Postage Meters What To Look For When Purchasing Postage Meters © Business.com Media, Inc. All rights reserved. | 888.441.4466 2 Why Use a Postage Meter? 4 Convenience 4 Cost Savings 4 Flexibility Table of Contents 4 Accuracy and Monitoring 4 Evaluating Postage Needs 5 Outgoing mail volume 5 Types of shipments 5 Bulk mail campaigns 6 Postage Meter Supplies and Materials 7 Login/Password access 7 Saved “bulk” mailing settings: 7 Automatic Reset and Date Advance: 7 Advanced Supply Options 8 Mailing System Equipment 9 Postage Meter Base 9 Digital Scales and Other Equipment 9 Letter-folding machines - 9 Shrink-wrap machines 9 Bundling/bagging equipment - 9 Self-seal envelope “tabbers”- 9 Costs and Billing Options 10 Supply and Equipment Costs 10 Postage Meter Billing Options 11 Pay-as-you-go: 11 Pre-pay: 11 Tips for Buyers Error! Bookmark not defined. Let volume dictate your purchase. Error! Bookmark not defined. Consider online postage providers. Error! Bookmark not defined. Use a digital scale Error! Bookmark not defined. Postage Meters © Business.com Media, Inc. All rights reserved. | 888.441.4466 3 Use different sources for supplies. Error! Bookmark not defined. Last year, the United States Postal Service (USPS) processed 203 billion pieces of mail. That’s 667 million envelopes and packages each day- over 7,700 every second. A large percentage of this is from small business mailings- brochures, marketing materials, customer invoices- the mail is one of the fastest, easiest ways to connect with customers and clients. Using a postage meter is one of the easiest ways to streamline your mailing efforts. Postage meters work like an in-office shipment center- you can pay for postage, shipments, and even advanced mailing options such as receipt of delivery and COD verification without a trip to the post office or maintaining an account with a private shipping company. Most meters are equipped with postal scales, which weigh the outgoing mail and assess exact postage charges. The postage machine itself stamps and postmark mailings at your office, charging postage costs to your meter balance. Meter balances can be prepaid or billed at the end of a certain time period, usually monthly. Postal meters are the key component of any larger mailing system. The meter itself is leased, not purchased, and must be obtained from a provider approved by the USPS. Businesses often purchase additional equipment to work with the meter. Digital scales, shrink-wrap machines, and label printing equipment can turn your office into a full service mailing center- you can process mail more quickly and efficiently and save on postage and shipment charges. Before you begin shopping for a postage meter, it helps to know the basics of how a mailing system works. This guide provides you with the information you need- how to compare features, options, and billing plans, as well as a few tips to help you choose the best equipment for your business mailing needs. Postage Meters © Business.com Media, Inc. All rights reserved. | 888.441.4466 4 Why Use a Postage Meter? Using a postage meter is like having a shipment center right in your office. You’ve heard how big companies have “mail rooms,” right? Postage meters allow your office to have the same capabilities. On-site mail systems make sense for a variety of reasons: Convenience Using an on-site postage meter means that postage is available at all times. You can stamp and postmark shipments as needed without rushing to make it to the post office by 5, and can weigh shipments using your own postal scales, making adjustments to packaging methods on your own time. There’s no need to purchase stamps, wait in line, or trek heavy boxes in and out of your office in order to process mail shipment effectively. Cost Savings According to one postage meter company, statistics indicate that small businesses can save up to 20% of postage costs a year by switching to a postage meter. This is because most business owners and employees “round up” when stamping an envelope- and end up overpaying in the process. Since most postage meters come equipped with digital scales, you know exactly how much each piece of mail costs to ship, and will never overpay. You’ll also save on trips to the post office or expensive shipments using a private mailing company. Flexibility Postage meters allow you to pay for postage as you use it or as a monthly charge. This flexibility is especially helpful for businesses with large shipment volume or those that send bulk mail- in fact, a postage meter will allow you to take advantage of discount rates on bulk shipments, so long as you qualify for a bulk mail permit from the USPS. Accuracy and Monitoring Postage meters can be equipped with password-protected tracking features, where each employee, department, or even client is assigned a specific code for mailings. This way, it’s easy to monitor where your postage dollars are being spent. Businesses that bill clients for services such as postage also find this feature helpful. Postage costs can be calculated exactly- and budgeted for- when using a postage meter- a big Postage Meters © Business.com Media, Inc. All rights reserved. | 888.441.4466 5 improvement over purchasing stamps out of petty cash several times a month. You’ll also have access to the most current US postage rates- most meters allow you to download current information easily and quickly. Evaluating Postage Needs Businesses are different when it comes to shipping needs. Mail order companies that ship products daily will have different postage needs from smaller companies whose only regular mailing is customer invoices. For this reason, it’s a good idea to evaluate your postage needs before you begin comparing prices for postage meters or mailing equipment. Here are a few things to consider: Outgoing mail volume Your outgoing shipments are key in determining which meter equipment you need. Companies with large outgoing mail volume can especially benefit from using a postage meter- you’ll be able to mail large quantities quickly, without the need to stamp envelopes or take outgoing mail to the post office daily. You’ll also be able to take advantage of the large cost savings