The biggest component for Publisher's mailing bill is the Australia Post postal rates - publishers accept this rate.
"Instead of making decisions based on the mailing houses process, which is only based on the smallest component of the invoice," says Joe Pesce, director of Intellimail. "As the Australia Post Print Post rate comprises 80 to 90 per cent of the publisher's mailing cost, that's the component of the invoice that should be attacked," says Mr Pesce.
"There are so many cost variations within Australia Post that make the costing confusing. There's grouping of post codes, weight, transport and the cost comparison between lodgement interstate and intrastate."
The key to a significant reduction in Print Post mailing costs is this Line Haulage component.
Pesce gives this example. "If a lodgement of a 500 gram A4 plastic wrap magazine destined for NSW was to be lodged in Victoria it would cost $3.48 per unit as other state residue. The same article lodged in NSW as local mail would attract a postage cost of $2.53. A saving of 95 cents per unit."
Traditionally no one has been able to give an accurate price prior to the processing of the mailing job.
In an industry first, according to Intellimail, they have developed software that determines the cheapest way mail can be distributed.
"By simply uploading the suburb, state and postcode field of the database, size and weight of the posted item, the software makes an instant comparison as to what items should be line hauled interstate or lodged in your home city. We can find savings in mailing bills of up to 30 per cent."
"Through our automated processing abilities, Intellimail can also determine the lowest mailing processing costs. The system has already bypassed the IT component of the mailing house invoice. There is now little or no IT requirement from the mailing house."
"All the client needs to provide is the specs to determine the postal costs. We do the rest. It's a more efficient, streamlined system."
Pesce concluded by saying, "The discounts are there to be had. In this economic climate every business can benefit from a saving like this. And it's there with every mailing job."