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Postal Discount Basics
The cost to mail a two-ounce letter can range from 63 cents (or more) to as little as 12.7 cents — a difference of over 50 cents per piece — so it clearly pays to learn more about postal discounts.
Basically, there are four ways in which you can lower your postage costs.
The U.S. Postal Service provides a wealth of information, including an online publication titled An Introduction to Mailing for Business Organizations. As a service to our customers, we’ve highlighted key information below.
Choosing a Mailing Service
The shape and content of your mail can determine which mailing services are available to you.
| Dimensions, up to: | Postcards 4-1/2×6” | Letters 6-1/8×11-1/2” | Flats 12×15” | Parcels Varies |
|---|---|---|---|---|
| First Class | X | X | X | X |
| Standard Class | X | X | X | X |
| Periodicals | X | |||
| Bound Printed Matter | X | X | ||
| Media Mail | X | X | ||
| Parcel Post | X |
First Class–1 to 3 days
The following materials must be mailed as First-Class Mail:
- bills and checks
- statements of account
- handwritten materials
- typewritten materials
- personal correspondence
Generally, Standard Mail can also be mailed at First-Class Mail rates.
Standard Mail–2 to 9 days
Often includes materials such as:
- circulars
- advertisements
- solicitations for donation
- newsletters
- merchandise
- printed matter not required to be mailed as First-Class Mail or Periodicals Mail
Periodicals–1-7 days
Authorized periodical publications such as:
- newspapers
- newsletters
- magazines
Bound Printed Matter–2 to 9 days
Permanently bound printed materials such as:
- advertising
- promotional material
- directory material
- editorial material
Media Mail–2 to 9 days
Materials such as:
- books
- printed music
- videotapes (recorded)
- CD-ROMs (recorded)
- computer-readable media (recorded)
- printed educational charts
Parcel Post–2 to 9 days
Materials such as:
- small and large parcels
- other materials not eligible for first or standard class
Preparing Your Mail
In addition to shape, the Postal Service classifies mail pieces by the way they are prepared. These classifications are based on how efficiently your mail pieces can be processed on Postal Service equipment. The Postal Service classifies all mail pieces into one of three categories:
- Machinable
- If you prepare your mail piece so that it has an accurate address and can be processed on Postal Service equipment, your mail piece is “machinable” and eligible for “presort” rates.
- Nonmachinable.
- If your mail piece does not meet the machinable standards, you may have to pay postage plus a “nonmachinable surcharge.”
- Automation.
- If your letter-size or flat-size mail piece is machinable and displays the correct barcode, you can qualify for lower, “automation” rates.
To qualify for machinable and automation rates, your addresses must be standardized, validated and updated.
Basic Address Quality Standardization
- Delivery address information placed on the same line
- Predirectional in delivery address line
- Correct spelling of street name
- Correct suffix for delivery address
- Secondary address information
- Correct spelling of city name
- Standard state abbreviation
- Correct ZIP Code
Automation Address Quality Standardization
- POSTNET Barcode (Required for automation discounts)
- Attention Line (Optional)
- Group, Department, Division Name (Optional)
- Business / Firm Name (Required)
- Delivery Address (Required)
- City, State, ZIP Code (Required)
- 4-State Barcode (Optional)
Address Validation and Verification
- To achieve automation rates, you must verify the complete address with CASS-certified™ software at least 180 days prior to mailing. CASS stands for Coding Accuracy Support System, which verifies that the address falls within a deliverable range, corrects misspellings and adds required USPS® ZIP Code information
- To achieve Carrier Route rates, you must verify the Carrier Route information at least 90 days prior to mailing
Step up to today’s postal requirements and more with CODE-1 Plus — the most relied upon CASS-certified™ mailing software in the world.
Prepare your business for the 2006 USPS® Rate Case, CASS™ Cycle L postal requirements, and more with the new Address Quality Hub™ — the next-generation address cleansing platform that combines the strength of multiple address cleansing and correction tools for maximum postal discounts and improved mail deliverability.
First-Class Mail Move Update
- In order to mail at presorted or automation First-Class Mail rates, you must use an approved Move Update process. Each address must be updated at least 185 days prior to the mail date.
Capture move updates faster and more efficiently with VeriMove™.
Sorting Your Mail
Depending on the type of mail you are sending, there are three basic sortation “tiers” that will define what postage rates you will pay.
- Carrier Route and Saturation. This geographically dense mail is placed in trays in delivery sequence. This mail will receive the deepest discounts since it requires little sorting or processing.
- Automation. Mail that can be easily sorted by machine using a Postnet or OneCode barcode receives the next highest discount, with the lowest rates earned when you have 150 pieces or more going to the same 5 Digit ZIP Code.
- Non-automation. Mail that is not barcoded will earn “Non-automation” discounts if they are prepared in such a way as to save the USPS® some processing time and effort. There may be varying discounts for mail that can be barcoded and sorted by USPS® equipment (machinable) and mail that can not be fully processed using USPS® sorting equipment (non-machinable).
Generally the more geographically dense your mail is, the greater opportunity there is to earn postage discounts. The good news is–we can help mailers take steps to increase their ZIP Code density and the corresponding discounts you can earn. Our Professional Services Teams are expert in evaluating and implementing these strategies.
Presort to the highest level possible with MailStream Plus™. Now you maximize postal discounts on every class of US Mail with the presort software that’s PAVE™ Gold-certified in every single category.
Entering Your Mail
Discount mail cannot be placed in a blue USPS® collection box or handed to your carrier. It must be presented at a business mail entry unit (BMEU) or designated postal facility where you hold a mailing permit, along with any required postal statements. The postal employee will check to ensure that your mail is correctly prepared and paid for.
- Destination Entry Discounts
If you are mailing Standard Mail, Periodicals, Parcel Post, or Bound Printed Matter, you may be eligible for further discounts if you enter your mail closer to its destination.- DBMC–Destination Bulk Mail Center (21 in the U.S.)
- DSCF–Destination Sectional Center Facility (350 in the U.S.)
- DDU–Destination Delivery Unit (local Post Office–over 33,000 in the U.S.)
The USPS® is implementing a plan to restructure their mailing facility network to be more “shape based” under a program called END–Evolutionary Network Design. Over the next decade or more, the existing facility structure will be replaced by a network designed to process mail more efficiently than is possible today. Our presort programs can help you make that transition easily by directing mail to the facilities that will provide the best drop ship discounts, whether they are in the existing or new facility network.