Breaking Down the Costs of Direct Mail Marketing

Understanding EDDM Costs: A Comprehensive Guide

Direct mail marketing remains a powerful tool for businesses aiming to reach local audiences. However, understanding the associated costs is crucial for budgeting and maximizing return on investment. This guide delves into the various expenses involved in an Every Door Direct Mail (EDDM) campaign, offering insights to help you make informed decisions.

Understanding the Basics: What Goes Into EDDM Costs?

When pricing out a direct mail campaign, you’re looking at a few key components:

1. Printing Costs – The physical postcards or mailers themselves.

2. Postage Fees – The cost of sending your mail through the USPS.

3. Design Expenses – Whether you DIY or hire a pro.

4. Mailing Services – Optional, but can save you time and effort.

5. Targeting & Data – If you want specialized mailing lists.

Let’s dive into each and see where you can save some serious cash.

Printing Costs: Balancing Quality and Budget

Printing is a significant component of your EDDM expenses. The cost varies based on factors like size, paper quality, and order volume. Here's a general breakdown:

• Standard Postcards (9" x 12"): Prices typically range from $0.20 to $0.50 per piece, depending on the quantity and printer. For instance, some services offer 500 EDDM-eligible postcards for approximately $103, equating to about $0.206 per piece.

• Premium Finishes: Opting for features like a glossy finish or thicker paper (e.g., 14pt or 16pt) can add around $0.05 to $0.10 per piece.

• Larger Sizes: Bigger postcards or custom designs may increase costs due to additional paper and ink requirements.

Pro Tip: Printing in bulk often reduces the per-piece cost. Collaborating with local print shops can also offer competitive rates and personalized service.

Postage Fees: The Core Expense

Postage is a substantial part of direct mail marketing costs. As of January 2025, the U.S. Postal Service (USPS) has set the following rates:

• EDDM Retail® USPS Marketing Flats: $0.223 per piece.

• First-Class Mail Forever Stamp: $0.73 per piece.

Pro Tip: Utilizing EDDM services can lead to significant savings compared to traditional First-Class Mail, especially for large campaigns targeting specific neighborhoods.

Design Costs: DIY vs. Professional Services

An eye-catching design is essential for capturing your audience's attention. Depending on your resources, you can choose between creating the design yourself or hiring a professional:

• DIY Tools: Platforms like Canva and Adobe Express offer user-friendly interfaces with free and subscription-based options, allowing you to craft designs without extensive experience.

• Freelance Designers: Hiring a freelancer can cost between $50 to $500+ per design, depending on their expertise and the project's complexity. Platforms like Fiverr provide a range of designers with varying rates to suit different budgets.

• Full-Service Agencies: For a comprehensive approach, agencies may charge $1,000 or more, often including additional services like branding strategy and market research.

Pro Tip: If budget constraints exist, starting with DIY tools or affordable freelancers can yield professional-looking designs without significant investment.

Mailing Services: To Outsource or Not?

Handling the mailing process involves preparation tasks like bundling, labeling, and delivering mailers to the post office. Depending on your campaign's scale, you might consider outsourcing:

• Do It Yourself: While cost-effective, managing large volumes can be time-consuming and labor-intensive.

• Professional Mailing Services: These services can charge approximately $0.05 to $0.15 per piece, covering tasks from preparation to delivery.

• Turnkey Direct Mail Companies: Offering end-to-end solutions, these companies handle everything from design to mailing but at a premium price.

Pro Tip: For campaigns exceeding a few thousand pieces, professional services can save valuable time and ensure compliance with postal regulations.

Targeting & Data Costs: Do You Need a Mailing List?

With EDDM, you don’t need to buy a mailing list—USPS delivers to every house in a selected route. But if you want to target specific demographics, lists can be helpful.

• Basic EDDM Route Selection: Free.

• Purchased Targeted Mailing Lists: $0.05–$0.25 per record.

• Advanced Targeting with Custom Data: $500–$5,000+ for specialized data.

💡 Pro Tip: If your business serves a local audience, stick with USPS’s free EDDM route selection to save money.

Total Campaign Cost: Estimations Based on Budget

Combining the discussed elements, here's an estimated cost per mailer based on different budget levels:

For a 10,000-piece campaign, the total costs would be:

• DIY Budget Approach: Approximately $4,230.

• Mid-Tier with Professional Design & Mailing Service: Around $7,730.

• High-End, Fully Managed Campaign: Approximately $13,730.

Pro Tip: While DIY methods can reduce expenses, they require significant time and effort. Assess your capacity and consider whether outsourcing certain tasks could provide a better return on investment.

Making Direct Mail More Affordable

1. Print in Bulk – The more you print, the lower the cost per piece.

2. Use EDDM Instead of First-Class Mail – Major savings on postage.

3. DIY Where You Can – If you can handle design and mailing, you cut major costs.

4. Target the Right Neighborhoods – Avoid wasting money on areas unlikely to convert.

5. Track ROI – Use QR codes, unique phone numbers, or promo codes to measure success.

Is Direct Mail Worth It?

Absolutely! Even at the highest cost estimate of $1.373 per mailer, direct mail marketing can deliver a high return on investment when done right. Always keep in mind the lifetime value of your customer, and the cost to acquire a customer. The better you know your numbers the easier to justify the cost and how well it's worth it. Plus, with strategic targeting and smart design, you can make your campaign even more profitable, at a much lower price.

Ready to Launch Your EDDM Campaign?

Now that you know the true cost of direct mail marketing, it's time to put this knowledge to work. Whether you’re starting small or going big, Business on a Hill is here to help you maximize your marketing budget and get the best results possible.

Conclusion

Direct mail marketing through EDDM offers a tangible way to reach potential customers. By understanding and planning for the associated costs—printing, postage, design, and mailing services—you can craft a campaign that aligns with your budget and marketing objectives. Remember, investing in quality design and professional services can enhance your campaign's effectiveness, leading to higher engagement and a better return on investment.

If you're still on the fence about starting, check out our current Godfather Offers.

These offers were crafted for the sole purpose of reducing your risk and making the jump to working with us easier to manage.

Note: Prices are subject to change. It's advisable to consult with service providers and the USPS for the most current rates before planning your campaign.