Reducing postage costs by re-evaluating packaging methods

By: Mark Haslan
April 13th, 2010

Small business owners could save money by re-evaluating their packaging methodsA direct mail marketing campaign is one of the most effective methods of ensuring that a message gets to the intended target. Of course, it’s also one of the more costly methods. From printing the actual brochure to paying for postage, a direct mail marketing campaign costs money at every step of the way.

In a recent article from DMNews.com, Elizabeth Lombard, national postal carrier manager for the learning and performance group at Pitney Bowes Business Insight, gives some advice to small business owners that struggle with keeping their direct mail marketing campaign on budget. These methods can be used to reduce operational costs without sacrificing effectiveness, she says.

Almost a quarter of addresses listed in an business’ database have a discrepancy that could potentially prevent a message from being delivered. According to Lombard, this issue can be minimized by using National Change of Address Link. NCOALink keeps track of more than 150 million permanent change-of-address records filed in the U.S. in the previous 48 months. By using NCOALink, a business can greatly reduce the number of undeliverable-as-addressed returns and improve delivery times significantly.

Reducing the steps taken by the postal office to handle a package may also help improve delivery time. Including an automated barcode on a package will do just that, and may also save 20 to 25 percent on postage costs. Reshaping a package may also help. For example, a flat piece of mail could be folded in half, making it the standard envelope size. By making sure a package is a standard size that can be put through a machine, a business owner can make sure that their message doesn’t need any special handling.

Reshaping a package into a more standardized form also carries the benefit of driving down postage costs. By incorporating the automated barcodes and downsizing the packaging to a more standard size, a company could save an extra 40 to 47 percent on postage rates, says Lombard.

If a package doesn’t have a specific delivery date, changing the mail class is another reduce postage costs. Sub-classes of mail, such as media mail or bound printed mail, are particularly inexpensive.

Cynthia Williams, also from Pitney Bowes Business Insight, advocates purchasing business mailing lists to reduce misdirected mail. In a recent article from DMNews.com, Williams says that using business mailing lists will save a business money and improve customer satisfaction.

Related posts:

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  3. Marketers most worried about rise in postage prices

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