The Hidden Goldmine: How Postage Strategy Impacts EBITDA

In direct marketing, postage is often the single largest line item after labor. Yet too many business owners treat it as a fixed cost.

It’s not.

Smart operators are unlocking real EBITDA lift through strategies like:
 📦 Commingling – combining mail from multiple sources to qualify for deeper USPS discounts
 📫 Drop shipping – injecting mail closer to its destination to cut transit time and cost
 📬 Co-palletization (co-pal) – bundling with other marketers to reduce handling and optimize delivery

Why it matters:
The USPS offers substantial workshare discounts—sometimes $0.05 to $0.10 per piece—for marketers that presort and deliver mail closer to its final destination. That adds up fast: a million-piece campaign could save $50,000–$100,000 or more per drop.

Real-world example: IWCO Direct helped one client cut postage by up to 20% through commingling alone.

These aren’t just operational tweaks—they’re margin enhancers that can translate into higher valuations.

For companies preparing for a sale, scalable and efficient logistics are catching the eyes of strategic buyers and private equity firms. Why? Because postage savings drop straight to the bottom line—and compound at scale.

If your direct marketing company hasn’t rethought its postage strategy, you may be leaving money (and deal value) on the table.

We’ve helped sellers tell this story—and get paid for it.

Let’s talk.