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Precancelled stamps are a special type of stamp used with pre-sorted first-class, marketing, and nonprofit mail. They are used in lieu of an indicia or metered postage to increase the perceived value and personalization of a mail piece to make it appear more like first-class mail while still receiving the postage discounts associated with presorted and marketing mail.
Here are pictures of all the different precanceled stamps currently available for purchase through the USPS
Precancled stamps make mass mailings appear to be more personalized while still receiving the discounts on postage that you would get otherwise with mass mailings. In other words, they’re just for decoration.
For example, if you are a nonprofit organization sending an appeal letter to your donors, it might seem a little impersonal to send mail with just an indicia.
Nonprofit stamps are largely unheard of but are a phenomenal way to communicate with and raise funds from your donor base.
No one wants to feel like they are just another number especially when their donating to their most cherished organizations, churches, or political groups.
Also, nonprofits enjoy massive discounts on nonprofit postage rates that can only be accessed through marketing mail campaigns. These discounts can be 50% less than first-class postage rates.
Win-win, right?
Because almost no one is aware of or uses precancled stamps, your average recipient will assume someone is writing them a letter. When was the last time you didn’t open a letter with a stamp on it?
While precanceled stamps are just for decoration and do not increase the cost of your postage, they do have nominal cost that is deducted from your postage payment to the USPS at the time of mailing.
These stamps come in denominations of $0.05, $0.10, and $0.25.
For example, if you were mailing 1000 letters and your postage cost for the campaign was $200 and you used $0.10 precanceled stamps, you would deduct the $20 you spent on precanceled stamps from the $200 postage cost and pay the postal service the remaining $180 balance.
So, your postage cost would be the same but there is an increase in your printing and mailing costs.
With typical direct mail, an indicia is imprinted on the mail piece. This is done at the same time the rest of the mail piece is printed and does not take any extra time, material, or labor to do so.
With precanceled stamps, the mail pieces are going to have to have a stamp affixed to them. This is often done by hand but can also be done by a special machine.
Either way, it’s more time and labor so the cost of your campaign will increase. How much depends on many factors but the number of mail pieces total is the most important factor.
It’s safe to budget a $0.05-$0.10 increase in the cost per mail piece.
It’s important to note that precanceled stamps are only for presorted first-class mail or marketing mail. This includes nonprofit marketing mail.
These types of mail campaigns cannot be entered into the mailstream at a local post office like you might in other mail you and your organizations process.
This mail is entered into the mailstream at BMEU’s (Business Mail Entry Units) and is usually submitted by professional print and mail service providers.
Most mail service providers do not typically do precanceled stamp projects or don’t offer it at all. Therefore, you’re going to want to use a mail service provider like us, Print Shoppe, to help fulfill your precanceled stamp direct mail campaign.
Even acquiring the stamps can be a very complicated process. You can’t simply walk into your local post office and buy them like you would with first-class stamps. In fact, I tried to do this the other day and the postal worker had no idea what precanceled stamps were. We laughed because she had been working there for over 20 years!
Precanceled stamps could drastically increase the response rates of your next campaign with little increase to your cost. They can also increase less tangible but important things like brand association and value.
Something as simple as a precanceled stamp can turn an ask into a give and prospect into a customer.
Q: What are precanceled stamps?
A: Precanceled stamps are a special type of postage used for presorted First-Class, marketing, and nonprofit mail. They’re an alternative to an indicia or metered postage and are designed to make mass mailings appear more personalized and valuable, like First-Class mail, while still allowing the sender to receive postage discounts.
Q: Why should I use precanceled stamps?
A: Precanceled stamps are an effective way to increase the perceived value and personalization of a mass mailing. For example, a nonprofit sending an appeal letter might use a precanceled stamp to make the mailing feel more personal than one with a standard indicia, which can lead to higher engagement and response rates.
Q: Do precanceled stamps cost extra?
A: The face value of the precanceled stamps themselves is deducted from your total postage payment to the USPS. For instance, if your postage for 1,000 letters is $200 and you use $0.10 precanceled stamps, you would deduct the $20 cost of the stamps and pay the remaining $180 to the postal service. However, using precanceled stamps will increase your overall printing and mailing costs because each mail piece must have a stamp affixed to it, which requires extra time, labor, and materials.
Q: What are the denominations of precanceled stamps?
A: Precanceled stamps are available in denominations of $0.05, $0.10, and $0.25.
Q: How do I use precanceled stamps?
A: Precanceled stamps can only be used on presorted First-Class or marketing mail, including nonprofit marketing mail. These types of mailings must be entered into the mailstream at a Business Mail Entry Unit (BMEU) and are typically handled by professional print and mail service providers.
Q: Can I buy precanceled stamps at my local post office?
A: No, you cannot purchase precanceled stamps at a local post office. The process for acquiring them is more complex, and they are typically handled by specialized mail service providers.
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