How Commingle Mail Reduces Postage Costs for High-Volume Senders

Essly Ancira
Oct 7, 2024
2 min read

For businesses that send out large volumes of mail, postage can be a significant expense. Enter commingle mail, a process that can dramatically reduce postage costs by consolidating mail from different sources. This practice not only helps businesses save money but also optimizes mailing efficiency. Here’s a deep dive into how commingling mail works and why it’s a cost-effective solution for high-volume senders.

1. What Is Commingle Mail?

Commingle mail involves merging mail from multiple sources into a single batch for processing. This process is typically managed by a third-party service provider that specializes in handling and optimizing bulk mailings. The goal is to sort the mail in such a way that it qualifies for bulk postage discounts from the postal service, primarily through presorting and destination entry discounts.

Commingling works best for businesses that send large quantities of mail, such as banks, insurance companies, and marketing agencies, as well as organizations that conduct direct mail campaigns regularly.

2. Presorting and Postal Discounts

One of the key ways commingle mail reduces postage costs is through presorting. The USPS offers significant discounts to mail that is sorted before it reaches the postal service. When mail is presorted by ZIP code and bundled according to USPS requirements, it reduces the handling and sorting work that the postal service needs to perform, which in turn leads to savings.

For individual companies, presorting may not be cost-effective because they might not meet the minimum volume threshold required to qualify for discounts. However, by pooling mail from various sources, a commingle service provider can achieve the necessary volume and maximize postal discounts.

3. Destination Entry Discounts

Another benefit of commingle mail is the ability to take advantage of destination entry discounts. These discounts are offered by the USPS to mailers who drop off mail at specific regional facilities, known as Sectional Center Facilities (SCFs). By commingling mail and transporting it directly to these facilities, businesses can further reduce postage costs.

Destination entry discounts are especially valuable for high-volume senders who mail to a diverse geographic area, as they help reduce the transportation costs incurred by the USPS.

4. Faster Delivery Times

In addition to cost savings, commingle mail can also result in faster delivery times. By presorting and transporting the mail directly to the USPS’s regional facilities, the mail bypasses several processing steps, leading to quicker delivery. This is especially important for time-sensitive mail such as bills, statements, and promotional materials.

Faster delivery not only improves customer satisfaction but also enhances the efficiency of business operations, particularly for companies that rely on timely communication with their customers.

5. Reduced Labor and Equipment Costs

For companies that handle their own bulk mailing, the costs of labor, equipment, and software for presorting mail can be significant. By outsourcing to a commingling service, businesses can eliminate the need for expensive sorting equipment and reduce the manpower required for the mail preparation process.

The commingling provider handles the sorting, bundling, and transportation, allowing businesses to focus on their core operations without the logistical burden of mail processing.