How Do Direct Mail Postage Discounts Work?

Direct mail postage discounts and USPS commercial mailing costs
There are several variables that can affect whether your mail qualifies for discounts.

Key Takeaways

  • Qualifying pieces of commercial direct mail can receive lower postage prices than non-qualifying mail.
  • Variables that could the direct mail postage discounts that you could be eligible include presorting, compatibility with machinery, mail piece characteristics, and where the mail enters the USPS network.
  • Mailing a large volume of mail doesn’t automatically mean you’re going to get a discounted mailing rate.


Introduction

When addressing a regular envelope, you are going to need a stamp. However, that gets more expensive when the number of pieces of mail that you’re mailing enters the thousands. Commercial postal pricing can help reduce that cost. While the mail class that you choose plays a part in how much you pay for postage, there can be available discounts past that. What these discounts are and how to qualify for them is going to depend on several factors.  


Why Does the USPS Offer Lower Commercial Postage Prices?

After being accepted by the USPS, every piece of mail then must be processed, sorted, transported, and delivered. There are ways that the mailer can help minimize or negate stages of that pipeline, such as presorting the mail. Many commercial postage prices reflect how a mail piece has been prepared, and how efficiently the USPS is able to process and transport it.


Do Bulk Mailings Automatically Get Direct Mail Postage Discounts?

While the USPS has defined minimum quantities and other eligibility requirements for commercial mail, the pricing structure isn’t simply “mail x number of pieces, pay this price.” For example, the size, shape, weight, and other physical characteristics of the mail piece can have an impact on how it is classified and the postage that it requires.


How Does Presorting and Automation Impact Direct Mail Postage Discounts?

Due to the mail having already been organized and sorted according to USPS requirements, qualifying mail could receive a lower postage price based on how it was prepared and sorted. The USPS uses automated equipment to help efficiently process the large quantities of mail that they receive every day. If your mail piece meets the automation requirements that the USPS has posted, your mail piece could qualify for automation prices.

There are several different variables that can impact automation processing, such as your mail pieces:

  • Size and shape
  • If your mail is a postcard or envelope
  • Thickness and weight
  • Address quality
  • Barcode
  • Physical characteristics

Just because your mail piece might meet one or two of these requirements, that does not automatically qualify you for direct mail postage discounts. For more information on mail piece design that could impact postage costs, read Geon’s article on mail piece design basics.


Can My Mail Piece’s Design Affect What Direct Mail Postage Discounts I’m Eligible For?

Yes, your mail piece’s design can affect what direct mail postage discounts you’re eligible for. Variables such as its size, shape, weight, and thickness can affect how the USPS classifies and processes the mail piece. By working with your lettershop or mail-service provider before your mail piece’s final design has been finalized, you can get a closer estimate of the final postage cost. This can prevent you from getting too far into the process and needing to undo work if the postage wasn’t what you were anticipating.


What Is Destination Entry?

Destination entry, or drop shipping your mail, refers to entering qualifying mail at a USPS facility that is closer to its final destination, rather than just entering the mail at any post office. As an example, rather than handing off all your mail at the nearest post office where the mail was printed and produced, a mail-service provider might transport portions of the mail closer to its destination before handing them over to the USPS. Due to the USPS having to transport the mail less of a distance, qualifying mail could be eligible for direct mail postage discounts based on destination entry prices.


What Are USPS Promotions and Incentives?

The USPS offers promotions and incentives at various times throughout the year for USPS Marketing Mail and First-Class Mail. Knowing what these promotions and incentives are could potentially help save money on postage. Because these programs can change throughout the year, mailers should check what current programs the USPS has going on or ask their mail-service provider whether your upcoming campaign could qualify for these savings. Take a look at the USPS Direct Mail Promotions & Incentives page here to see what current programs are going on.


Who Calculates the Postage for a Direct Mail Campaign?

While you can estimate what the total postage will be, a lettershop or a mail-service provider can also assist with estimating the total postage cost. These services can use postal software to process the mailing and get a realistic postage cost. Depending on your campaign, these services might be able to handle:

  • Address processing
  • Presorting
  • Barcoding
  • Postal documentation
  • Postage calculation
  • USPS entry

Because several variables affect postage, knowing what your final mailing list and mail piece specifications are can help to calculate an accurate postage cost.


FAQ

  • Q: Can I know exactly what postage will cost before my mailing list is ready?
    • A: While it is possible to estimate what postage will cost, knowing the exact price of how much everything is going to cost depends on the final mailing.
  • Q: Does the USPS offer discounts for a bulk amount of mail?
    • A: Qualifying commercial mail might be eligible for various direct mail postage discounts, but simply mailing a large quantity of mail doesn’t automatically result in a lower postage price. Pricing has many variables, such as the mail class, mail piece characteristics, presorting, automation eligibility, and other preparation requirements.
  • Q: Does my mail piece’s design impact my postage rate?
    • A: Yes, your mail piece’s dimensions (size, weight, thickness, etc.) all impact how the USPS classifies and processes your mail, therefore affecting postage.


Conclusion

There are several aspects that can impact the postage cost of your direct mail campaign, and what direct mail postage discounts you’re eligible for. Variables such as the size, weight, shape, thickness, and more of your mail piece can impact how much it is going to impact its postage, as well as how the mail is prepared, and where it enters the USPS network. Because of these variables, finding the exact price of how much it will cost you to launch your campaign is a difficult task. Knowing the pricing structure and if your mail piece is eligible for direct mail postage discounts can help save money if done correctly.

Return to Preparing Your Mail, or browse Geon’s Learning Center.

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