Pricing Postage…

[kdw75]

When doing bulk mailings do you pass along the discount you can get from delivering to an SCF or do you keep it?

 

[tngcas]

There's a bunch of factors to consider in this equation but if I had to pick the main factor I would say: It depends on whether I think 100% that I will always be able to provide that same discount to that client. If I discount it now then I'll have to continue to discount it in the future.

 

[kdw75]

We generally price it like normal, but on larger mailings will drive it to the SCF if it saves enough to pay for the trip. This seems like it gives an advantage to mailers who operate in the big cities with SCFs.

 

[gregbatch]

We find it best to be transparent about postage. We provide copies of the postage statements to the client. We charge appropriately for services that result in additional postage discounts, such as full service, DSF and transportation to other SCFs. Clients are willing to pay for extra services if you are showing a reasonable net savings. It's common not so show a line charge for dropping at your local BMEU/SCF, but there is an amount factored in somewhere. Be sure you show only the additional charge over local drop for taking to another SCF or trucking to a distant SCF.

 

[Shawnd]

If it is a large local mailing then yea we truck to the SCF and charge accordingly, otherwise we drop at our local BMEU. Just because your taking it to the SCF doesn't mean you will get SCF discounts unless that mail is all local. I run distribution reports to see if it is worth it to either drop ship or deliver to SCF's. Then the customer gets the postage discounts and we charge a service charge for delivery if it is worth it for both of us.

Sometimes SCF delivery isn't about discounts but about speed of delivery, so you have to factor that as well.

 

[gregbatch]

If it is a large local mailing then yea we truck to the SCF and charge accordingly, otherwise we drop at our local BMEU. Just because your taking it to the SCF doesn't mean you will get SCF discounts unless that mail is all local. I run distribution reports to see if it is worth it to either drop ship or deliver to SCF's. Then the customer gets the postage discounts and we charge a service charge for delivery if it is worth it for both of us.

Sometimes SCF delivery isn't about discounts but about speed of delivery, so you have to factor that as well.

In Mail Manager the 'Show Summary' option under 'Destinations' will give a quick assessment of SCF discounts. We have had clients opt for another SCF even when the net cost was a little higher in hopes of speeding delivery. Good in theory, but some SCFs are like black holes. We've seen faster delivery sticking with the local SCF.