How to save money at a lettershop

Folio: The Magazine for Magazine Management, June 15, 1995

Production and distribution executives have talked a lot about commingling at the printer to save money. Promotion managers can save money by commingling at the lettershop. Some lettershops will take mailings from a number of companies and projects and sort that group into specific Postal Presort sequences, says circulation consultant John Chilson.

As a result, most of the mail becomes eligible for a lower postal rate - five cents or more. In this situation, Chilson explains, you sign an agreement with the lettershop allowing them to keep all postage savings over a certain amount (usually five cents). The extra savings enables the lettershop to pay for sorting. It amounts to savings of $50 per thousand pieces - enough to take a large bite out of your lettershop costs. Chilson advises promotion managers to check it out. "You may have to call around to find a lettershop offering this service," he says, "but the potential savings are worth the effort."