$5,700 a Year for the Privilege of Buying Postage

$5,700 a Year for the Privilege of Buying Postage
An office desk with a cost-saving spreadsheet and a secured inventory of stamp coils.

A trade association with 15,000 members got two pieces of news in the same week: a rate increase coming in July, and a board vote to freeze the operating budget for the year.

Then the meter vendor called to offer an upgrade that would handle the new rates — an extra $150 a month on top of the $400 already being paid.

Add up the access cost

The equipment is a separate expense from the postage, and it is easy to miss because it arrives as a lease line rather than a mailing line:

  • Lease: $400/month — $4,800/year
  • Ink: $200/quarter — $800/year
  • Rate update fees: $100/year
  • Total: $5,700 a year, before a single letter is mailed.

That is the cost of the privilege of paying for postage. The alternative is buying coils and applying them with a hand dispenser.

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What replaced it

Core volume — about 40,000 stamps a year in surplus Flag coils at roughly $0.62. The metered rate was around $0.64, so the unit cost improves and the equipment cost disappears.

Legal notices — about 2,000 a year at retail, $0.78 and up, with Certified Mail and return receipts where required. This batch is never optimized.

What was tried and abandoned — an intern bought 500 stamps from an "80% off" site. They were stickers, and $200 went in the bin.

Cost centre Metered Surplus coils Benefit
Equipment: lease and ink $5,700/yr $0 $5,700
Postage, 60,000 pieces $38,400 $37,200 $1,200
Annual total $44,100 $37,200 $6,900

Most of that is the equipment, not the postage — which is the point. Chasing a better per-stamp rate while leasing the machine is optimizing the smaller number.

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Buy before the increase, for volume you will actually send

When a July increase is announced, project Q3 and Q4 volume — say 30,000 pieces — and buy that quantity in May at the current surplus rate.

When the rate reaches $0.80, an operation buying at the metered rate sees costs rise about 25%. Yours do not move, because the postage is already bought and it stays valid.

The discipline is buying against a forecast rather than buying as much as the budget allows. Postage you will not send this year is not a saving, it is a cupboard.

Where to buy

The USPS official store for legal notices, or a verified surplus channel such as Forever Stamp Center for core volume. Rate history is in the USPS financial reports, and pending adjustments appear at the Postal Regulatory Commission before they take effect.

The short version

Price the machine separately from the postage. If the lease and consumables cost more than the discount the machine earns you, cancel it, buy coils below face, and pre-buy against a forecast ahead of announced increases.

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author writer for USPS forever Stamps Store

Retired USPS mailroom supervisor with 30 years of service in Chicago. He now contributes columns on Forever Stamps, sharing trusted advice on spotting counterfeit risks and finding reliable discount deals for everyday mailers.