26th Edition - Back to Basics
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Smart Direct Mail Spending

Written by: jkaplan

Direct mail is a much cheaper than a full-blown branding and general advertising campaign. Here are some ways to cut your costs and mail smarter!

Reduce the number of pieces

You can cut costs by mailing fewer pieces (a letter and a brochure with attached order form and mailed). Fewer pieces means lower printing and lettershop costs (lettershops stuff the envelopes, affix postage, and take the mailing to the post office). A smaller, lighter package will also require less postage.

Start Small

Trying something new? Start with a smaller mailing, then mail again, in larger quantities, to the lists that worked best.

Change The Physical Size of Your Mailing

Larger mailings will cost more. For instance, an 8 1/2 x11 10-page brochure on thick paper will cost more to print and mail than a 6×9 6-panel self-mailer. Talk to your printer before you finalize your design. It’s a lot cheaper to change the design before they start!

Get Volume Printing Discounts

Use a printer that combines (or “gangs up”) different print jobs from multiple customers. You will lose some flexibility (there will be fewer choices of paper size, type, and quality), but you will gain full-color printing and significant volume cost savings.

Regardless of which printer you use, If you think you may need a few extra, order them. Much of the cost is in the initial setup, so doubling the quantity won’t double the price.

Update Your List Regularly

People move, change jobs, and change their names. The more old data and errors on your list, the more money you’re wasting on mail that won’t get delivered. If your list is clean, you’ll have fewer errors and duplicates. If you rent or buy a list, check to see when it was last updated. No list is 100% perfect, but return rates should be about 2%.

Don’t Pay Retail for Postage

Paying 41 cents is like paying full retail. And, the best part is, you don’t have to wait for a sale!

There are three basic kinds of mail, two of which you probably know about: first class and standard (or bulk mail). Both have discounts based on volume (how many pieces you send), density (how the addresses are concentrated together) and whether you are a nonprofit or a commercial business. There’s also first class pre-sort, which goes as quickly as regular first class, but costs less because you sort it first (in zip code order).

Five Ways To Cut Your Postage Costs

1) Put the addresses in zip code order, lowest to highest (this is called pre-sorting.)

2) Send at least 200 pieces for bulk mail, 500 for first class pre-sorted mail. First class pre-sort is cheaper than regular first class.

3) Weigh it; it should be under an ounce for first class, under 3.3 ounces for bulk.

4) Check the dimensions (for instance, a letter size envelope is OK, but a square or a 9 x 12 flat size will cost you more money).

5) If you use a self-mailer (no envelope), fold it with the crease on the bottom, and the wafer seal (a sticker to hold it closed) on the top so it will slide smoothly through the post office’s machinery.

Before you start, check with a lettershop/mailing house for detailed information on addressing formats, size limits, and postal templates. You can save up to 40%!

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