Postage rates. If ever there were a way to get nickeled and dimed to death…

Credit unions spend far too much money on postage. Whether it be from statements, notices, tax forms, or one-off member communications, credit unions send a lot of mail. And sure, they get some deals on postage via bulk rates.

But they should be able to save more. And they can. Here’s how credit unions can save money on postage rates.

Don’t Send Mail

This one is obviously more complicated than it sounds. Your credit union must send certain member communications. It’s not just a good idea—it’s the law.

Still, as you are no doubt well aware, you don’t have to send those member communications through the mail. You can send them electronically, which accomplishes the same basic thing. And, all things considered, electronic member communications are generally better than their paper counterparts in every way:

• Lesser environmental impact
• Faster delivery
• Much cheaper to produce and send
• Better color options
• More easily stored, saved, or archived

But not everyone is signed up to receive electronic documents. There are always a few holdouts. Too many, in fact.

If you want to save money on postage, the most effective way is to not send postage at all. Find ways to convert your members to electronic member communications. Or, if you want to work with a vendor, find a vendor that uses their own strategies to convert your members to e-statements.

Send Mail Through a Vendor

Sometimes the cheaper option really is a vendor. Not every vendor’s pricing works out so well for the credit unions, but a few vendors—such as XDI—can help your credit union’s bottom line.

There are so many kinds of credit union member communications. Some of them you can send all at once. Others just trickle through. Your credit union may qualify for bulk shipping some or even all of the time, but then there’s pre-sorting to worry about.

Vendors will always get the best prices for shipping. They’ll also get advantageous pre-sorting prices. However, some vendors make a little profit on pre-sorting by negotiating a pre-sorting price with a third-party, then pocketing any refund money from the USPS.

Better vendors such as XDI consider pre-sorting a pass-through cost. They’ll pre-sort on their own, and their high volume of daily mail ensures that they will always qualify for the best rates. Essentially, they’ll cut out that middleman and pass the savings onto your credit union.

Final Thoughts on Saving Money on Postage Rates

Ultimately, your credit union has to look out for its own interests and those of its members. There’s certainly a good chance that going through a vendor could positively impact your bottom line.

If you’re looking for a vendor, make sure you know what to look for. If you’d like to see how XDI could help your credit union, contact us to learn more. Or simply follow the links below to see what else you can do to streamline your member communications process!