Direct Mail Services Procurement Intelligence Report, 2023 - 2030 (Revenue Forecast, Supplier Ranking & Matrix, Emerging Technologies, Pricing Models, Cost Structure, Engagement & Operating Model, Competitive Landscape)

Every organization and its procurement team look forward to negotiating the best deal while procuring a set of products or subscribing to services. Rate benchmarking involves price/cost comparison of more than one set of products/services to analyze the most efficient combination that can potentially help the procurement team in getting the optimum rate.

When analyzing rate benchmarking of direct mail services, the rates of postal services play an important role. For instance, in April 2022, U.S. Postal Services increased first-class mail Forever Stamp prices by two cents from USD 0.58 to USD 0.60.

In our study, we have analyzed the rate of different types of mails, at different sizes with different quantities. In the U.S. rate of mailing 1,000 letter-size postcards can cost USD 446.8. Similarly, mailing 5,000 letter-size postcards can cost USD 1,754. Mailing 10,000 quantity of letter-size postcards can cost 3,388 USD.

In Europe, sending letters from one country to another can cost USD 2.06. As of 2022, in Europe, the average rate of the domestic standard letter was USD 1.36. In the UK the postage with 100 grams weight can cost USD 8.76. Whereas 1 kg postage can cost 11.44 USD. 20 kg postage can cost 24.87 USD.

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Labor cost is one of the key components of the total incurred costs while offering a product or service. Therefore, an organization must decide on whether the focus category should be retained in-house or outsourced if the organization is providing its products or services at competitive prices. If the organization decides in favor of outsourcing, it must understand the difference in the salary structures of suppliers before selecting a supplier and formulating a negotiation strategy.

According to our research, the graphic designer at Vistaprint receives a 4% - 5% higher base salary compared to the salary received by the graphic designer working in companies such as PsPrint, PostcardMania, and Gunderson Direct, Inc. However, the year-on-year increment rate in all these companies majorly depends on the Key Result Areas (KRAs).

Organizations may find it cumbersome to continuously track all the latest developments in their supplier landscape. Outsourcing the activities related to gathering intelligence allows organizations to focus on their core offerings. At this juncture, our newsletter service can help organizations stay updated with the latest developments and innovations and subsequently assist in preventing disruptions in the supply chain. We have identified the following developments within the direct mail services category over the last two years:

In October 2022, Christus Health Print Services partnered with Ricoh USA Inc., to expand its direct mail services, and increase customer reach and patient engagement.

In July 2022, Reno Type, a direct mail printing services company is expanding its office space by occupying 8,000 square feet space in Rock Boulevard, Nevada, US. The company plans to expand its printing operations in Nevada region.

In January 2022, Direct Marketing Solutions (DMS), an integrated direct marketing mailer company announced the acquisition of Mailing Services of Pittsburgh’s (MSP) Pennsylvania plant assets. Through this acquisition, the company is expected to expand its reach across the Eastern part of the U.S.