It’s an inescapable fact: The cost of printing and mailing transactional communications – including statements, invoices, and policy notices – just keeps going up. In July 2024, the USPS increased the price of first-class mail by 7.8%, bringing the cost to 73 cents per piece. For businesses that send thousands or even millions of mail pieces annually, these increases add up fast.
To combat these rising costs, many organizations are turning to print and mail outsourcing services. By outsourcing to print and mail experts, you can reduce expenses by an estimated 30% while improving efficiency, compliance, and delivery accuracy.
The Hidden Costs of In-House Print and Mail
While some companies may think outsourcing is an added cost, managing print and mail internally is far more expensive than it may seem. Consider these key cost drivers involved with an in-house print and mail operation:
- Postage Costs: Prices continually rise over time, significantly impacting mailing budgets.
- Equipment and Maintenance: Printers, inserters, and sorting machines require major capital investment and ongoing upkeep.
- Labor Expenses: Skilled employees are needed to manage printing, inserting, sorting, and mailing.
- Material Costs: Paper, ink, envelopes, and other goods must be purchased regularly – and these costs are rising as well.
- Compliance Risks: Mishandling sensitive data in industries like healthcare and finance can result in costly fines, or even lawsuits.
By outsourcing print and mail, you eliminate the need for expensive equipment, reduce labor costs, and can take advantage of bulk postage discounts and advanced automation technologies.
Postage Optimization for Cost Savings
One of the biggest advantages of outsourcing print and mail services is leveraging postage optimization strategies that reduce mailing costs. Specialized print and mail providers like Nordis use sophisticated tools and industry best practices to ensure businesses get the lowest possible postage rates.
Address Hygiene and Return Mail Reduction
Before a letter is printed, address hygiene tools identify and fix bad addresses using USPS Intelligent Mail® barcode (IMb) technology. This reduces the amount of undeliverable mail – and thereby postage costs. If an address is incorrect, USPS sends a Change of Address (COA) or Undeliverable as Addressed (UAA) file, which updates the database in real-time.
High-Volume Presorting and Commingling
Print and mail partners presort mail by ZIP code before sending it to the USPS. Since the post office has to do less work, businesses qualify for discounted postage rates. Print and mail providers often offer commingling, which combines mail from multiple businesses into a single batch for even greater savings.
Mail Piece Standardization
Mailing costs increase when letters deviate from USPS’s preferred formats. Print and mail providers ensure your pieces adhere to standard sizes and weights, helping you avoid unnecessary fees.
Reducing Costs with Return Mail Services
Many businesses overlook the hidden cost of undeliverable mail. When you manage return mail internally, your team must handle logistics, retrieve undelivered pieces from the post office, manually process updates, and securely dispose of sensitive information – all of which add up in time and expenses.
When you outsource print and mail to a partner like Nordis, this process is streamlined by capturing and digitizing return mail data. Using barcode tracking, we identify undeliverable mail, generate reports, and upload the information directly into our CCM platform, Expresso® – so you no longer need to retrieve and sort returned pieces manually. This not only reduces administrative burden but also enables you to take action faster, such as reaching out to customers for updated address information.
You also gain peace of mind that sensitive data is disposed of properly with secure shredding and compliance-driven handling, reducing risks and costs associated with return mail.
The Role of Technology in Cost Savings
Beyond postage optimization, the best print and mail outsourcing providers deliver efficiency through next-generation technologies that feature automation. Here are just a few examples:
Customer Communications Management (CCM) Platforms
Forward-thinking providers offer their customers self-service software that streamlines the entire print and mail process. A CCM platform like Nordis’ Expresso® allows you to manage print, email, and text/SMS communications from a single system. This eliminates back-and-forth with vendors and enables you to make real-time edits to communications, reducing costly delays.
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Automated Print and Mail Workflows
Instead of manually handling files and approvals, print and mail outsourcing partners automate the entire process, ensuring compliance, accuracy, and speed while reducing labor costs.
Omnichannel Delivery Options
More customers are demanding digital communication, and this option also saves on postage while ensuring secure, trackable communications. Some print and mail outsourcing providers also offer omnichannel delivery options that include e-mail or text messaging. Keeping all your communication types under one system amplifies efficiency and reduces the need for disparate software platforms, further reducing costs.
Finding the Right Print and Mail Partner
To maximize cost savings, partner with a print and mail provider that offers the most effective cost-cutting solutions. A seasoned print and mail partner should offer:
- Bulk postage discounts and presorting capabilities
- Advanced CCM software for seamless communication management
- Automated address hygiene tools to reduce return mail
- Flexible print and omnichannel delivery options
- Compliance expertise in HIPAA, PCI, and SOC 2 Type 2 security
- Redundant facilities for emergency preparedness and disaster recovery
With rising postage rates and increasing operational costs, outsourcing print and mail services is a smart financial move for businesses sending transactional communications. By partnering with an experienced provider, you could save 30% or more by optimizing mailing costs and taking advantage of smart technologies. If your organization is still managing print and mail in-house, it may be time to explore outsourcing as a strategic cost-saving solution in 2025.
Have questions about print and mail outsourcing? Our team is ready to help – contact us today.
