time it comes back again?  In the mail processing world, this is known as “loop mail.”  Looping often occurs with interoffice mail if the error associated with the returning piece isn’t highlighted in some way. If there are no distinguishing markings, the returning piece is again sorted along with new incoming mail and zooms right back to the wrong place. World-class mail centers provide special return envelopes to ensure proper attention, research, and redirection.
6. Why is it that we can’t place stamped personal mail in the outbox? Seems like a simple thing to me. It is simple, and many mail centers provide this as an extra service.  But, for those mail centers that don’t, the reasons for refusing are varied and justified. Top among them is a proper concern over meeting the department commitment to meter and submit all outbound company mail on time. Stamped personal mail requires an extra culling step, often occurring right at the busiest period of the day. Alternative solutions: Install a separate mail slot at the mail center for personal mail only. Or if your population is large enough, ask the USPS to place a blue collection box somewhere convenient.
7. How come, if the express carriers promise delivery by 10:30 a.m., we don’t get our packages until after 1:00 p.m.? As an individual receiver, you should understand that your incoming express item arrived along with scores or even hundreds of other equally important express items. The mail center is responsible for receiving, logging in, sorting, and delivering all the express items, a task that gets increasingly difficult with large organizations and widely dispersed groups of receivers. If your mail center receives more than 50 accountable items per day and they’re still relying on manual record keeping, then it may be time for them to upgrade to any one of several excellent cost-effective mail-tracking systems.
8. My pay stub arrives at home with an out-of-state postmark. Isn’t that a clear sign that the mail center is attempting to save money somehow while our checks get sent off to a consolidator?  An out-of-state postmark on mail sent to your home by your employer is not unusual and may be evidence of accelerated treatment instead of a suspected delay. If your company  is using a mail consolidator or presort service bureau, then it’s getting a postage discount. The service bureau is then sorting that mail to a finer level and probably submitting it at a higher level within the postal system. The finer sortation coupled with the bulk submission puts that mail on the fast track, as opposed to a routine submission to a local post office.
9. Every now and then, the newspaper that gets delivered to my boss early in the morning is really smelly. How could that happen?  This is no joke, it actually happens.  Smelly mail or more frequently smelly newspapers and packages occur as a result of having traveled in mail hampers shared with your local food service organization. Mail hampers, like the familiar white plastic mail buckets, are frequently misused, especially if they’re left unattended on loading docks. In a rush, food service personnel will commandeer large canvas, wheeled mail hampers to haul trash and garbage to the dock. Later, when that same hamper is properly used to transport mail, the odor is transferred.
10. I missed the last pickup a few days ago on an important outbound envelope, yet I was told that the last pickup would occur much later than it did. When I called the mail center, I was told something entirely different, although I didn’t speak to the supervisor. It doesn’t seem like there’s any consistency or official position on this important service offering. What is the correct action on a problem like this?  Every mail center should either publish or post the details concerning their service offerings, including pickup and drop-off times. Some mail centers are squeamish about committing to things in writing. Others publish the times but rarely adhere to them. If your mail center can’t or won’t define the service levels to be expected, then you’re both in trouble. Mail service manuals are widely used and are now being replaced by mail service Web pages on the internal network. This is an easy problem to solve, once the right level of management is aware of the condition

Another adage worth noting: It isn’t smart to bite the hand that feeds you. If you have issues with the mail center in your firm, don’t take it out on the mail clerks. They merely execute a service plan established by management and are usually unable to affect any changes in your behalf. It’s far better to deal with the supervisor or manager in private. One young and very busy associate at a major New Jersey law firm articulated a winning strategy for those situations: “Being nice to the mail center [staff] increases the chances for better service; being nasty only assures that your service will be marginal at best.”

Richard W. Pavely, MSE, is a Certified Quality Auditor (CQA). He can be reached at 973/989-0229 or via e-mail at rpavely@cmmcinc.com.

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By: Richard W. Pavely  

An empty mail center forgives all sins! Wittingly or unwittingly, this simple metric is being applied every day in mail centers all across the country. What it means is, no matter how you did it, by hook or by crook, if the mail center is devoid of incoming mail by the end of the day, then the mail center staff and supervision has completed a day’s work. But the empty mail center only tells part of the story. For example, it may ignore the fact that the sortation process was woefully inefficient-who cares how many misdeliveries actually occurred; so what if departments all over the building received unwanted mail; if the sort bins are empty, then we’re going home satisfied that we did our part.

Efficient traffic flow is the key to any mail center design. Because most people are right handed you want the incoming mail to enter on the left and move to the left. The mail dump table should be your first table. This is where the mail bags or trays are emptied for presorting or final sorting.

If you are sorting a large volume of mail then you should use a presort to speed up the final sorting operation. Many people think this is handling the mail twice which it is but if you are sorting to 100+ people or departments you ultimately save steps and time with a presort mail operation by grouping the mail into manageable sorting areas. Instead of walking a 20 foot sorting final sort area you presort the mail into an area that is 5 feet. This can be done by individuals, departments or floors whatever works for your mail facility.

The final sort area is where you need adjustable height mail sorting pockets and modular sorters that can be changed and rearranged when the mail center grows and expands. Steel durability is also a must in that even though it sounds like its just light mail the daily production of sorting large volumes of mail takes its toll on anything less that steel sorters and tables.

The outgoing mail area should be the last in this line of mail flow operations and again depending on the volume of mail it can be as simple as a table with a scale and meter or combined with an outgoing mail sorting system to reduce your postage by presorting or grouping the mail to one location or individual sales person for a less expensive mail rate or small UPS rate.

Most mail operations use these basic ideas when planning their mail center, but don’t forget courier services, mail distribution and pick up with a mail cart, small package incoming and outgoing and collating mass mailing. The mail center is no longer just sorting the mail. It a vital part of any corporation or government facility. Charnstrom has always had a saying “If you don’t think your mail center is important try closing it for a day”.

Charnstrom is new to blogging but would like everyone to share in our knowledge of mail center design, mail center security and mail center products. We look forward to keeping you up dated with links to new mailroom product releases, like our new electric mail cart; mail center show dates, where you can meet and learn from other mail center managers and mailing organizations that you can join and become active in.

We will make our blog a great source of information for mail center mangers, facility managers, architects, and anyone interested in improving their mail center and learning more about the mail industry