The cost for letter folding equipment ranges widely depending on the machine’s speed, rating, and available features. Most vendors include the cost of the equipment, delivery, setup, and training in their price, but they may elect to charge separately for those fees.

One important thing to note: it’s important to buy a machine that keeps pace with your company’s growth. If you expect your folding needs to increase over the next year or two, it’s best to spend a little more up front so you don’t risk overworking your equipment or needing an upgrade down the line.

Price ranges
There are different levels of pricing based on how much folding you need your equipment to perform:

• Very low volume - $200 to $300 for a small tabletop folder. These folders are sold in retail superstores and online, and best suited for the smallest businesses.
• Moderate folding volume - $800 to $1,500 for a manual, friction-feed letter folder that handles 3,000 folds per hour and about 20,000 folds per month, works with standard-sized documents, and includes a limited number of fold settings. 

• Frequent folding volume - $1,800 to $2,500 for heavy-duty, manual equipment that can fold 10,000 sheets per hour and about 125,000 folds per month, works with different paper sizes and fold types, and includes other features to help streamline folding jobs.
• Automatic letter folders - $2,000 to $4,000 and more for faster setup and quicker speeds.
• Air-feed folders - $4,000 to $10,000 and more to quickly process paper of all sizes and different finishes.
• Production-level equipment - $10,000 to $15,000 and up to process 100,000 folds per hour and millions of folds per month.

Folder/inserter prices
The entry point for letter folder/inserters is much higher than standalone letter folders – prices for quality folder/inserters start at $4,000 and can reach as high as half a million dollars.

Basic folder/inserters can process 3,000 mail pieces per month with standard sized envelopes and limited features. Mid-range folder/inserters can handle 15,000 pieces per month and include additional features. Large-scale production equipment provides the most flexibility and allows you to process unlimited monthly mailings at speeds of 20,000 to 25,000 per hour.

Maintenance contracts
Vendors offer annual maintenance contracts to ensure your equipment stays up and running. If your equipment requires service, the vendor will send a technician to your location without charging you for parts and labor. They will also thoroughly clean your equipment each year.

Standard maintenance contracts cost 10% to 12% of the purchase price of the equipment and generally start after the manufacturer’s warranty expires – about 90 days from the date of purchase.  Depending on the vendor, the contract will permit you to make service requests either as often as needed or up to a fixed amount each year.

Keep in mind that the terms of a maintenance contract are tied to your equipment’s rating. For example, if your equipment has a rating of 30,000 folds per month and you overwork it by performing 50,000 folds, any damage to the machine won't be covered by your maintenance agreement.

Alternatives to purchasing new equipment
If you need high-end letter folders but can’t afford the expense, a lease allows you to spread your costs out over time.

Depending on the market value of the equipment, the length of the lease, and whether you intend to purchase the equipment at the end of term, your annual lease payments can be 10% to 20% of the cost of the equipment. You can also tack on a maintenance contract for an additional 10% of the equipment’s value to protect yourself against repair costs. For more information, read our Equipment Leasing Buyer’s Guide.

Another way to cut costs is to buy used letter folding equipment. Vendors may offer used high-end letter folders or mid-level letter folders with a lot of life left in them. These machines are refurbished to look and perform as good as new for 20% to 40% below the cost of new equipment.

However, used low-to-mid range letter folders are generally more difficult to refurbish. Since most businesses use their equipment for many years, the machines are usually so worn down by the time they replace them that it isn’t worth the hassle of fixing them up for resale.