Master Manufacturer: How to Do a Co-Mail Analysis
In your comparative analysis, be sure to compare all proposals to your actual method and costs.
STEP 6. Negotiate
Guess what? Co-mailing costs are negotiable—highly negotiable. Mailers are definitely making a profit from mailing your magazines. Some costs are not negotiable, such as postage and freight, but most everything else is.
With mailing costs becoming more significant in the printer-selection process, and co-mail services becoming more competitive, printers are getting more aggressive with their proposals.
Usually, some itemized costs in the SSM can be reduced or eliminated through persuasive negotiations. Administrative fees can be highly targeted, as can the percent of shared savings. Instead of the common 50 percent, some are now requesting only 40 percent.
Postage is now the most expensive line item in manufacturing and distribution costs. Due to the USPS mandating co-mailing as the only means to drastically reduce costs, managing this service has become critical.
Steven W. Frye is owner of Frye Publication Consulting in Hailey, Idaho. He is an expert in production processes, and has negotiated printing, paper and distribution contracts for dozens of publishers. He can be reached at Steve@SteveFrye.com.