In the print and mail industry, continuous growth is essential for long-term success. Fortunately, print/mail service providers can execute many strategies to optimize the bottom line.

    Pricing Strategies

    Upselling and Cross-Selling Techniques

    Efficiency and Cost Management

    Leveraging Technology

    Diversifying Services

    Pricing Strategies to Maximize Profits

    One pricing strategy to maximize profits as a mail services provider is value-based pricing. This strategy involves setting prices based on the perceived value that clients derive from the services provided. By understanding the specific needs and preferences of clients, a mail services provider can offer tailored solutions and charge a premium price for the added value. For example, a mail services provider might suggest document design changes to call attention to customer loyalty perks. If reduced customer churn is the client's objective, mail services providers can charge a bit more to help them achieve their customer retention targets.

    Cost-plus pricing is probably the most common pricing method. This approach involves calculating the total cost of providing mail services and adding a markup to determine the final price. This strategy requires the collection of data from throughout the mail services operation. The cost of processing mailing jobs can vary. Companies must account for differences in page counts, materials, flats vs. folded mail, ink coverage, manual handling, and more. By accurately assessing costs and including a reasonable profit margin, a mail services provider can ensure they cover their expenses while still generating profits.

    Dynamic pricing based on seasonality can be another effective strategy for maximizing profits, but only if periods of high demand are constant across all service providers. By analyzing market trends and client behavior, a mail services provider might identify periods of high demand and increase prices accordingly.

    Bundling is a pricing strategy that involves offering multiple services or products together at a discounted price. Bundling can encourage clients to purchase more services. For instance, a package deal might combine fulfillment services with direct mail campaigns. By bundling services, a mail services provider can increase the average transaction value and maximize profits.

    Upselling and Cross Selling

    Upselling and cross-selling techniques can effectively boost profitability by offering more services or upgrades to existing clients. This not only increases the revenue from the transactions but also enhances the client experience by providing added value. By training sales and customer service representatives to identify opportunities for upselling and cross-selling, mail services providers can maximize their profits and increase customer satisfaction.

    Mail services providers can also use cross-selling techniques to promote related products or services. For example, if currently mailing bills for a client, offer to add payment processing. By showcasing the benefits and convenience of using a one-stop-shop, providers can generate additional revenue streams and increase profitability. Arrangements such as these cement client relationships and make it more difficult for them to jump to a competitor.

    For more cross-selling ideas, see "Cross Selling Your Mailing Clients".

    Cost Management

    One efficient cost management strategy is to optimize the supply chain. This involves carefully analyzing procurement processes and identifying opportunities to reduce costs. Companies can negotiate better deals with suppliers, consolidate purchasing to take advantage of bulk discounts, or explore alternative suppliers that offer more competitive pricing. One example might be to reduce the varieties of outbound envelopes. A two-window solution can allow print/mail service providers to use the same envelope for many clients and take advantage of volume discounts on the materials. By streamlining the supply chain, companies can lower expenses and ultimately increase profits.

    Investing in advanced mailing equipment and software can help streamline operations, reduce manual labor, and decrease errors. This not only improves efficiency but also cuts down on costs associated with labor and rework. Technology can enable better tracking and monitoring of resources, allowing companies to identify areas of waste or inefficiency. They can take corrective actions to optimize the cost structure.

    Leveraging Technology
    By implementing automated workflows, mail service providers can significantly reduce manual labor and increase efficiency. This not only saves time but also reduces the chances of errors, leading to improved customer satisfaction and cost savings for the business.

    Additionally, technology can be leveraged to offer value-added services to clients. For instance, providing online tracking options allowing clients to track their jobs in real-time enhances transparency and the customer experience.


    One potential area for diversifying services is offering packaging and fulfillment capabilities. This can include items such as kitting, assembly, and custom packaging. By expanding offerings to include these services, companies can attract new customers who require more comprehensive solutions for their mailing needs.

    Another area for diversification is offering specialized mail services for specific industries or niche markets. For example, companies could focus on providing services tailored to e-commerce businesses, credit unions, nonprofit organizations, or healthcare providers. By understanding the unique needs and challenges of these industries, companies can offer targeted solutions that differentiate them from competitors. This specialization can attract a loyal customer base and allow companies to command higher prices for their services.

    Expanding into digital marketing services can be a lucrative avenue for diversification. Many businesses are looking for integrated marketing solutions that combine traditional direct mail with digital channels such as email marketing and social media advertising. By offering these services, print/mail service providers can position themselves as a single source for all marketing services. This diversification can open new revenue streams and help companies stay competitive.

    Providing data analytics and insights can be a valuable service to offer. By leveraging the data collected from mailing campaigns, companies can provide clients with valuable insights into customer behavior, response rates, and campaign effectiveness. This data-driven approach can help clients optimize their marketing strategies and achieve better results. Companies can also perform data services to enhance the value of client mailing lists by adding demographic data, appending email addresses, or combining duplicates. Offering data analytics as a service not only increases profitability but also establishes a company as a trusted advisor in the industry. See this article for more data services strategies.

    Mail services companies must continually innovate and adapt to maintain profitability. Profit-enhancing strategies can ultimately lead to consistent revenue growth, client satisfaction, and heightened industry reputation.

    Mike Porter at Print/Mail Consultants creates content that helps attract and retain customers for companies in the document industry and assists companies as they integrate new technology. Learn more about his services at Follow @PMCmike on Twitter, or send him a connection request on LinkedIn.