How Much Does a Postage Meter Cost?

Last Updated on February 20, 2024
Written by CPA Alec Pow | Content Reviewed by CFA Alexander Popinker

If you run a business that sends a lot of mail, investing in a postage meter can help streamline your mail processing and unlock substantial cost savings. But before committing to a postage meter purchase or lease, it’s important to understand the full range of expenses involved.

This guide will break down the key costs associated with postage meters to help you budget for this investment and choose the best option for your needs.

How Much Does a Postage Meter Cost?

If you plan to buy a postage meter outright, expect to pay a price ranging from $500 on the low end up to $5,000+ on the high end. The exact price will depend on:

• Brand and model: Popular suppliers like Pitney Bowes, Neopost, FP Mailing Solutions, and Quadient offer various meter models with different features, speeds and capacities. More advanced digital models cost more than basic analog meters.
• New vs. used: You can save by purchasing a used or refurbished machine, which run from $300 to $1,500+. However, warranties may be limited.
• Print volume: Higher-volume machines designed for large operations with big mailing needs tend to cost more. Basic meters for modest letter volumes start around $500.
• Integrated scale: Meters with integrated digital scales that automatically calculate postage based on weight cost more than basic models. Scales add $200 or more to the price.
• Extra features: Options like envelope printing, package weighing, postage tracking software and high-speed processing increase the price over basic postage-only meters.

As you evaluate postage meters for purchase, it’s wise to focus on total cost of ownership rather than just upfront price. A higher-priced model can pay for itself over time through greater postal savings, automation and improved productivity.

According to Expertmarket.com the cost of postage meters varies depending on the model and supplier. Postage meter costs average at $20-$500 per month.

Some specific examples of postage meter costs include:

Stamps.com: $25 – $50 per month for rental service fees

Quadient IS-280: $19.75 per month

FP PostBase mini: $21.95 per month

Stamps.com offers a different approach, with no lease, maintenance fees, proprietary inks, or hidden charges. They charge a flat-rate fee of $19.99 plus applicable taxes, if any.

Benefits of Postage Meters for Business Mailing

A postage meter applies metered mail postage directly onto envelopes or packages at your office, eliminating the need to affix traditional stamps. Postage meters offer several advantages, including:

• Postal discounts: Metered mail qualifies for reduced bulk mailing rates from the USPS and other carriers.
• Increased efficiency: Postage meters are faster than manual stamping and improve mailroom productivity.
• Postage tracking: Digital meters track spending and make postage accounting simpler.
• Custom printing: Many postage meters can print custom text, logos or promotional messages on envelopes.
• Postal compliance: Meters ensure accurate, valid postage for complexity-free acceptance by postal services.

For these reasons, postage meters are a vital tool for many organizations, streamlining business mailing from small offices to Fortune 500 corporations. Understanding meter costs is essential to accessing these benefits.

Postage Meter Leasing Fees

Many businesses opt to lease a postage meter rather than buying one. This avoids a major upfront payment, instead spreading costs over time into predictable ongoing expenses. Typical postage meter lease agreements run 1 to 5 years in length. Average lease costs range from $25 to $60 per month on the low end, up to $150 to $300+ per month for advanced models with extra capabilities and features.

Lease fees vary based on:

• Brand, model, and features — More sophisticated digital models have higher monthly rates. Optional add-ons like package weighing increase the monthly lease fee too.
• Lease term length — Longer 3-to-5-year leases have lower monthly fees than short 1-to-2-year terms.
• Usage volume — Meters designed for high mail volumes have higher lease rates.
• Number of meters — Leasing multiple meters from the same provider can qualify for discounts on monthly fees.

It’s important to understand exactly what is covered in the lease agreement. Most leases include basic maintenance and repairs to minimize unexpected costs. But fees for things like ink, seals, and inspections may be extra.

