Catalogers recognize the importance of co-mailing. It's a given every time a catalog goes in the mail. Understanding the true "net" savings and how it was calculated can often be a blur. The way printers charge for co-mail services varies and often the savings get reported as gross, not net.

There are two types of co-mailing; in-line and off-line. In-line co-mailing requires higher quantities, fewer partners (six at most) and takes place while the catalogs are being bound. Off-line co-mailing quantities can be well under 100M, there are often several partners (up to 30) and the process occurs after the catalogs have been bound. Based on my experience, approximately 70% of catalogs mail off-line, 30% mail in-line.

The Cost of Co-Mailing

What printers charge to provide this service varies widely. For example, one of the printers we work with charges a flat per thousand fee for in-line co-mailing. In-line co-mailers split the savings amongst themselves based on their percentage of the total names they contribute to the pool. For example, if an in-line pool of 4.0 million catalogs saves $120,000 and customer "A" is 20% of the list, they would save $24,000.

For off-line savings, the fee is typically 50% of the presort savings. This fee is higher than in-line because the catalogs are being bound on a stitching machine and then taken to a secondary machine for processing. One of our preferred printers only charges on the presort savings of the list while other printers count some amount of drop ship savings as co-mail savings and take half of that amount.

Net Postage Savings

After all fees, the true "net" presort savings should range from $.03 to $.06 per catalog. The range is wide because of quantity variations. For example, the cataloger mailing 10,000 copies will have zero carrier route to start with therefore, they will enjoy greater savings versus another mailer with 30% carrier route before co-mailing. Some printers even charge a co-mail administration fee or freight charges to ship catalogs to their co-mail facility (printers who do not co-mail in-house). There can also be fuel surcharges that reduce your true "net" savings.

Due Dates

When mail tapes are due vary greatly by printer depending on their co-mail schedules. For example, one of the printers we know asks for materials 40 days before the mail date which is approximately 50 days prior to the desired in-home date. That's a long lead-time compared with the 14 to 20 days another printer requires. When you want to mail the most recent "hot-line" names, this is an important marketing consideration that you should consider.

The other added benefit of co-mailing that most catalogs never consider is maximizing your drop ship savings. Your catalogs will be hitting more SCF's as part of a co-mail than they would on their own. This reduces your costs and provides a more predictable, quicker in-home delivery time.

Remember to focus on the actual postage costs plus any co-mail and distribution fees. Many mailers get hung-up on the savings per thousand or percentage saved without looking at the cost side of the equation. When the printer quotes you a savings amount, be sure to ask if the figure is net of all associated costs.

Stephen R. Lett ([email protected]) is president of Lett Direct. Inc.

Catalogers recognize the importance of co-mailing. It's a given every time a catalog goes in the mail. Understanding the true "net" savings and how it was calculated can often be a blur. The way printers charge for co-mail services varies and often the savings get reported as gross, not net.

There are two types of co-mailing; in-line and off-line. In-line co-mailing requires higher quantities, fewer partners (six at most) and takes place while the catalogs are being bound. Off-line co-mailing quantities can be well under 100M, there are often several partners (up to 30) and the process occurs after the catalogs have been bound. Based on my experience, approximately 70% of catalogs mail off-line, 30% mail in-line.

The Cost of Co-Mailing

What printers charge to provide this service varies widely. For example, one of the printers we work with charges a flat per thousand fee for in-line co-mailing. In-line co-mailers split the savings amongst themselves based on their percentage of the total names they contribute to the pool. For example, if an in-line pool of 4.0 million catalogs saves $120,000 and customer "A" is 20% of the list, they would save $24,000.

For off-line savings, the fee is typically 50% of the presort savings. This fee is higher than in-line because the catalogs are being bound on a stitching machine and then taken to a secondary machine for processing. One of our preferred printers only charges on the presort savings of the list while other printers count some amount of drop ship savings as co-mail savings and take half of that amount.

Net Postage Savings

After all fees, the true "net" presort savings should range from $.03 to $.06 per catalog. The range is wide because of quantity variations. For example, the cataloger mailing 10,000 copies will have zero carrier route to start with therefore, they will enjoy greater savings versus another mailer with 30% carrier route before co-mailing. Some printers even charge a co-mail administration fee or freight charges to ship catalogs to their co-mail facility (printers who do not co-mail in-house). There can also be fuel surcharges that reduce your true "net" savings.

Due Dates

When mail tapes are due vary greatly by printer depending on their co-mail schedules. For example, one of the printers we know asks for materials 40 days before the mail date which is approximately 50 days prior to the desired in-home date. That's a long lead-time compared with the 14 to 20 days another printer requires. When you want to mail the most recent "hot-line" names, this is an important marketing consideration that you should consider.

The other added benefit of co-mailing that most catalogs never consider is maximizing your drop ship savings. Your catalogs will be hitting more SCF's as part of a co-mail than they would on their own. This reduces your costs and provides a more predictable, quicker in-home delivery time.

Remember to focus on the actual postage costs plus any co-mail and distribution fees. Many mailers get hung-up on the savings per thousand or percentage saved without looking at the cost side of the equation. When the printer quotes you a savings amount, be sure to ask if the figure is net of all associated costs.

Stephen R. Lett ([email protected]) is president of Lett Direct. Inc.