If your business regularly sends out a large volume of mail, you know that postage costs can quickly add up. While stamps may be convenient for small batches, many savvy business owners are turning to metered mail to save both time and money on their mailing needs.
But what exactly is metered mail, and how does it work with the United States Postal Service (USPS)? In this comprehensive guide, we‘ll break down everything you need to know about USPS metered mail. As a picky retail and consumer expert, I‘ll share insider tips to help you evaluate if metered mail is right for your business – and if so, how to maximize your savings and efficiency.
What is Metered Mail?
Metered mail refers to any mail piece that has postage printed directly onto the envelope or shipping label using a postage meter machine. Instead of applying traditional adhesive stamps, the postage meter prints a special mark, known as an indicia or postage imprint, that indicates the exact amount of postage paid for that item.
Postage meters are available for lease from authorized providers. Currently, there are five companies approved by the USPS to lease postage meters:
- Pitney Bowes
- Quadient (formerly Neopost)
- FP Mailing Solutions
- Data-Pac Mailing Systems
- Hasler
To use a postage meter, you first set up an account with a provider. The meter connects to your account, and you pre-pay for postage. As you print shipping labels or envelopes, the meter deducts the postage amount from your balance. It‘s a "pay as you go" system, similar to adding minutes to a prepaid cell phone.
Metered Mail vs. Stamps: What‘s the Difference?
For the average consumer, traditional adhesive stamps are the most common way to pay for postage. You simply purchase a book or roll of stamps at the Post Office or another retailer and affix them to your letters or packages before dropping them in the mail.
In contrast, metered mail requires special equipment (the postage meter) to print postage directly onto each mail piece. There‘s no need to deal with physical stamps. Here‘s a quick comparison of the two methods:
| Factor | Metered Mail | Stamps |
|---|---|---|
| Equipment required | Postage meter (leased) | None |
| Payment method | Pre-paid balance on meter | Pay as you buy stamps |
| Pricing | Discounted commercial rates | Standard USPS rates |
| Appearance | Professional, customizable indicia | Traditional stamp designs |
| Convenience | Print precise postage 24/7 | Must visit Post Office or retailer |
| Reporting | Detailed usage tracking available | Manual recordkeeping |
As you can see, while stamps may be ideal for individuals, metered mail offers some distinct advantages for businesses, which we‘ll explore in-depth.
Metered Mail Costs & Fees
One of the main reasons businesses opt for metered mail is the opportunity to access special discounted postage pricing. These "commercial base" rates are lower than standard USPS retail rates.
For example, here‘s how metered mail stacks up against stamps for First-Class letters as of 2022:
| Service | Stamps (Retail) | Metered Mail (Commercial Base) | Savings with Meter |
|---|---|---|---|
| First-Class Letter (1 oz.) | $0.58 | $0.53 | $0.05 per letter |
| First-Class Letter – additional ounce | $0.20 | $0.20 | – |
| First-Class Flat/Large Envelope (1 oz.) | $1.16 | $1.07 | $0.09 per envelope |
Source: USPS Postage Rates
As you can see, metered mail provides a savings of 5-9 cents per First-Class letter or flat. While that may not seem like much, it can really add up if your business is sending hundreds or thousands of mail pieces per month.
Keep in mind that with metered mail, you will have some additional costs to factor in:
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Postage Meter Lease: Expect to pay anywhere from $20 to $200+ per month to lease a postage meter, depending on the model and features. Some providers offer lease discounts for longer contract terms.
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Maintenance & Repair Fees: Some providers charge a separate fee for maintenance, software updates, and repairs on your leased meter. Others include this in the base lease price.
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Insurance: You may want to pay for insurance on your leased meter equipment to cover any damage or mechanical issues.
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Supplies: Thermal tape, ink cartridges and other printing supplies are an additional expense to consider. However, you‘d also have to purchase stamps as supplies.
Even with these extra costs, many businesses find that metered mail still provides significant savings and value compared to stamps. It‘s all about finding the right solution for your budget and mail volume. We‘ll dive into more details on choosing a postage meter later on.
Benefits of Metered Mail for Businesses
Now that you understand the basics of how metered mail works and what it costs, let‘s take a closer look at the key benefits for businesses.
1. Significant cost savings on postage
As we saw in the price comparison table above, metered mail offers discounted rates compared to retail stamps, especially for First-Class letters. These savings can be significant over time.
For example, let‘s say your business sends about 250 First-Class letters per month. With stamps at $0.58 each, you‘d spend $145 on postage. By switching to metered mail at $0.53 per letter, your postage cost drops to $132.50. That‘s a savings of $12.50 per month, or $150 per year. The savings are even higher if you send a larger volume of mail.
2. Increased efficiency and productivity
One of the biggest advantages of using a postage meter is the time it saves in preparing your outgoing mail. With a meter, there‘s no need to manually apply stamps to each individual envelope. Simply insert your mail piece into the meter, and it will print the correct postage and seal the envelope in seconds.
This automation can be a huge productivity boost, especially if your business sends a large batch of mail at once. For example, instead of spending an hour applying stamps to 200 letters, you could process the same stack in minutes using a meter. That frees up more time to focus on other important business tasks.
Many postage meters also have built-in scales to help you calculate the precise postage based on the weight of your mail piece. No more guessing or overpaying for extra stamps!
3. Professional branding and image
An often-overlooked benefit of metered mail is the marketing and branding opportunity it provides. Postage meters allow you to customize the indicia that‘s printed on your envelopes. You can add your company name, logo, website, or a short promotional message alongside the postage.
Image Source: L-Email LTD
This subtle touch presents a polished, professional image to your customers and helps reinforce your branding with every piece of mail you send out. In a crowded marketplace, that extra brand visibility can make a big difference.
