Direct Mailing? Stop Paying $0.49 For Postage!

An Introduction to the Permit Imprint

If you've done any sort of direct mailing, even 100pcs, you know you largest cost is likely the postage @ $0.49 per first class stamp. I had recently lowered my printing cost to less than 5.6 cents per piece for 6x11 postcards, but HAD to find a way to lower the almost half-dollar stamp cost - especially since the majority of those just ended up in the trash.

In comes the Permit Imprint

Take a look at the next piece of junk mail that fills your mailbox. See the square in the stamp area that says PRSRT MKT or PRSRT STD? Depending on how they entered that letter into the USPS system, the mailer likely saved 27+ cents per piece, plus the time saved not sticking a stamp on each piece. That square is what the USPS calls the Permit Imprint Indicia - they allow you to presort your mail into trays, deliver to the right postal station, reduce your postage for doing so and deduct that postage from your account.

How to Get The Discounts

Basically, for every step you perform for the USPS they'll give you a discount. The first discount comes from the difference of First Class (regular stamp) to Marketing Mail (previously Standard Mail). Standard mail takes long to reach the destination, so its discounted. Then, you can receive additional discounts for sorting your mail into trays that can be delivered to specific post offices serving a specific 5 digit zip code, the first 3 digits of a zip code, an area distribution center, and finally mixed distribution centers. If you are hitting a specific zip code hard, you can also get heavily discounted for sorting in the order the carrier walks or for just sorting your trays by route. Note however that each of these levels has minimums; most of those that have affected me have been around 150pcs.

Besides not paying full postage, you'll save hours on large mailings by not having to individually stick a stamp on each piece. You'll print or stamp your Permit Indicia on each letter in the stamp space noting the service level, US Postage Paid, City/State where your permit is held, and your permit #.

How Business Mail is Prepared/Entered

Once you get your permit and mail prepared, you have to bring it to your local Business Mail Entry Unit (BMEU). There, they can provide you with trays to properly sort your mail so you get the lowest postage, like all mail with the same 5 digit zip in the same tray. Surprisingly, despite the retail side of USPS's customer service reflecting the DMV, the BMEU (at least here in Chicago) is extremely helpful and knowledgeable from the initial permit signup to the mail entry. Your postage cost will be deducted from your account that you pay at your main post office after the weight, class, and sorting is verified, and off goes the mail. The cost for the initial permit setup was around $225, which paid for itself in a single 1500pc mailing. If you upload your mailing list to the USPS business portal, it will generate labels for you to use with an Intelligent Mail Barcode which allows you to waive the $250ish annual fee. That same site will also put the labels in order based on what tray they need to be in for easy sorting. The IMB does get you a discount as well, but its negligible at the qty I mail (I think around $0.00158/pc) - the biggest savings is not paying the annual fee.

Downsides

Some people believe that having the real stamp on the letter yields a better response rate. I agree, but I haven't experienced anywhere near double the response rate which is close to what I save in postage. A company who sends 100k or 1MM pieces could likely clear this up, but at this point I have yet to experience a drop in response rate that would offset the time and $ savings by far.

How To Get Started

Visit your local BMEU: https://ribbs.usps.gov/locators/find-bme.cfm

As I previously stated, at least at my local BMEU, the staff was extremely helpful and patient, so don't be afraid of walking in as a beginner and asking basic questions to understand more. The USPS documentation online unfortunately is worse than the IRS with all of their code references and regulations, so your best bet is to visit your BMEU and speak with the specialist there. In my first mailing with my permit, I made all sorts of mistakes and at first was told to go back to the "mailer", but after some work we (the USPS employee and I) were able to work everything out and get my letters on their way.

Of course this is just an introduction to the Permit Imprint and standard mail presort savings, but hopefully if you are sending at least a couple thousand pieces of mail this has motivated you enough to investigate more!