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Postal Discount Basics

The total USPS® postage cost can range from 62 cents for First-Class service to as little as 12.7 cents for a non-profit automated Standard Mail 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 Class of Mail Service

First-Class Mail® delivery objectives: 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® delivery objectives: 2 to 9 days

Often includes materials such as:

  • circulars
  • advertisements
  • solicitations for donation
  • newsletters
  • merchandise
  • non-personalized correspondence
  • printed matter not required to be mailed as First-Class Mail
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Preparing Your Mail

In addition to size, shape and weight, 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.
Your PSI Specialist can show you how to prepare mail in order to save the most money. To increase your discounts, PSI will automatically add automation barcodes to all eligible mail so you can achieve the highest levels of saving possible.

Mailers looking to improve their customer data quality may want to consider some of these mailstream best practices.

  • 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

    • Delivery Point 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)
    • PLANET Code (Optional)

  • Address Validation and Verification

    • To achieve automation rates, you must verify the complete address with CASS-certifiedTM and DPV software at least 180 days prior to mailing. CASS (Coding Accuracy Support System) and DPV (Delivery Point Validation) verifies that the address falls within a deliverable range, adds required USPS® ZIP Code information and finally validates the address actually exists and can be delivered to.

  • 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.

PSI offers move update services so your addresses can be updated “on the fly” based on the most current NCOA (National Change of Address) database.

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Sorting Your Mail

Depending on the type of mail you are sending, there are a number of sortation "tiers" that will define what postage rates you qualify for.

  • Automation. Mail that can be easily sorted by machine using a Delivery Point or Intelligent Mail Barcode receives the 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 and presorted in such a way as to save the USPS® some processing time and effort.
The PSI Edge: We sort mail for thousands of customers, which gives us (and you) a tremendous advantage. Because we mail in such high volumes, we make it easier for you to achieve the deepest presort discounts possible – discounts that are deeper than you could earn on your own.

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Entering Your Mail

  • Destination Entry Discounts

    If you are mailing Standard Mail, you may be eligible for further discounts if you enter your mail closer to its destination.

    • ASF – Auxiliary Service Facility (7 in U.S)
    • DBMC – Destination Bulk Mail Center (21 in the U.S.)
    • DSCF – Destination Sectional Center Facility (Over 400 in the U.S.)
With a national network of operating centers, PSI will enter your mail at the facility that will save you the most money overall. In most cases, your mail will bypass the local post office, which can enhance delivery, too.

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