Did you know you can lower your postage costs by taking advantage of work share discounts offered by the US Postal Service? Today we’ll talk about how the Presort Discount rewards you for sorting your own mail. And then, how the Drop Ship discount rewards you on top of it for transporting your presorted mail deeper into the postal system. In the last video you learned about presorting mail into bundles of at least 10, down to the lowest possible level on the hub and spoke system. Now, we’ll look at how the US Postal service applies discounts to these presorts. When it comes to the presort discount, the finer the level the bundles are sorted to, the more money you save. The presort discount applies even if all of the bundles enter the postal system at a local post office. From here, the postal service would need to transport the bundles to an NDC and then deliver them further down the hub and spoke system to the appropriate hub. But what if, instead of dropping off the bundles at a local post office, the printer delivered all of these bundles directly to the appropriate SCF? This is called Drop Shipping, and it saves the USPS
(or United States Postal Service) a lot of transportation costs. For this they provide an additional work share discount. The further down the hub and spoke system you drop ship the less postage you pay. But in order to qualify for the drop-shipping discount, mail bundles must be collected into pallets or sacks. So, if you don’t have enough bundles to fill a pallet or sack at the DDU level, you need to step back and add those bundles to a container going to the SCF drop point. It may only save pennies per flat, but when you’re mailing millions of catalogs
all across America this can really add up. So much so, that the postage savings offset the transportation costs to all of these destinations. That’s why presorting and then drop-shipping your mail can vastly improve the efficiency of your mailing operations and significantly lower your postage costs. To learn more about mailing list performance, check out our next video – or, if you have a question, send Quad/Graphics an email.