If your business has been using the same mechanical postage meter for years, be prepared to go shopping. As of March 31, the government has mandated that every postage meter in active use must be electronic. Older, mechanical meters, which are more susceptible to tampering, will be phased out completely.
Even if you already have an electronic meter, if your lease is ending soon it's not a bad idea to put your mailing needs out to bid now. With several hundred thousand meters still needing replacement, the four mailing systems companies are scrambling to land this new business.
Postage meter systems consist of the meter, which dispenses the postage, and the base it sits on, which pushes the envelope through. Meters can only be rented, not owned, and the government closely guards who can distribute them. As of now, your choices are Pitney Bowes, Francotyp-Postalia, Ascom-Hasler and Neopost.
It's best to become an informed buyer before you talk to even one vendor. Bases and meters are incompatible across vendors, so there is great incentive for salespeople to lock in a customer from the start. And don't let a salesperson tell you you have to rent the base, too; you can buy these outright, as well as the postal scale.
Also, it's important that the postage meter you choose meets your mailing needs. If you underestimate your volume (which salespeople sometimes help you do intentionally), it may cost you dearly to renegotiate your lease mid-contract.
When negotiating your lease, watch out for cheap first-year pricing. Often, costs rise substantially as you move into the next year of your lease or as your use increases, so look for these terms. Also, if you're upgrading to a new meter with the same company, check the new lease carefully to make sure you are minimizing your costs. In reality, the higher price of the new model may be hidden in second-year payment increases or much longer commitments.
Postage meters start at around $20 per month to rent. Any extra costs depend on whether you buy or lease the base (buying outright is usually cheaper), and whether you want to take advantage of ordering postage by phone ($5 to $10 per order).
Although it may be easier to order, it's rarely a good idea to get a "package deal" with a meter, base and scale combined. For example, adding a fancy electronic scale to your "package" might run an extra $15 per month rent, but a third-party vendor could sell you the same scale for just $100.
Mie-Yun Lee is editor of the Business Consumer Guide, editorial director of BuyersZone (http://www.buyerszone.com) and author of "The Essential Business Buyer's Guide." Call (800) 938-0088 for more information.