To Cut Postage Costs for the 2009 USPS Postage Rate Increase

Helpful tips for small business owners to lower mailing and shipping costs.

By Holly Ocasio Rizzo, Writer and editor, Holly Ocasio Rizzo

At first, cutting postage costs for your business seems like saving coins in a jar. But if you look more closely at how you handle postage, the savings throughout a year can be substantial.

Postage costs can be reduced in several key ways:

Ensure your mail reaches the correct destinations. Clean mailing lists, bar codes and addresses including ZIP+4 codes all contribute.
Carefully choose what you mail. Choose 20- or 24-pound stock over heavyweight paper, Tyvek envelopes over manila, and certain sizes of envelopes to save.
Take advantage of U.S. Postal Service options that especially benefit businesses, such as bulk mail and online postage.
Try postcard mailings – they're cheaper than letters.

Practice good

Cleaning your database of undeliverable addresses, and update your mailing list regularly. You can do this in-house or get help through software and companies providing list-maintenance services.
Try: Software, such as Address Object from Melissa Data Corp., catches incomplete or inaccurate addresses. The company also offers mailing lists and move update services.

Print bar codes on your mailing labels

Called a "delivery point barcode" (DPBC), it automates the process of telling the post office where to deliver the mail. The code must be clean and straight to be effective.
Try: AccuZIP6 software, available from Mail Merry Systems Inc., not only corrects and standardizes deliverable addresses, but it also adds ZIP+4 and delivery point barcodes to each one.

Use the U.S. Postal Service's mailer-design consultant

Most central post offices have a "mail piece design analyst" who can help determine a cost-saving size before you print your mailer. Odd shapes and certain sizes can't be processed by machine, meaning they not only won't be eligible for lower rates but also may be subject to a surcharge.
Try: U.S. Postal Service offers tips for shapes and sizes; find your mail piece design analyst by entering your ZIP code here.

Convert first-class to standard mail

The standard mail rate is available for business mailings of at least 200 pieces and 50 pounds. The rate for each piece depends on the ZIP code.
Try: The Postal Service offers an online calculator for mail that can and cannot be sorted by machine. Find the rules for standard mail here.

Use bulk mail

Rates are determined by weight, distance and ZIP code. If you're sending out a newsletter or sales letter, you'll save considerably.
Try: The Postal Service follows strict rules on bulk mail and may even open a mailer to check that you're sending what you say you're mailing. Here's where to find your nearest bulk-mail handling office.

Print stamps in your office

Time is money, and you can save time with online postage and shipping.
Try: The Postal Service's Click-N-Ship pages tell you how to set up, pay for and print online postage. Stamps.com, a company approved by the Postal Service, lets you print stamps from your computer.

Get a simple postage scale

Way too many small businesses overpay postage because they try to guess weights rather than using a postage scale.
Try: Get scales and other postage gear from Pitney Bowes.

Rather than mailing all your newsletters, offer customers an e-mail option - you'll save on postage and printing.
Split the contents of your newsletter, and the costs, with a business targeting similar customers.
Before mailing anything, consider whether it could be sent instead by fax, phone or e-mail.
If you use lots of the same sizes of envelopes and boxes, buy in bulk.
When possible, use padded envelopes instead of boxes with packing material.
Include invoices with packages rather than mailing them separately.
Mail sooner rather than later to avoid using overnight delivery.