Direct mail campaigns remain a powerful tool for reaching customers and prospects and driving engagement. However, like any marketing campaign, the costs can quickly add up, making it hard for businesses to optimize their marketing budget.

Luckily, we created a comprehensive guide that details the various factors determining the cost of direct mail campaigns and included several tips on how to decrease expenses without compromising impact. From design insights to postage secrets, discover cost-effective solutions that will enable you to save money on your direct mail campaign while maximizing its ROI.

Understanding Direct Mail Costs

Design

Designing your direct mail pieces takes time and can be either free or costly. For example, suppose you hire a professional graphic designer to create your mail pieces. In that case, this is an added cost and could cost anywhere from $100 to $1,000 or more, depending on who you hire and what is required for your design.

In contrast, you could go with an internal designer or design your mail piece yourself. While this takes time away from usual day-to-day tasks, it is the cheapest option as it only costs you time.

Printing

Printing costs depend on several factors, including what material you are mailing, the size, the quantity, what type of paper and finishes you choose, and who you print with.

For example, mailing a catalog will cost more than mailing a postcard. Mailing a 72-page catalog will cost you more than mailing a 40-page catalog. In addition, mailing 200 4" x 6" postcards will cost more than mailing 200 6" x 11" postcards. Overall, the more resources and time needed to print your direct mail materials, the more money it will cost. For example, a catalog typically includes more paper and ink, and it involves binding your catalog together. In contrast, a postcard is a smaller, single piece of paper that does not require binding or folding, thus translating into lower costs.

Mailing List

You can mail your pieces using a list you already have or from your internal database, or you can create a brand new mailing list.

Launching your direct mail campaign using an internal mailing list or a list you already have will be the cheapest option since you already have the address information. The only thing you might need to account for is deduping or NCOA. When you choose to dedupe your mailing list, your direct mail provider removes any duplicate addresses so that recipients only receive one mail piece. NCOA, or National Change of Address, is where your direct mail provider will take your mailing list and compare it to address change data provided by the USPS. If any addresses are found in the move data, those addresses will be updated to the new address. These options have an added cost since they take your provider some time.

The other option is creating a new mailing list to target a new audience. This can be highly beneficial for building strong brand awareness and increasing your customer base. However, it will cost you more than mailing to an audience you already know. The cost of building a mailing list varies. For example, making a list based simply on location and age will be cheaper than creating a mailing list based on buying activity or interests due to how this data is compiled.

Postage

Postage varies based on your mailing quantity, how fast you want your mail pieces delivered, and the weight.

Larger mail quantities qualify for bulk mail postage discounts. These bulk mail services include First Class Mail (a minimum of 500 mail pieces), Standard Mail (a minimum of 200 mail pieces), and Every Door Direct Mail.

Every Door Direct Mail is the cheapest option, but your mail pieces will be delivered to every address on a chosen Mailing route. First Class Mail is the more expensive bulk mail option but has the fastest delivery time. Standard Mail or Marketing Mail is the second cheapest bulk mailing option, but it will take a few days longer than First Class Mail.

If you do not wish to mail using Every Door Direct Mail or do not want to meet the minimum quantity of 200 or 500 for First Class and Standard Mail, you will need to pay full, single-piece postage. In addition, the heavier the mail piece, the more the postage costs will be. For example, a catalog typically weighs more than a postcard, meaning the cost to mail postcards is cheaper than mailing catalogs. Read further to discover a postage secret that can help you save money on small direct mail campaigns.

How These Costs Add Up

Ultimately, the final cost of a direct mail campaign will be determined based on the above factors. While it may sound like the cost will add up quickly, direct mail campaigns can be completely tailored to meet your exact budget and goals. For example, suppose you are looking to mail catalogs to a group of customers. In that case, you can save money by choosing a smaller catalog, designing your catalog in-house, and selecting bulk mail.

Read further to discover other ways you can significantly reduce the cost of a direct mail campaign.

How to Save Money on Your Direct Mail Campaign

Efficient Design & Layout

When designing your direct mailers, you can save and make money in two ways.

To save money, you can save on hiring a professional designer by designing your mailers in-house. To help with this further, you can ask your printer for a free direct mail design template. Even if you aren't familiar with designing printed pieces, these templates, whether you have to create a postcard, brochure, or catalog, will help ease and speed up the entire process.

You need to create an effective design to make more money on your direct mail campaign. A money-making design includes contrasting colors, catchy and large headlines, branded elements, high-quality images, and an irresistible call to action with a coupon or other offer. For more tips on creating a direct mailer that generates amazing revenue, check out these direct mail design tips.

Targeted Mailing Lists

Regarding direct mail campaigns, targeting can save you a ton of money. When you target the right audience, you're not wasting money sending mailers to uninterested individuals. For example, say a pizza restaurant wanted to reach every household within a 3-mile radius to promote their buy one get one free pizza deal. Unfortunately, not everyone within that radius likes or can eat pizza, resulting in a lot of wasted money. Instead, this pizza restaurant could save money while making more money by targeting only those who show interest in pizza or have dined at one of their competitors before. In addition, a retailer selling predominately women's clothing could save a lot of money by targeting just women in a particular area.

Targeting can be as specific as you need it, from targeting individuals based on location and demographic to buying activity, interests, or if they have similarities with your most successful customers. Check out our blog "How Targeting Helps You Save Money on Direct Mail Campaigns" to get ideas on how you can save on your next campaign.

