Work Smarter Not Harder with Postalocity!

Work smarter not harder with Postalocity! A quick lesson in how postage is calculated, then we’ll get to the good stuff. Let’s keep it simple and stick to mail that is packaged in a #10 envelope.

When using a postage meter, a metered stamp costs $0.51 (versus $0.55 for a physical stamp) and that will cover your postage costs if the piece weighs less than one ounce. If you’re using regular copier paper and a basic #10 envelope, you can probably get away with four pieces of paper, maybe five. If the letter weighs more than one ounce, your postage meter will calculate how many additional ounces you must pay for. Each additional ounce will cost $0.20. If your letter weighs two ounces, you will spend $0.71.

If a business needs to mail 100 statements to their clients, for example, and each statement weighs two ounces, their cost would total $71.00. (Not that you needed me to do simple math for you, but hey, I like to go above and beyond.) That’s quite the expense just to send statements and we’ve not even touched on how much costs they have in paper, envelopes, printing, and how much they paid an employee to fold them, stuff them, and seal each envelope.

Consider this scenario:

• Each of your 100 statements is a 6 page document, single sided, printed in black ink.
• A typical piece of paper costs around $0.01 per page.
• A #10 security envelope costs around $0.12 per envelope.
• Your office printer costs around $0.02 per page.
• Susie makes $18.00 an hour and it will take her approximately three hours to print, fold, insert and seal 100 statements. That calculates to Susie adding an additional $0.54 per statement to the grand total.

Tack on your postage cost of $0.71 per piece (since it weighs two ounces) and you’ve got a whopping $1.55 on each statement before it even leaves your office. You should also add in how much it costs to rent that postage meter. Oh, and how much does the lease cost on your copier? Ope! It has a service contract too. Shoot, the postage meter has a service agreement on it as well….. I think you get the picture I’m painting here. At minimum, you’re spending $155.00 just to get your statements to the Post Office for delivery.

It all adds up!

Using your free account with Postalocity, the same exact document would cost you $0.96, First Class postage included. There are many ways we are able to offer such cheap prices. Firstly, the USPS gives us the second ounce for free and we pass that directly on to our customers. Our printers are large, industrial printers that have far lower cost of production. We buy paper and envelopes is mass quantity, therefore getting much lower prices on consumables. Get rid of your mailroom completely and let us do the hard work for you for a fraction of the price.

*this article reflects pricing in 2021 by the USPS

By Nikki Stockham, Postalocity’s Client Onboarding Expert / Published JANUARY 19TH, 2021

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