How postage meters help businesses manage mailing costs

Managing costs is a vital aspect of business. Every activity can produce a cost and, no matter how insignificant, costs can eat away at a company’s bottom line when they’re allowed to spiral.

What is a business cost?

Business costs are often broken down into a few classifications:

Variable costs change with the level of output, such as ordering more supplies to fulfill a higher volume of orders.

Fixed costs remain constant over a defined period regardless of output, such as rent and certain salaries.

Direct costs are tied to a specific product, service, project or department. They can include both variable and fixed costs.

Indirect costs are not tied to a specific product, service, project or department. Examples include depreciation or administrative expenses.

Why physical mail remains an important channel

All businesses communicate with their customers and stakeholders through a number of channels. While digital channels have become more prominent, physical correspondence remains a valuable aspect of the communications mix. Some customers value the tangibility of physical correspondence, and it can also be an effective channel for reaching certain demographics.

Postage meters track costs and add efficiency

How companies manage the distribution of outgoing mail can have a big impact on resources. If completed manually, it involves affixing stamps to each item. This is time-consuming, becomes more tedious as the volume of mail increases, and can result in items receiving too much or too little postage. This may cause businesses to overpay or cause mail to be delayed, returned, or delivered with postage due. These factors can make it difficult to track and control the true cost of postage.

However, adopting a postage meter is one way of managing costs. Users run an envelope or postage label through a meter, which prints the required postage. Integrated scales and current rate information improve accuracy and reduce the risk of overpaying. USPS metered rates may also be lower than the price of stamps for certain types of mail. Businesses should compare current rates and consider equipment, maintenance, software, and supply costs when assessing potential savings.

Another benefit is that users may spend less time purchasing stamps or visiting a Post Office location. Some postage meters also allow businesses to assign costs to specific jobs or departments, enabling them to calculate the direct postage costs of a particular process