Postage is a persistent operational expense for individuals and businesses, whether for invoicing, marketing, or general correspondence. This article compares the two primary methods of applying postage—traditional stamped mail and modern metered mail. We will focus on the specific mechanics and costs associated with each method to determine the most advantageous financial and logistical outcome based on mailing volume and business requirements.
Understanding Stamped Mail
Stamped mail is the conventional method of paying for postal service through the application of physical adhesive stamps. These stamps are purchased at a fixed price from the post office or approved third-party retailers. This method is simple, requiring no specialized equipment or long-term contracts. Stamped mail is the preferred choice for personal correspondence or for businesses with low and sporadic mailing volumes. The process is entirely manual, involving affixing the stamp to each mailpiece, which can be time-consuming for large batches.
Understanding Metered Mail
Metered mail involves postage printed directly onto an envelope or a label using a specialized device known as a postage meter. This equipment must be leased from authorized vendors, as mandated by the United States Postal Service (USPS). The meter acts as a secure, pre-funded postage dispenser, requiring the user to electronically transfer funds before postage can be generated. Postage meters are designed for high-volume business mailing environments, offering features like integrated scales and automatic envelope feeders. The machine uses Intelligent Mail Indicia (IMI) technology to ensure the exact postage is calculated based on the mailpiece’s weight, size, and destination, allowing for precise postage payment.
Key Differences in Appearance and Processing
The visual difference lies in the physical mark applied to the mailpiece. Stamped mail features an adhesive stamp manually affixed to the upper right corner. Metered mail displays a printed indicia, which is a rectangular impression that includes the postage amount, mailing date, meter license number, and a unique barcode. These differences significantly impact the mail’s processing speed within the postal system. The standardized indicia and embedded barcode on metered mail allow for automated sorting and verification, streamlining handling for the USPS. Stamped mail often requires more manual handling or specialized optical scanning, which can result in slightly slower processing, particularly for bulk mailings.
Cost and Discount Structures
The most significant distinction lies in the cost structures and available discounts. Stamped mail is purchased at the full retail rate, meaning the cost per piece is fixed with no volume-based savings. Metered mail qualifies for Commercial Base Pricing (CBP) offered by the USPS, which provides a lower per-piece postage rate than the standard retail price. Businesses can save several cents on every piece of First-Class mail by using a meter. This cost savings must be analyzed against the overhead associated with metered mail. Metered mail requires equipment leasing, with monthly rental fees ranging from $20 to $150, plus additional costs for proprietary ink cartridges and service agreements. The savings from the postage discount must exceed these fixed monthly equipment and supply costs to make metered mail financially advantageous.
Deciding Which Method is Right for Your Business
The decision between stamped and metered mail depends on the volume and frequency of a business’s outgoing mail. Stamped mail is the choice for businesses or individuals who send mail sporadically or in very low volumes, generally fewer than 10 to 15 pieces per week. For this low volume, the time spent manually applying stamps is negligible, and the fixed equipment costs of a meter would far outweigh any potential postage savings. Metered mail becomes financially advantageous once a business reaches a volume threshold where the per-piece postage discount surpasses the total monthly overhead of the meter lease and supplies. This method is necessary for high-volume correspondence, offering efficiency, precise cost tracking, and the ability to process mail quickly. Metered mail provides a systematic solution for enterprises with consistent and substantial mailing needs, while stamps remain the simple, zero-overhead option for minimal mailers.