Ten ways in which firms can reduce their postage costs

The worldwide economic down turn and rising operational costs are affecting businesses worldwide. Many firms have reviewed their operations with a view of reducing their operational costs. 

In this inaugural blog, I share ten ways in which firms can reduce their courier (postage) costs, without affecting service delivery to their customers.

1. Use Express service sparingly: Express service is time definite. It is a premium service that costs up to triple the overnight service. It should therefore be used for critical deliveries that can not wait until the next day. Firms should instead consider the use of same day or overnight delivery services which would be ideal in most circumstances.
2. Prepare shipments early: Many firms do not plan their paper work such that mail arrives at their internal registry with an "URGENT" sticker. However, when critically looked into, most of Express service can be delivered by the same day service. Educating staff to prepare their shipments early can reduce the urge of using the Express service and as a result save up to 38%. 
3. Post in the afternoon: This strategy enables a firm to use the next day (overnight) service, instead of either Express or same day service. The next day service can enable firms save up to 60% when compared to the Express service.
4. Address shipments correctly: Courier firms may charge a Return To Sender (RTS) fees when they fail to deliver due to the lack of a proper or incorrect address. The fees can be up to 50% of the postage fee. To avoid these, always double check the shipment address before posting.
5.  Watch out for weight bands: Most courier firms bill shipments based on weight, delivery zone and size. A smaller weight band can be cheaper for firms that send letters while a higher weight band is beneficial to firms that send heavy parcels. 
6. Insist on Proof of Delivery (POD):  Some courier firms that provide POD after delivery of shipments. These can be Written POD or electronic POD such as SMS or email. The provision of POD can help firms improve their customer service and reduce telephone costs associated with follow up of shipments.
7. Use door-to-door Couriers: Many Courier firms offer door-to-door pick up and  delivery services. These can help firms cut down on messengerial and fleet costs incurred while taking the shipments for postage.
8. Send bulk to get discounts: Courier firms may offer discounts for bulk postage. There could be thresholds that attract different discount rates; the higher your mail volumes, the higher the discounts. Thus, firms can save up to 30% using these discounts.
9. Use post paid service: Cash flow is a challenge sat such times. The use of a post paid service reduces your cash outflow and saves you the costs of prepayment or maintenance of an cash imprest.
10. Check out for offers: Some couriers firms have offers on specific occasions or days. These can result in savings of up to 50%. Examples of such offers are send two for the price of one or buy three and get one free e.t.c.