Magazine article Folio: the Magazine for Magazine Management

Make Your Vendors Responsible for Excess Postage

Magazine article Folio: the Magazine for Magazine Management

Make Your Vendors Responsible for Excess Postage

Article excerpt

One way to cut costs is to hold vendors responsible for excess postage that results from their errors, suggested one circulation director, responsible for 90 business-to-business magazines, at a Circulation Management seminar. "We do our presorts in-house," he said. "We calculate that it will cost $23,000 for postage, for example, if the sorts are accurate. If the vendor comes in and charges us $25,000 for postage because the barcode wasn't put on right or they didn't do the piece right, they are liable for the excess postage. We write that into all our purchase orders with our main vendors." Other cost-cutting suggestions from this CD: (1) Make sure that whatever you design meets the postal standards and that you get all your discounts. (2) Exchange lists, don't buy them. (3) Keep your mailings close to your ratebase. If it's 50,000, mail 50,020. There's no reason to mail 50,150. …

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