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Getting into Mailing: What Printers Need to Know

Many printers, frustrated with minimal revenue gains, look to
mailing services to drive incremental profits. Adding mailing
services can offer synergy with existing printing services, with
minimal investment and a fast learning curve.

Are You Ready?

Recent surveys indicate 65 percent of everything printed is
eventually mailed. If your printing jobs follow this pattern,
you could be ready to incorporate mailing services into your
business.

Step one is to review your mailing-service plans with key
customers, whose buy-in is critical to your success. These
discussions will provide a better understanding of what it will
take to get the job done, which in turn can strongly influence
initial software and equipment priorities.

Likely components may include a workstation (minimally, a
powerful desktop PC equipped with USPS-approved presorting
software); an inkjet addressing machine; work tables for
staging; a strapper, tabber, postage meter and scale; plus a
conveyor, inserter, and assorted supplies. Naturally, you'll
need additional floor space to accommodate this equipment; most
mailroom floor plans suggest a minimum requirement of 400 square
feet.

Investment Costs and ROI

Speed, volume, and mailing class all significantly influence
initial cost outlays. An occasional mailer — handling postcards
with small runs, for instance — can probably get started with
little more than $15,000 in startup expenses; larger-scale
operations may require a substantially greater initial
investment.

Don't let the price tags scare you away: with an expected
average revenue of $.07 per piece mailed, a $15,000 investment
would take roughly 215,000 pieces of mail to break even. And
depending on the nature of your planned mailing services, you
could even repurpose existing equipment or buy refurbished
hardware resources until you're on your feet.

As you shop for mailing solutions, you'll notice the cliché "You
get what you pay for" applies far more to hardware purchases
than to software, where big performance can come in remarkably
cost-effective packages. How can you tell what software is right
for you? Start with basic USPS qualifications:

* CASS: Coding Accuracy Support System certification —
confirming the use of up-to-date ZIP + 4, carrier route and
5-digit ZIP coding data — is a must for any presorting software.
* PAVE: Presort Accuracy, Validation and Evaluation
certifications vary by sorts and mail classes. Is the software
PAVE-certified for the types of mail you expect to handle? *
Visit www.ribbs.usps.gov/files/vendors/paveflis.rtf for a list
of PAVE-certified software vendors.

The USPS: Intimidating, but Manageable

Don't let postal rules frighten you away from potential new
revenues! Requirements set by the United States Postal Service
for mailings are undeniably complex, but resources are
everywhere that can help you stay compliant, productive and
profitable in your new venture.

First, trust your mailing software: those CASS and PAVE
certifications prove it's been programmed to follow
ever-changing postal details. Also, many software developers
offer free technical assistance; some even train their support
staff in mailing details as well as the software itself. The
right provider will be happy to hold your hand until you are
comfortable with their product.

Instead of trying to achieve mailing "expert" status overnight,
pace yourself by becoming well versed in regulations that apply
directly to the mailing needs of your key customers. The USPS
posts the latest regulation changes in the Domestic Mail Manual
(find it at pe.usps.gov/text/dmm300/dmm300_landing.htm), and
plenty of other free publications are available to walk you
through essential postal rules.

Safety in Numbers: Professional Mailing Resources

Try to develop a working relationship with your local Post
Office — not just meeting the local Postmaster, but getting
face-to-face with the personnel who receive and handle your
mailpieces. Many new-to-mail printers join their local Postal
Customer Councils, which offer forums to discuss general mailing
issues among postal representatives and mailers at all levels of
expertise.

Your most significant organizational "ally" might turn out to be
the Mailing & Fulfillment Service Association, the national
trade group that serves as the "voice" of mailers. (For details,
visit www.mfsanet.org.)

Choosing Mailing Software

What qualities should you look for in a software solution?
Consider these factors:

* "Easy to learn" is important, but no more than "easy to use."
Wizard-guided steps may seem valuable as you're getting started,
but once you understand how to use the software, they'll
probably slow you down. * Don't underestimate the importance of
seamless integration from entry-level products to more
full-featured versions. Nothing is worse than outgrowing your
existing software only to learn that suitable upgrades don't
exist or require learning from scratch. * Nail down all
compatibility issues — not just with the computer on which it
will run, but also with your existing print infrastructure. *
Make sure the software will handle your current needs, and is
not "dumbed down" in terms of speed or the number of records it
can handle. * How good is the Customer Support? Seek third-party
references from industry forums — not just the cherry-picked
happy customers vendors may provide, but unrehearsed contacts
that can give you the unvarnished good and bad news. (Don't
forget to include references from printer manufacturers). * Be
sure to consider all costs, not just startup figures. Find out
how long the initial data subscription lasts, and what's
included in annual renewals. * If you already offer
variable-data printing services, good news: VDP is now hot in
mailing as well. Some software packages support, and even
enhance, this technology.

Marketing Mailing Services

Many printers stumble into mailing services; some subcontract
direct mail jobs, only eventually realizing the benefit of
bringing jobs in-house; still others buy, or merge with,
existing mail houses. Here are some strategies for building
mailing services into your business:

* Know Your Market. A thorough awareness of your current client
base will help you launch into mailing while anticipating future
customer needs. Try to determine how much of what you currently
print is mailed after leaving your shop. Next, learn about your
customers' presort needs, and position yourself as a logical
candidate to handle that work. Finally, see if they have
database demands such as list hygiene or de-duping, and make a
case for why you should handle that data-manipulation work. The
one who controls the database, controls the customer — but that
control won't be handed over lightly. * Make it Personal. Review
your plans with your top mailing prospects. Key benefits may get
you the business: billing yourself as a one-stop shop offering
faster results, and predicting time and cost savings for
centralized printing and mailing. * Heed the Competition. Keep
service offerings in line with your market by learning who
you're up against, what they offer, and what they charge. *
Spread the Word. Exploit all points of customer communications —
from traditional advertising to promotional copy on your
packaging and bills, and from revamping your Web site to
including an "Ask me about mailing services" message to your
phone system's on-hold recording. * Join the Club(s). Seek out
and become a member of industry-specific organizations. People
buy from people, and networking is an important element of
new-venture success.

What's In It For You?

Once you've answered the questions and checked off the "to-do"
points described above, you'll find mailing to be a rewarding
addition to your printing-services business. It's hard to
imagine a better way of exposing such a sizable chunk of your
existing business to incremental revenues. What's more,
printer-mailers often claim that incorporating mailing services
even helps build their printing business. Customers enjoy the
convenience and economy of a "one-stop" print-and-mail house —
and they'll have you to thank.

Good luck, and good mailing

About the Author

Ted Seward is Vice President of Marketing for BCC Software, the
leading developer of high performance PC-based software and
solutions for professional mailers. BCC's flagship product, Mail
Manager 2010, allows users to optimize postal presorts, utilize
streamlined database maintenance functions, and improve
deliverability of mailpieces.

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