3 Ways to Lower Direct Mail Postage and Save Thousands
Quick Summary
Postage is the largest expense in most direct mail campaigns, and USPS rates keep rising. This post shares three practical ways to lower direct mail postage without hurting results. You will learn how smart mail lists focused on dense delivery areas unlock deeper USPS discounts, how PMOD, Drop Shipping and SCF Direct can offer near first-class speed at a discounted rate, and how to test the savings against your current list.
When considering a direct mail campaign, one of the biggest cost drivers is postage. And unfortunately, USPS keeps charging more to deliver–yikes! But it is not all doom and gloom; the good news is that you can lower direct mail postage with improved mail list building and smarter delivery choices. Here are three ways you can save.
1. Start With a Smart Mail List
The savings start with your mail list.
A smart mail list pulls a list together in a logical fashion to reduce your postage cost. Instead of scattering addresses across geographic areas, it focuses on the most geographically condensed list of households.
As a use case example: ABC Toyota dealership located in Salt Lake City Utah wants to run a promotion for nearly ended leases. Rather than doing drops with a random scattering of mailing addresses across the state, they can instead do relevant addresses within a set mileage distance from a specific zip code and move along drop by drop to different zip codes through Utah.
The more mail that delivers to a single area, the deeper the postal rate discount it can qualify for. A dense, like-kind list in one part of the map is the most economical to deliver.
Think of it this way. If your piece goes to everyone in a neighborhood, a carrier can deliver it all in a single day. That is saturation mail, and it carries the lowest postal rate.
If the post office has to split your mailing across many cities, it takes more time and costs more. Mail headed to towns and states nationwide costs even more because of the extra steps involved.
2. Finding the Most Cost Effective Mail Method for Your Campaign Needs
Most people know of two mailing options: Marketing Mail (also called bulk or standard mail) and First-Class Mail. Depending on your timeline to get your campaign in homes, there are in-between options that can save you from First-Class Mail pricing. Priority Mail Open and Distribute (PMOD), Drop Shipping and SCF Direct are some lesser known options that can provide an economical alternative.
Priority Speed at Discounted Rates: PMOD allows mailers to bundle mail that is going to a targeted area and send the pallet to the closest USPS destination post office. From there the mail pallet is disseminated. PMOD is ideal for geographically condensed mailing where timing is of utmost urgency.
Delivering on Timing: USPS drop shipping is a destination-entry strategy in which mail is transported directly to the USPS processing facility closest to your recipients, bypassing portions of the postal network. This option is typically used when you have enough mail to fill one or more pallets destined for a specific geographic region. By entering mail deeper into the USPS system, drop shipping can provide significant postage savings, faster delivery, and more consistent in-home dates, helping ensure your campaign arrives within a tighter delivery window
Deepest Postal Savings: SCF Direct leverages destination entry by co-mingling your mail with larger shipments destined for the same Sectional Center Facility (SCF). Because these regional hubs handle mail processing for surrounding local post offices, delivering directly to the SCF eliminates extra USPS processing steps and transportation expenses. This strategy unlocks strong postal discounts, though the consolidation phase means delivery times can be marginally longer than faster entry methods.
3. Start Today! Test the Savings Against Your Current List
Review your database to pull a smart mailing list and see your postal savings. Combine this with reviewing your mailing method to really see those extra savings! Do not just take our word for it–send Snap Pack Mail your mailing lists, and the team will review it for the most cost efficient postage option.
Then you can see whether the results meet or beat your current response rates.
Your next letter or snap pack mail campaign can reach homes or businesses within days, saving hundreds or even thousands of dollars in postage, while maintaining the efficacy of your direct mail campaign! Ready to see what you could save? Talk to Snap Pack Mail about a smart mail list for your next campaign.
FAQs
What is a smart mail list?
A smart mail list is pulled to be as economical to deliver as possible. It focuses on like-kind addresses in dense areas, which can qualify for deeper USPS discounts.
Why does mailing to a dense area lower postage?
Delivering many pieces to one area takes the USPS less time and handling. Saturation mail, which reaches most addresses on a route, carries the lowest rate.
What is USPS PMOD?
Priority Mail Open and Distribute (PMOD) is a USPS option where Marketing Mail trays are bagged and sent to the destination facility via Priority Mail. It offers near first-class speed at a discounted rate.
How long does PMOD delivery take?
PMOD averages 3 to 8 days to anywhere in the US.
What is USPS Drop Shipping?
USPS Drop Shipping, sometimes referred to as Destination Entry or Plant-Verified Drop Shipment (PVDS), is an efficient mailing approach where sorted pieces travel straight to the postal center nearest your target audience, bypassing your local entry branch.
What is SCF Direct?
A logistics method under destination entry, SCF Direct bypasses primary processing hubs by logistics-routing shipments straight to the regional Sectional Center Facility handling the target recipient area. Dropping mail further down the postal pipe bypasses extra handling steps, providing maximum savings while getting mail into mailboxes faster.
Can I test the postage savings before committing?
Yes. Share a recent mailing list with Snap Pack Mail and compare it with a list the team pulls, then run both to see the postage and response results.
