Postage Meter Cost Breakdown Analysis
Postage Meter Cost Breakdown Analysis
The overall cost of using a postage meter is dependent on the type of mailing and additional mailing equipment used such as digital scales or folding machines. Postage meters are central to the mail system operation. Generally, an on-site mail center will have three main expenses: supplies and additional equipment, the postage meter and the actual shipping costs based on mail volume.
Supplies and Equipment:
Postage machines generally use ink and labels which may be purchased through an online office supply retailer or a postage meter vendor. These items are generally more reasonably priced through an online retailer. Additional mailing equipment such as folding machines or self-seal envelope “tabbers” can be leased or purchased to further improve shipping speed. For the most part, leasing this additional equipment is a more viable option for very specialized, expensive or equipment that requires ongoing maintenance.
Companies that do not require highly specialized equipment because they have a low outgoing mail volume still benefit from purchasing additional equipment that facilitate the mailing process. Digital scales are the more common type of add-on for smaller businesses and improve the accuracy in shipment weight. This accuracy therein lowers expenses due to overpriced shipping. Digital scales do not require calibration as often as traditional scales and if connected to the internet can provide a price quote for what it would cost to send the package through a private shipping provider. Digital scales are more expensive than traditional scales but can be rented for a very low monthly rate.
Meter Costs
Postage meters are leased to businesses and cannot be purchased. Meters can only be leased through USPS approved vendors. Meter bases generally run about /month.
Billing Types
There are two billing options, a “pay-as-you-go” option and a “pre-pay” option where you “load” up the meter. The pay-as-you-go allows you to pay at the end of a pay period for the total sum of postage fees for that period. This option usually incurs a monthly fee. Pre-paying usually has a cap limit of ,000 and can be done online or by mailing a check to the USPS. Therein postage charges are deduced from your balance. Some of these leasing agreements will include a contract. READ THE FINE PRINT! Some contracts will have a pre-pay clause that specifies an amount of money needs to be kept in the account at all times.
Before signing any contracts, factor in the price of supplies and leasing fees to make sure that this total is less than you currently spend on shipping. If you are unsure how much you currently spend on shipping, use an online postage provider for a few months to help you track your shipping habits.
Monique L. Myers is a writer, surf instructor and an art enthusiast based in San Diego, California. She writes extensively for Resource Nation and VoIP Service, both online resources that provide expert advice on purchasing and outsourcing decisions for small business owners and entrepreneurs.
Resource Nation provides free tools, tips, and purchasing advice for business owners and entrepreneurs in over 100 business categories ranging from phone systems to credit card processing. Whether it’s connecting businesses with local and national pre-screened vendors, or offering easy service comparisons on a VoIP service. Resource Nation empowers business decision makers by providing the information they need to make smart choices.