Ongoing Costs

In addition to purchase costs and leasing fees, postage meters require a variety of ongoing operating expenses:

• Postage — The actual postage funds loaded into the meter are a significant ongoing cost, just like purchasing stamps. USPS commercial base pricing starts at $0.53 for metered letters. Discounted rates for bulk mailings may apply.
• Ink cartridges — Digital postage printers require replacement ink, ranging from $25 to $65 per cartridge. Costs vary by print volume and meter model.
• Print heads — Over time, the print head must be replaced, at a typical cost of $150 to $300 depending on the brand.
• Seals and tapes — Adhesive seals and disposal tape are needed with each postage refill, at a cost of $10 to $30 per refill.
• Maintenance and repairs — Basic maintenance averages $100 to $150 per year. Outside repairs for malfunctions can cost $200 to $500+ on an as-needed basis.

To maximize savings and uptime, look for postage meter contracts that bundle supplies, maintenance and support into the lease fees or separate maintenance agreements. Consider the full operating costs when selecting a meter.

Postage Meter Lease vs. Purchase

You might also like our articles on the cost of a brick mailbox, UPS PO box rental, or UPS fax services.

Deciding between leasing and buying your postage meter involves weighing the pros and cons:

Benefits of Leasing:

• Lower upfront costs with predictable ongoing expenses
• Built-in maintenance and repair coverage
• Latest meter models with automatic upgrades
• Shorter contracts offer flexibility to switch models

Benefits of Buying:

• No ongoing lease payments
• Potentially lower long-term costs
• Can use meter indefinitely or sell it used
• May be necessary if usage is very high
• Firm ownership of the asset

For many small and medium-sized businesses, leasing offers the best balance of affordability, cash flow management, and access to the latest features. Buying is preferable for very high-volume operations better served by an owned asset. Carefully project the total cost over your expected usage period under each option.

Choosing the Right Postage Meter

To select the best postage meter model and provider, consider factors like:

• Mail volumes — Match unit capacity and speed with your current and expected future usage.
• Weighting requirements — Choose an integrated scale model if weighing mail pieces is essential.
• Available space — Measure the area available to accommodate the meter size.
• Budget — Balance purchase/leasing costs with needs and potential savings.
• Postal qualifications — Verify that the meter meets all regulations for your type of mailings.
• Supplies and maintenance costs — Factor in all operating expenses.
• Software integration — Evaluate compatible postal accounting software.

The right meter improves efficiency, lowers postage expenses, and provides postal compliance. Thoroughly research options to find the best fit.

Tips for Maximizing Postage Meter Savings

To maximize returns on your postage meter investment:

• Leverage bulk mail discounts with properly prepared large mailings
• Right-size postage using integrated scales to avoid overpayment
• Consolidate mail to fewer larger batches to drive automation
• Upgrade older models to modern digital meters with tracking
• Reduce envelope costs by printing directly onto mail pieces
• Optimize mail preparation to qualify for presort discounts
• Consider outsourcing for very high volumes with a mail service provider

Following postal regulations and best practices for efficient mail processing unlocks the full savings potential of postage meters. Your equipment supplier can provide guidance to start optimizing your spend.

Final Words

Postage meters enhance productivity and provide discounted postage for businesses that process a lot of mail and packages. When evaluating meters, focus on:

• Upfront purchase or lease costs based on models, features and volumes
• Ongoing expenses for supplies, maintenance and postage refills
• Cost savings opportunities from improving mail efficiency
• Finding the right meter for current and future operational needs

While postage meters require an investment, they pay dividends over time through substantial process improvements and postage reductions. Understanding all the cost factors helps ensure you choose cost-effective equipment aligned with your business requirements. With an optimized mail operation, your postage meter can deliver a significant long-term return on investment.

Frequently Asked Questions

Is it cheaper to use a postage meter?

Yes, postage meters can provide significant cost savings compared to buying standard stamps. The ability to purchase bulk metered postage at a discount combined with avoiding manual stamping labor can reduce mailing costs by 15% to 30%. Efficiency gains also cut costs.

How long do postage meters last?

With proper maintenance, postage meters typically last 5 to 10 years. Newer digital models may have a longer lifespan than older analog meters. To maximize longevity, follow the manufacturer’s suggested maintenance schedule and service procedures.

What are the rules for metered postage?

All metered mail must comply with postal regulations for accurate postage amounts, valid meter numbers, proper placement and readable impressions. Meters must undergo regular inspections. Random audits by postal services help enforce rules. Fines can be imposed for violations.