Bulk Mail & Other Postage Savings

As mentioned above, taking advantage of bulk mail services is the best way to save money on your direct mail campaign. While Every Door Direct Mail is the cheapest direct mail option, it's only suitable if you're introducing your brand to a local area or providing a product or service that everyone might need. Otherwise, you'll waste money since all your mail pieces will be delivered to every address on a mailing route.

So, using First Class or Standard Mail is your cheapest option. To take it a step further, planning in advance is ideal. Instead of choosing First Class Mail to meet your deadline, you can select Standard Mail to save a few cents per mailer but still ensure your mail pieces arrive on time.

Suppose you don't have 200 or 500 people to mail to, in which case bulk mail discounts are out of the question, right? Luckily, even if you have one direct mail piece, you can still take advantage of bulk mail discounts thanks to Direct Mail Commingling. This service allows you to send as few as one postcard with bulk mail discounts applied. It works by combining your small quantity with other companies' mailings, so you can launch cheap direct mail campaigns without having to mail to unnecessary individuals.

Material & Print Choices

Printing will account for a large portion of your direct mail campaign costs. However, you don't need to spend a fortune. The key is to analyze your goals and budget and then create a balance between quality and cost. Quality is essential. When you have a high-quality marketing piece, your message and brand stand out and increase ROI and brand awareness. To save money without sacrificing quality, here are a few things you can do when printing your direct mail materials:

Standard Mail Size & Format: Choose standard sizes and postal-service approved formats. This reduces production costs and ensures a perfect fit in recipients' mailboxes, increasing the likelihood of engagement.

The Standard Printing Options: Choose the standard options your printer provides that are approved by the USPS, including sizes, paper, and coating. Custom paper, sizes, and finishes will cost extra.

Quality + Low Prices: Find a printer that puts quality and competitive pricing on the same pedestal.

Coating Selection: If you choose to use a coating for a unique finish or extra protection against the mailing process, choose a UV coating rather than an aqueous one, as UV coatings are significantly cheaper yet still create a beautiful finish.

Turnaround Time: Turnaround time is the time it takes to print your materials. Just like ordering anything, the quicker you need your items, the pricier it will be. So, plan in advance so you can select a longer turnaround time and save a good chunk of money to have your direct mail materials printed.

Testing & Optimization

Testing your direct mail campaign can help you save money because it allows you to analyze what is and isn't working, thus allowing you to optimize your campaign so that your mail pieces aren't wasted and instead drive responses.

If you're planning a large direct mail campaign, try mailing to a smaller audience first. You can use Direct Mail Commingling or Standard Mail to do this. By sending to a smaller audience first, you can measure the results and make adjustments accordingly. When launching your large direct mail campaign, you can ensure your mailer's message, offer, and design are as effective as possible before the big rollout.

In addition, you can also A B test your campaign to see which elements lead to more cost savings and revenue.

In order to save money on a direct mail campaign by testing, you need a way to track your results. For example, you can include a QR code with tracking parameters, a promo code, unique contact information built explicitly for the specific campaign, or a coupon.

Integrating with Other Marketing Channels

You can integrate your direct mail campaign with other marketing strategies to save money and increase your revenue.

By taking this approach, such as combining your direct mail with email, social media, online ads, podcasts, and more, you increase overall reach and effectiveness while distributing your budget across multiple channels, leading to potential cost savings.

Choosing An All-in-One Print & Direct Mail Provider

You can save a lot of time and money on your direct mail campaign by finding a provider who can print and mail your direct mail materials.

Doing this saves time and money because your provider can print your materials and then mail them directly from their facility on your behalf. This means you don't need to purchase a mailing permit, address and bundle your mail pieces, or run to the post office. Instead, everything is prepared and handled for you.

Conclusion: How to Save Money on Direct Mail Campaigns

Overall, here is a summary of the tips you can follow to save money on your next direct mail campaign:

Cost-Effective Design: You can save money by asking your printer for a free direct mail design template and designing your mail pieces in-house. In addition, make sure you create a compelling and eye-catching piece with a call to action that can't be ignored.

Targeted Mailing Lists: Sending mail to a smaller, targeted audience minimizes waste and enhances the impact of your campaign, ensuring that your message reaches the most relevant recipients.

Leverage Direct Mail Discounts: Utilize bulk mail discounts through bulk mail services or Direct Mail Commingling so you can dramatically lower your per-piece cost.

Optimize Mail Size & Materials: Choose standard postal service-approved materials. These materials are provided as standard options by your printer. By selecting these options, you can create high-quality direct mail pieces at an affordable price.

Test and Optimize Your Campaign: Test your campaigns to determine what elements generate the best results, thus optimizing your entire direct mail campaign and ensuring your pieces make money rather than waste money.

Combine with Other Marketing Efforts: Integrate your direct mail campaign with other marketing strategies to increase effectiveness while allowing you to distribute your budget across multiple channels, leading to cost savings.

Choose a Print and Direct Mail Provider: Choosing a provider who will print and mail your materials significantly reduces time and costs, as they will handle everything for you.

Implementing these strategies reduces direct mail campaign expenses and enhances effectiveness, ensuring better responses and sales.

To save money on your direct mail campaign, click below to discover some of our most popular direct mail services. At Kingston Printing, we're your go-to print and direct mail partner, dedicated to helping you find the best options for your goals and budget.