Postage meters calculate exact rates and print postage on letters or on standard pieces of tape that you affix to a package or envelope. Federal law prohibits private ownership of postage meters, however, they can be leased. A multitude of sources are available to lease these machine.
Function
A postage meter weighs envelopes and packages and calculate the cost of postage. A meter lets you track postage costs and also pay for additional services, such as express or international mail. Meters track the postage printed, which you pay for under the terms of your lease agreement. Using a postage meter, you can send first class mail, express mail, international mail and presorted first class mail (which is typically 500 or more pieces that are sent at one time and may be discounted). You cannot, however, send periodicals using postage from a postage meter.
If your business is spending more than about $50 per month on postage, you'll probably save money by keeping a postage meter on premises. This is because instead of using standard stamps, you can print the precise amount of postage required to mail the item. The lease agreement costs are based on usage and typically require a three-year contract. Be aware, though, that even if your usage drops, the rate you pay each month may not drop as the rate is based on the average from the previous year. If you don't have a lease agreement for usage, then expect rates to be modified every year, regardless of use.
Benefits
Leasing a postage meter provides the benefits without the responsibility of the equipment. A lease agreement includes repair of the unit by its manufacturer. You can also purchase a maintenance contract and pay for the cost of that contract over the charges built in to the monthly rate paid to lease the machine. A lease agreement also standardizes your monthly postage costs, so it's easier to budget.
Effects
Most postal meter manufacturers don't require to sign an agreement at first. You can get a free trial for up to 90 days. And, depending on the term of your contract, you may also receive free postage at the start, as well as rate protection and a specified number of resets should the value of postage change.
Considerations
Since this is a highly regulated industry, it can be difficult to negotiate a lease agreement in terms of postage cost. But you'll have greater success if you focus the lease agreement on the value added by the manufacturer: customer service and rate insurance. Make sure to ask for rate insurance--a flat annual fee that covers the cost of upgrading your postal meter throughout the year should postal rate change. These upgrades can be quite expensive, up to $175 each time the meter is upgraded. Be sure to clarify how postage meter service is conducted. On-site service lets you avoid mailing or shipping the meter to the manufacturer. Also ask about pre-paid postage. Similar to loading a gift card, you simply load the meter with a pre-paid amount of postage. Any unused postage rolls over and you can often earn free postage for paying up front.
Misconceptions
Most lease agreements cover the use of the meter itself for postage only. It does not include the use of other, consumable items. These items, such as tape or sealing liquid, are best bought at local office supply stores and not directly from the manufacturer.
