Franking Machines

Perhaps you have seen ads on television or in magazines touting the handiness of postal metering machines. Read on to find out the details you can’t find in an ad in our Ultimate Guide to Franking Machines.

What are franking machines?

The term franking machine, also referred to as a stamping machine or a postage meter, refers to a device for computing the postage cost and automatically stamping packages or letters that pass through it. The benefits of using a postal meter include:

• the ability to print precise postage for most mail classes,
• discounts from the machine leaser,
• market your business by including its logo or advertising messages on mail pieces.

Who makes franking machines?

These postal meters come from a number of varied manufacturers. The majority of these are located in the UK and US. Among the major manufacturers are:

1. Neopost Ltd.
2. Pitney Bowes Ltd.
3. Francotyp Postalia Ltd.
4. Frama UK Ltd.

You can find and purchase from major manufacturer’s machines by visiting our large online catalogue at Mailcoms.co.uk.

Cost of Postage Stamping Machine

A pretty huge range exists in the cost of a new franking machine. These devices typically range in cost from £500 ($650) to £25,000 ($33,420). The cost depends on the complexity of the machine and its size. You can also obtain a used postal metering device. A third option is to lease or rent a postal metering machine starting at about £15 ($19.67) per month.

You will have additional costs on top of purchasing the machine. These may include postal inspection charges, ink cartridge costs, maintenance, and, in some locations, collection charges. You will offset these with the savings on postal mailing charges.

Is franked mail cheaper than stamps?

Typically, you save money using a postal metering machine. It can help a small or medium-sized business reduce its expenses in the long-term. In the UK, franked post results in significant Royal Mail discounts. In the UK, these discounts result occur on a per-item basis. You will typically save seven pence or more on each piece of mail. In the US, to receive the deepest discounts, your business must register for a bulk mail permit. You can save around six to seven cents on bulk mailings. The larger volume of mailings you incur, the larger the postage reductions.

Further Cost Reductions

A postal metering device for your office does not simply reduce the amount you spend on mailing costs. You also save travel costs to and from the post office as well as the busy work task of affixing a stamp to each postal item which can result in a total of many person-hours. This frees your staff to do more meaningful tasks. By franking the mail yourself, you ease the sorting process for the post office’s sorting center. This results in a reduced chance of delayed delivery or loss. The branding you can add to each mail piece provides an invaluable marketing tool that combines an advertising cost with your postal costs. Essentially, you add an ad to every piece of mail you ever send, but a legal and low-cost one.

To Buy or Lease a Postal Metering Machine?

Maybe you are wafting over the idea of buying or leasing. While a small machine doesn’t cost much, even £500 ($655) can be a lot when you first start a business. For a startup, renting a makes the better choice since it reduces the initial outlay. Shop around though. Some companies expect you to enter into a long-term contract. You may not want to do so since you soon be able to afford to buy the device. Carefully examine any potential lease, especially its termination clause. In some cases, you cannot terminate the lease, but in others, you can by paying a termination fee.

You can purchase a postal metering device later in the business’s life cycle. You may be able to negotiate a better price from a supplier from whom you have rented. There is stiff competition between postal meter suppliers, so if you negotiate, you can typically get a special offer to get you to purchase from them.

Be prepared for a significant outlay. The $500 ($655) machines work for very light mail, but if you need to do large scale mailings, you need something larger. A basic machine capable of 100 letters per day costs between £1,000 ($1,331) and £3000 ($3,933). If your business needs to conduct high-volume mailings, then expect to pay about $25000 ($33,420) for an automated, state-of-the-art device. You can rent a basic device though for approximately £15 ($19.66) to £50 ($65.50) per month. A heavy-duty metering device rental costs about £500 ($655) per month.

Maintenance Needs

Any business machine requires maintenance. If you purchase a machine, you must pay for the maintenance and servicing costs yourself. On the other hand, if you rent the machine, the supplier typically includes maintenance and servicing in the rental contract. In the UK, you must have your machine inspected annually.

Machine Features

Machines come in various types with different features. Your choice largely depends on the number and type of postal mailings you send. If you send many parcels, a postal metering device with scales helps. However, if you need to send bulk parcels, especially heavier ones, check the upper limits of the scale first. When determining what size you need, it can help to negotiate a short-term rental.

In Conclusion

A postal metering device makes an ideal investment when your business can afford it. Until you can buy one, rent it. You will save both money and time with one of these devices. You can reduce the amount of time spent readying mailings and the person-hours spent doing so as well. Meanwhile, you will bundle your mailing costs with at least one of your marketing costs by emblazoning your logo onto every piece of mail you send. This method of branding proves invaluable since one piece of mail gets seen by many people.