that can come with calculating exact postage for each mailing. Most businesses that mail frequently or send non-standard sized mail will “round up” for postage charges- these costs can add up, especially if you’re sending a large volume of outgoing shipments. Digital scales eliminate this possibility- you can use a scale to determine postage amounts down to the penny. Companies with smaller mail volume can also reap the benefits of using a postage meter- convenience and efficiency- but may not benefit as much when it comes to actual cost savings on postage itself. Types of shipments Businesses that send large or heavy packages often know how much time it can take to ship using an off-site shipment company. Maintaining accounts with private shipping companies can be equally inconvenient- you may be charged extra for packages that exceed weight or size requirements if you don’t have an in-office scale. Using a postage meter alleviates all of these concerns. Postal scales allow you to weigh shipments and determine postage charges yourself, and you can schedule shipment pickups regularly or in advance. Since postage is pre-paid, there’s no need to maintain an account with a third party shipper that you’re billed for later. Postage Meters © Business.com Media, Inc. All rights reserved. | 888.441.4466 6 Bulk mail campaigns If you send promotional materials, brochures, postcards, or any other form of “bulk” mail, you can obtain special discounted rates from the USPS. Using a postage meter, you can mail materials quickly and easily- and inexpensively. Keep in mind that you must apply for a permit for bulk mailings, and that you must meet certain requirements in order to qualify. Make sure you choose equipment and a billing plan that is in step with your shipment needs. Businesses with very large shipment volume may want to look for meter companies that allow a pay-as you-go option, in order to eliminate the need to constantly refill the meter. No matter what your shipping needs, postage meters provide the convenience and ease of an in-office shipping service make sure you take advantage of these benefits fully by purchasing or leasing the right equipment for your business. Postage Meters © Business.com Media, Inc. All rights reserved. | 888.441.4466 7 Postage Meter Supplies and Materials Postage meters themselves all have basically the same function- they stamp and postmark your mail at your office, eliminating the need for trips to the post office for drop offs or to pay for stamps or shipments. Postage meters are able to apply postage in the same way the USPS does. Postage meters can be used for all of the following:  Sending Registered or First Class mail  Generating a certificate of mailing (a receipt that shows the date and time of mailing)  Adding insurance to valuable shipments  COD (Collect on Delivery) for mailing merchandise to customers  Delivery confirmation The features of the meter itself can be integrated with any mailing system. Here are a few of the most popular features: Login/Password access: With this feature, users must enter a code before mail can be stamped. Codes can be assigned to different employees, different departments, and even different clients- a feature that is especially helpful for companies that bill clients for postage and materials. Login/password access also allows a business to track its postal expenses more accurately, in real time. Saved “bulk” mailing settings: If you regularly send a specific mailing (employee pay stubs, etc.) you can save the setting (number of envelopes, postage costs) for repeated use. Most meters that have postal scales attached will allow you to “save” settings for common mailing weights such as envelopes or brochures. Automatic Reset and Date Advance: Most postage meters are equipped with some kind of calendar this is how mail is postmarked. Make sure to use a machine with automatic date advance to avoid having to input date information yourself if you have a large volume of outgoing mail or if multiple employees will be using the machine. Most of the “features” people consider when they think of postage meters actually apply to the mailing system that the meter is a part of. Equipment used for folding brochures, sealing envelopes, and weighing packages (like digital scales) can be purchased separately, often for far less, once you’ve made your choice with respect Postage Meters © Business.com Media, Inc. All rights reserved. | 888.441.4466 8 to leasing a meter. Remember, meters are just the mechanism for calculating and applying postage costs- other mailing equipment can be acquired from other sources. The supplies and materials you should purchase depend on the mail you plan on sending. The most basic supplies required by postage meters are envelope sealer and printer ink. Both can be purchased from a postage meter vendor, or from a chain office supply store. Online retailers also sell postage meter supplies, often for far less than many postage meter vendors. If you plan on using the meter to send packages, you’ll probably need to purchase printable shipping labels. Most postage meters are equipped with postal scales, or digital scales that weigh shipments and calculate postage amounts. The label is printed, rather than stamped on the shipping container. Labels can also be purchased inexpensively from various sources. Many businesses choose to have mailing supplies such as ink, envelopes, envelope sealer, labels, and other materials delivered on a monthly or quarterly basis. This can be a cost effective arrangement if you’re certain you’re getting the best deal on the supplies. Make sure you shop around before committing to a supply contract in order to avoid purchasing more than you need. Advanced Supply Options If you’re planning to use the postage meter as part of a comprehensive mailing system, you’ll probably need more supplies than ink and envelopes. Letter folding machines, “tabbing” devices, and other equipment all require unique supplies to function. If you purchase specialized equipment, be sure to ask about maintenance contract and supply options. Postage Meters © Business.com Media, Inc. All rights reserved. | 888.441.4466 9 Mailing