Convert To Electronic Postage Meters Before It's Too Late

By Michelle Brown

If you’re still using a mechanical meter to slap postage on business letters, time is running out. Soon electronic postage meters will replace mechanical meters. And you don’t have an option. In an effort to thwart postage meter fraud, the U.S. Postal Service has ordered an estimated 780,000 meter customers to convert to electronic meters. By March 31, 1999, all mechanical meters must be taken out of service.

How can you tell if your meter is mechanical or electronic? Mechanical meters have register displays with ascending and descending dials that move by mechanical means. On the other hand, electronic meters have liquid crystal displays (LCD) controlled by computer chips or microprocessors. If you’re in doubt as to which type you have, contact the manufacturer.

The Postal Service has found that mechanical meters are more susceptible to illegal tampering than electronic meters. Unscrupulous users can tinker with the wheels of these devices and print postage without paying for it. In fact, the Postal Inspection Service estimates that meter fraud losses exceed millions of dollars annually. Mechanical meter fraud represents the lion’s share of this revenue loss. Ultimately, this loss is passed on to consumers.

Electronic meters appear to be the solution to this costly problem. The new technology has proven to be a more secure option. As a result, the Postal Service decided to make electronic meters the standard. By working closely with the four authorized meter manufacturers—Ascom-Hasler Mailing Systems Inc., Neopost, Pitney Bowes Inc. and Postalia Inc.—the Postal Service has tried to minimize the impact on mechanical users and ease the transition. The manufacturers have assisted in the decertification effort by offering incentives to encourage mechanical meter users to convert early.

Although an increase in conversions is expected as the deadline approaches, a last minute mad rush to upgrade is not expected. “We have made great strides in converting our customer base to the new technology,” says Jeff Marshall, director of marketing for Pitney Bowes. “About 80 percent are already upgraded.”

Tom Hathaway, national sales manager for Neopost agrees. “Many users opted to make the change to electronic meters earlier than required.”

That doesn’t mean you should wait until March 30 to trade in your old meter. Marshall says it generally takes 30 days to get a new system up and running. “However, depending on the equipment, it could be substantially less,” he adds.

In addition to being more secure, electronic meters offer many significantly improved features and benefits at about the same cost as their mechanical counterparts. This could explain why so many customers have made the switch earlier than required.

For instance, Hathaway says that older mechanical meters had to be physically transported to the post office to be refilled with postage. “The electronic versions can be reset over the phone, avoiding a trip to the post office altogether and saving time.”

The new devices can also save money because they take the guesswork out of postage requirements. “Electronic meters automatically set the amount of postage needed for a letter or parcel when it is weighed on an electronic scale connected to the meter,” explains Hathaway.

The Postal Service estimates that accurate weighing can save businesses at least 20 percent of shipping costs.

In addition, Marshall says that electronic meters come equipped with enhanced accounting capabilities that allow businesses to better track their postage costs. For instance, you would be able to trace your postage costs to one specific customer. He also says that the new meters are faster, quieter, easier to operate and have a sleeker, more modern look than their mechanical counterparts.

If your business does major mailing and you’re not currently using a metering system, perhaps now is the time to upgrade your mailroom. Marshall says that meters deliver several advantages beyond saving trips to the post office. “Meters offer businesses more security than just having stamps lying around,” he says. “Being able to accurately track your postage costs is also a big plus.” Marshall adds that meters give small businesses the ability to make their mail look more professional.

Another big advantage is not having to worry about adjusting your schedule to meet the post office’s hours of operation. “With meters you are able to get postage even when the post office is closed.” Marshall says.

Conversion Survival Tips

Meter migration doesn’t have to mean chaos in the mailroom. With a common sense approach, it’s possible to have a smooth transition without going postal. Tom Hathaway from Neopost gives this action plan for small businesses facing the big switch.

• Contact your postage meter manufacturer to determine if your current meter has been decertified.
• Assess your present and future mailing needs to see what features and capabilities are required.
• Compare features, options, operating capabilities and cost from all vendors.
• Consult other users to see if the equipment lives up to the supplier’s promises.
• Solicit input from employees who will be operating the equipment.
• Consider modular equipment, which allows you to upgrade in the future without having to replace the entire system.

 

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