4. More control and visibility over postage spending
Another key advantage for businesses is the ability to track and control your postage spending more effectively with a meter.
Postage meters provide detailed reporting on your postage purchases and usage. You can generate reports by time period, department, user, or cost account. This allows you to monitor your expenses more closely, identify any waste or abuse, and accurately charge back postage costs to clients if needed.
Some meter providers even allow you to set spending limits and restrict access with PIN codes, giving you tighter control over your postage budget. That extra oversight and clarity is very valuable compared to just buying stamps as needed.
5. Convenience of online postage and reporting
Finally, today‘s postage meters offer a very convenient, flexible way to manage your mailing needs. Most connect to the internet, allowing you to download postage funds and access your account online anytime.
You can purchase postage 24/7 from your computer or smartphone, without having to visit the Post Office during business hours. As long as your meter has sufficient funds, you can keep printing uninterrupted.
Many meter vendors offer companion mobile apps and online dashboards where you can view reports, track packages and manage account details. These digital tools simplify the process and help you stay organized on the go.
How to Choose the Right Postage Meter
Interested in giving metered mail a try? For the best experience, it‘s important to choose a meter and provider that fits your budget and mailing needs. Here are some steps and factors to consider:
1. Evaluate your requirements
Start by taking stock of your typical monthly mail volume and composition. How many letters and packages do you send? What classes of mail do you use most (First-Class, Priority, etc.)? Do you need any special services like Certified Mail? Getting a handle on these details will help you determine what meter features you need.
2. Research your options
Next, check out the key postage meter providers to see what solutions they offer. The major options include:
- Pitney Bowes: The oldest and most well-known provider, offers a range of meters for low to high-volume needs
- Quadient: Known for their user-friendly, modern meters and analytics tools
- FP Mailing Solutions: German-engineered meters with a reputation for reliability
- Hasler and Data-Pac: Good options for simpler, more economical meters
Visit their websites to compare available models, features and pricing. Some key aspects to investigate:
- Supported mail classes and services
- Processing speed (pieces per minute)
- Included weighing capacity
- Envelope thickness/size accommodation
- Integrated scale, label printer, sealer, etc.
- Touchscreen display and controls
- Wireless or wired connectivity
- Accounting and reporting capabilities
- Service and support options
- Lease terms and total cost of ownership
3. Request quotes and demos
Once you‘ve narrowed down your options, contact the meter providers to request detailed lease quotes and schedule product demos if possible. Ask lots of questions and read all terms carefully.
Ideally, you want to find a reliable, full-featured meter with the lowest total costs and fees over the course of the lease. Don‘t forget to factor in any add-on services, insurance, and supplies you‘ll need.
4. Apply for USPS meter license
Before you sign on the dotted line with a meter provider, you‘ll need to get approval from USPS to use a meter. Your business must apply for a license using PS Form 3601-A at your local Post Office.
This is basically a review process where the USPS verifies that you meet all the eligibility requirements for a meter:
- Valid business name and address
- Appropriate meter model for your needs
- Secure operating location for your meter
- Proper record-keeping practices
Once approved, you‘ll be issued a meter license number and can finalize your lease agreement with the provider of your choice.
5. Train employees and implement
After receiving your meter, work with your provider to set up the equipment and load the initial postage funds. Make sure to train any employees who will use the meter on how to operate it correctly, interpret reports, and follow USPS guidelines.
It‘s a good idea to audit your postage spending and volumes after the first couple billing cycles to make sure you‘re seeing the savings and ROI you anticipated. If needed, don‘t hesitate to follow up with your provider if you have any concerns or issues.
Expert Tips to Maximize Metered Mail Savings & Efficiency
To wrap up, I want to share some expert tips and best practices to help your business get the most value from metered mail:
- Take advantage of presort discounts. When sending large batches of mail, sort your pieces by zip code before metering to qualify for special discounted postage rates.
- Ensure addresses are complete and accurate. Incorrect or outdated addresses can result in returned mail and wasted postage. Routinely process your mailing list through the USPS address verification service.
- Regularly audit your postage account and expenses. Keep a close eye on your postage spending and track key metrics like cost per mail piece and total monthly expense vs. budget. Investigate any sudden spikes or anomalies.
- Negotiate your lease terms. Don‘t just accept your meter provider‘s first offer. Contract length, monthly rate, accessories, add-on services, and payment schedule can often be negotiated for a better deal.
- Take care of your meter. Protect your meter from damage, and notify your provider immediately if you notice any defects or malfunctions. Keep your meter clean, store it securely, and send it in for routine maintenance as recommended by the manufacturer.
- Keep up with USPS regulation changes. The USPS periodically updates requirements and guidelines for metered mail. Stay informed by regularly reviewing the Domestic Mail Manual and subscribing to USPS news bulletins.
- Re-evaluate your needs annually. As your business grows and evolves, your metered mail needs may change significantly from year to year. Consider conducting an annual review to make sure your current equipment and lease still makes sense.
The Bottom Line
Metered mail offers businesses a convenient, cost-effective, and professional alternative to traditional postage stamps. By making the switch, you could save hundreds or thousands on postage annually while also boosting your team‘s productivity and strengthening your brand.
However, a postage meter may not be the right fit for every business. If you send a very low volume of mail or your average mail piece weighs more than a few ounces, you may find that other methods like stamps or online postage labels are more economical.
The key is to carefully assess your requirements, crunch the numbers, and compare solutions from multiple providers. But if your mailing needs and potential savings align, a postage meter can be a smart long-term investment in your business operations.
Still have questions about choosing or implementing a postage meter? Feel free to reach out to your local USPS business mail specialist or contact an authorized postage meter vendor for more guidance.
Here‘s to happy – and cost effective – mailing!
