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Deciding between a postage meter and online postage
Mie-Yun Lee, Editorial Director, BuyerZone.com
July 10, 2001

You have two options for eliminating inconvenient runs to the post office: a postage meter or online postage. Both save businesses time when it comes to mailing, but deciding which one is right for your office can be tricky.



For those who are still wary of the Web, postage meters come out on top. If you have a slow dial-up connection or are prone to computer crashes, online postage could be a real headache. Even if your service lets you print downloaded postage onto envelopes or labels while offline, you'll have to be online to download the postage. A meter also frees you from having to download and learn new software, which you'll need to tackle for online postage.

Since PC postage is typically accessible from just one computer, tucking a meter in the corner is your best bet if there are multiple users. Renting a meter will run you about $20 to $30 per month (plus the cost of a scale - $5 per month to rent or starting at $40 to buy).

The idea of a lease when you rent a meter, however, presents a downside - it isn't that simple to get out if your office's needs change. You'll also have to pay to reset your scale when postage rates change, which can be as much as $100 a pop. And you can't scrap post office visits altogether - although postage is refilled over the phone, meters must be brought to the post office for inspection each year.

Online postage, on the other hand, generally comes free of leases and post office visits, but does come with a monthly service fee ($1.50 to $15 per month depending on what the service includes). In addition, most Internet postage software offers some perks, such as using addresses directly from your computer's address book and printing a logo right on an envelope.

Added steps, however, could compromise convenience - getting online, downloading postage, loading an envelope or label into a printer. It may be more of a hassle than simply slipping an envelope through a meter.

It's also easy to print postage incorrectly - users have complained of printing postage upside down or labels getting stuck in their printers - and that can add up when you factor in the cost of consumables.

And the online postage industry has had its fair share of disappointments. Leader E-stamps ditched the online postage business last fall and at about the same time Stamps.com laid off 240 workers. Stamps.com has also raised their monthly fees considerably (from $1.99 per month to $4.49 per month). Getting used to a service and its software just to have it charge higher fees, evolve into a different kind of business, or go out of business altogether could be enough to make you sign up for a meter.

When constant runs to the post office cut into your workday, consider the pros and cons of online postage and postage meters. One of these options is bound to deliver.

Quick tips

Keep stamps on hand. Keep a supply of stamps handy so you have something to fall back on in case your meter or online service is out of commission.

Read the fine print. With either method, make sure to read the fine print in the contract for hidden fees and rules.

Take a test run. Ask about trial periods for meters and online postage. The best way to determine which one is right for you is to give them both a test drive.

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