System Equipment The postage meter itself isn’t the only piece of equipment you’ll need if you want to send mail directly from your office. The value of postage meters is being the ability to send all outgoing mail- letters, packages, bulk and direct mail campaigns, and expedited shipping- from your own office location. In order to have these capabilities, you’ll need to invest in the appropriate mailing system equipment.pment Description Postage Meter Base The most basic type of mailing system- a postage meter base- is about as big as a fax machine. Outgoing mail in business-size (standard sized) envelopes is stacked in a feeder tray and “stamped” as it passes through the meter. Oddly shaped, oversized, or heavier mail cannot be fed through these basic machines- usually they are equipped with a sticker printer and postal scales for such mailings. Basic postage meters, or postage meter bases are typically inexpensive (several hundred dollars) and can be purchased used or refurbished. Digital Scales and Other Equipment If your business sends packages, non-standard mail (think square envelopes, brochures, etc.) or any other mailings that a standard postage meter base cannot accommodate, you have the option of upgrading to more advanced equipment. One of the most basic equipment components is a scale since postage rates are determined by the rate of a shipment, an accurate scale ensures that you never overpay by “rounding up” for postage costs. Digital scales are the most accurate, have higher weight limits, and do not need to be recalibrated often. The cost of a digital scale will depend on the weight of the packages you mail. Most smaller scales can be purchased for several hundred dollars. Letter-folding machines - Folds materials and brochures for more cost effective mailing, i.e., folding a standard sized sheet of paper into a tri-fold formation and placing it in an envelope. Shrink-wrap machines - Wraps goods in vacuum-sealed plastic for shipping. Bundling/bagging equipment - Feeds a stack or “bundle” of documents or items into an Envelope for mailing. Self-seal envelope “tabbers”- Used often in direct mailing campaigns that involve self-sealed envelopes, these perforate the paper for easy opening by the recipient. Postage Meters © Business.com Media, Inc. All rights reserved. | 888.441.4466 10 Ask postage meter vendors which mailing equipment they recommend, given the volume and type of mail you usually send. You always have the option of purchasing used or refurbished equipment, so long as it’s compatible with the meter system you plan to install. Costs and Billing Options Postage meters and mailing systems will vary in cost, depending on the equipment you choose, the volume of mail you send, and the billing mechanism you use for your meter. Supply and Equipment Costs Supplies, such as envelope sealer, ink, and other materials, can be purchased in bulk or automatically ordered from a mailing system vendor or other source. Mailing equipment that works with your meter, such as postal scales, collating or folding attachments, or bulk mailing accessories, can be purchased or leased. As a general rule, leasing works best for businesses that need highly specialized or expensive equipment, or equipment that needs to be updated or maintained frequently. Digital scales and other mailing equipment can also be purchased recycled. The lease of the postage meter itself is also a cost you need to consider. Meters are leased to businesses only through approved providers (see the USPS website for a complete list) or through independent brokers that carry these companies’ products. Most postage meter leases run less than $30/month. You’ll often need to sign a contract for the use of the meter for a certain period of time, though not all vendors require this. Make sure the contract clearly specifies your responsibilities as far as payment and keeping the meter “filled,” or any alternative billing arrangement. Keep in mind that this is just the cost of the meter itself- you’ll still need to pay for the actual postage necessary to send packages and mail. [...].. .Postage Meters Postage Meter Billing Options Since postage meters themselves are leased, not purchased, you’ll incur a monthly cost for the use of the meter itself You’ll also need to pay for the actual postage- rates for these costs are set by the US Postal service and are updated periodically Most postage meter providers offer “Pay-as-you-go” plans and “Pre-pay” arrangements Pay-as-you-go:... the meter tracks your postage use for a set time period (usually monthly) and you are billed when the period ends Most postage meter companies charge a fee for this service, usually less than $20 monthly Pre-pay: You can refill your meter (usually up to $1,000) online or by mailing a check to the USPS The USPS also allows automatic debit from a checking account or automatic deductions from your bank account... account to ensure your meter always has postage available Both options can work out well for businesses with different mailing requirements It’s a good idea to run down the actual numbers- calculate the monthly costs, including the meter lease plus any associated billing expenses (if using a pay-as-you-go-option), and compare this amount to the cost of using an off-site shipment facility Pre-pay options are... associated billing expenses (if using a pay-as-you-go-option), and compare this amount to the cost of using an off-site shipment facility Pre-pay options are typically better for businesses with smaller outgoing mail volume © Business.com Media, Inc All rights reserved | 888.441.4466 11 . assess exact postage charges. The postage machine itself stamps and postmark mailings at your office, charging postage costs to your meter balance. Meter balances can be prepaid or billed at. Cost Savings According to one postage meter company, statistics indicate that small businesses can save up to 20% of postage costs a year by switching to a postage meter. This is because most. Businesses that bill clients for services such as postage also find this feature helpful. Postage costs can be calculated exactly- and budgeted for- when using a postage meter- a big Postage Meters