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Posted by afn03488 on 02/11/06 21:14
Bob wrote:
> NF claims it costs 78 cents in postage alone. Bullshit. That's what an
> individual has to pay for First Class postage. NF has some sweetheart
> bulk mail deal with the USPS. I am not going to attempt to guess what
> the real cost is, but it sure isn't the same as putting 39 cent stamps
> on a letter.
For payment of an annual fee of $160 and mailing prebarcoded and
presorted lots of 500 or more each NetFlix warehouse can mail its
outgoing DVDs for between a low of 29 cents [sorted to an individual
letter carrier, can't be used if the destination PO has equipment for
scheme sortation] and 32.6 cents [residual automated pieces not
sorted to a finer level]. Most will probably go between 29.3 cents [125
pieces to a 5 digit zip code] and 30.8 cents [125 pieces to a 3 digit
zip code group/SCF].
For payment of annual fees of $8260 each return address can receive
high volume [34,615 pieces per quarter] prebarcoded pieces for 36.6
cents each. I'm assuming they meet the volume requirements for the
rates quoted and the pieces qualify for the single ounce rate. I'm
curious how they actually manage the inventory to envelope to required
postal sortation. I imagine they have justified the cost of internal
barcode sorters.
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