How Mail Presorting Can Save Your Business Up to 20% on Postage Costs

Cutting Costs While Sorting Smarter – The Secret to Mailing Success

Have you ever wondered if there’s a way to cut down on your business’s mailing expenses? What if you could save thousands of dollars every year by just making a few simple changes to how you send out mail?

In this post, we’ll explore how presorting your mail before sending it can lead to significant savings on postage costs.

By the time you finish reading, you’ll understand the power of mail presorting and how it can boost your bottom line while streamlining your mailing process.

Quick Answer – How Mail Presorting Can Save Your Business Money
Presorting your direct mail can significantly reduce postage costs by doing some of the sorting work typically performed by the postal service. Businesses can take advantage of bulk mailing discounts that range from a few cents to several dollars per piece of mail.
By grouping mail by ZIP code and pre-labeling it with barcodes, businesses can save anywhere from 10-20% on postage. For example, a 1-ounce letter might cost $0.46 instead of $0.55, while a postcard might cost $0.285 instead of $0.35.

Volume Discounts – The More You Send, The More You Save

One of the biggest cost-saving benefits of presorting mail is tied to volume.

The USPS offers tiered discounts for larger batches of mail that are pre-sorted. This directly lowers postage rates. Businesses sending bulk mailings can benefit from discounted first-class mail rates, which can save a substantial amount per mail piece.

For example, presorted first-class mail rates can be as low as $0.46 compared to the standard rate of $0.55. When multiplied over thousands of mail pieces, these discounts quickly add up, making presort services essential for businesses conducting large direct mail marketing campaigns.

Minimum Volume Requirements for Discounts

To qualify for USPS volume discounts, businesses must meet specific minimum mailing requirements:

• First class mail: Minimum of 500 pieces.
• Standard mail: Minimum of 200 pieces.

Smaller companies can still benefit by using presort mailing services that combine mail from multiple businesses. This allows them to access volume discounts even if they don’t meet the minimum piece threshold on their own.

Workshare Discounts – Doing USPS’s Work to Save More

Presorting allows businesses to take advantage of workshare discounts, which reward companies for handling tasks the USPS would typically complete. This can be tasks like sorting mail by ZIP code or adding barcodes.

By preparing presorted mail ahead of time, businesses help streamline USPS processes, and in return, they receive lower postage rates.

These discounts apply to a wide range of mail, including presorted standard mail and presorted first class mail. Workshare discounts become especially valuable when combined with other strategies, such as commingling and drop shipping.

To fully maximize savings from workshare discounts, businesses should utilize advanced mail presort technology. This includes inkjet address personalization and barcode systems that ensure every piece of mail is accurately processed and meets USPS standards. Sorting to the delivery point ZIP code level can lead to deeper savings.

Commingling – Combining Mail for Maximum Savings

Commingling is an essential strategy for smaller businesses that want to access the same bulk mailing rates as larger enterprises.

By combining mail from multiple businesses into one large batch, commingling allows participants to meet the minimum volume requirements for presort discounts.

For example, a small business sending out 1,000 pieces of direct mail can combine its mail with that of other businesses through a presort mail services provider. This way, they all enjoy the cost savings of presorted mail without individually needing to send large volumes.

Commingling helps smaller companies qualify for bulk discounts and simplifies the mailing process by letting a third-party service provider handle the presorting, addressing, and submitting to the post office.

This reduces the burden on the mailing department and improves overall efficiency while ensuring access to the best mailing rates.

Postage Savings by Mail Type

The amount a business can save by using mail presorting varies depending on the type of mail being sent. Here’s a breakdown of typical savings:

• 1-ounce letters:
  • Standard rate: $0.55.
  • Presorted first class mail rate: $0.46.
  • Savings: $0.09 per piece.
• 3-ounce letters:
  • Standard rate: $0.85.
  • Presorted first class mail rate: $0.46.
  • Savings: $0.41 per piece.
• Postcards:
  • Standard rate: $0.35.
  • Presorted standard mail rate: $0.285.
  • Savings: $0.065 per piece.

For businesses sending thousands of mail pieces, these per-piece savings can lead to significant reductions in mailing costs.

Businesses that send very large mailings, such as marketing mail campaigns or monthly statements, can benefit from presorting even more. For example, a company sending 20,000 presorted first class mail pieces per month could save $1,800 or more annually just by using presort services.

Drop Shipping – Saving More by Reducing Handling

Drop shipping presorted mail directly to USPS distribution centers is another way to lower postage costs.
By sending mail closer to its final destination before handing it off to the USPS, businesses reduce the number of processing steps required, leading to additional postage discounts.

For example, mailing services that deliver bulk mail directly to local post offices or regional distribution centers can take advantage of reduced mailing rates for standard mail and first class mail.

This strategy is particularly effective for regional or national direct mail marketing campaigns, where distribution is spread across many ZIP codes.

Drop shipping is most beneficial when businesses are sending large quantities of marketing mail or time-sensitive materials that need to reach customers quickly. The process speeds up delivery times while lowering costs. This makes it an ideal option for businesses with a large customer base spread across the country.

Using Technology to Maximize Savings

Presorting Software and Automation

To ensure full compliance with USPS requirements and maximize savings, businesses can invest in advanced mail presorting software.

These programs help sort mail according to delivery point ZIP code, generate barcodes, and ensure address accuracy.

Tools like the coding accuracy support system (CASS) can verify addresses, reducing the risk of undeliverable mail and minimizing wasted postage.

Automated presorting solutions streamline the process. This allows businesses to quickly sort mail into categories that qualify for the best postage discounts.

By combining automation with high-speed sorting machines, businesses can further reduce their reliance on manual processing, saving time and money.

Tracking and Transparency Through Mail Optimization Software

In addition to presorting software, mail optimization tools offer valuable insights into mailing campaigns by tracking costs, delivery times, and address verification status. This level of transparency enables businesses to accurately forecast mailing expenses, improve budgeting, and refine their mail presorting strategy over time.

Outsourcing Presorting for Efficiency and Cost Savings

For businesses that lack the in-house resources to manage mail presorting, outsourcing to professional presort mail services can be a cost-effective solution. These services handle everything from sorting and addressing to completing USPS paperwork and ensuring compliance with postal regulations.

Outsourcing allows businesses to access the benefits of presorting without needing to invest in the equipment, staff, or expertise required to manage it internally. This is especially helpful for small businesses or those with inconsistent mail volumes.

Outsourcing presort services is often the best option for companies with smaller mailing departments or those that only send mail periodically. By partnering with mailing services that specialize in postal presorting, businesses can ensure that they take full advantage of postage discounts without overburdening their internal teams.

Let Lineage Help You Figure Out Your Presorted Mail

At Lineage, we specialize in securely managing your mailing needs from start to finish. Whether it’s presorting, processing, or ensuring compliance with strict regulations, Lineage Connect handles your entire mail stream so you can focus on growing your business with peace of mind.

Ready to optimize your mailing process and start saving? Fill out our contact form today or give us a call to learn how Lineage Connect can help your business achieve stress-free, cost-effective mailing solutions.