Direct Mail (DM) Cost Market Rates | Breakdown of Postcard/Envelope Rates and Tips for Keeping Costs Down

"I want to send DM (direct mail) to promote new products or re-engage dormant customers, but I can't estimate the total cost." "I want to know the market price and how costs differ between postcards and envelopes."
When considering the implementation of DM as a marketing initiative, many managers hit a wall called "cost." Unlike Web advertising where you can easily set a budget from a management screen, DM costs are determined by a combination of multiple elements such as "planning and design," "printing," "list," and "shipping." Therefore, if you don't understand the entire mechanism, you risk incurring unexpected cost overruns or, conversely, cutting the budget too much and failing to achieve sufficient results.
In this article, for managers who want to grasp the cost sense of DM initiatives, we will thoroughly explain the overall picture of costs, concrete breakdowns, market prices by form (postcard/envelope), and "tips to keep costs down without reducing effectiveness."

The total DM amount is not determined simply by postage or shipping fees. It consists roughly of the following "four components."

Planning and Design Fees

Costs for setting DM objectives, selecting targets, and producing ad copy and layouts

Printing fees

Costs for paper preparation, printing, and processing (compression sealing, folding, etc.)

Address and List Fees

Costs for preparation of the mailing list, printing of address data, labeling, etc.

Shipping/Postage fees

Shipping/postage fees paid to the post office or delivery company to actually deliver the DM

Work costs for insertion, sealing, etc. (shipping agency fees) may also be included.
The sum of these four elements becomes the "unit cost (or total amount) per piece of DM." For example, if you "do the design in-house" or "already have an address list," you can keep costs for ① and ③ down. On the other hand, the factors that have the biggest impact on costs are "DM format (size/weight)" and "number of items sent."

Unit prices for printing, shipping, and postage vary significantly depending on whether it is a standard postcard, a pressure-sealed postcard with a large amount of information, or an A4-sized envelope containing a catalog or samples.

If you want to re-confirm the basic types, merits, and demerits of DM, please see the following article.

[Related Article] What is Direct Mail (DM)? A "paper and data fusion channel" being re-evaluated now

Here, we will explain in detail the breakdown and market price concepts for each of the four elements mentioned earlier. *The amounts presented are general market prices/estimates and will vary depending on the specifications and the requested vendor.

The cost for the creative work required to make the target "read and act."
Market price: Tens of thousands to hundreds of thousands of yen (all-inclusive)
Variation factors:
Utilization of existing formats or original design

If you utilize templates, you can keep costs down to around several tens of thousands of yen, but if you hire professional copywriters or designers to do the planning and photography from scratch, it is not uncommon for it to be on the scale of several hundred thousand yen.

Complexity of Form: Compared to a simple double-sided postcard, an envelope design that includes a multi-page pamphlet is more expensive.

The cost for printing and processing design data onto actual paper.
Market price: Several to several dozen yen per unit
Variation factors:
Quantity

The fundamental principle is that "the more you print in bulk, the lower the unit price per copy (volume discount)."

Paper and Color

Using special paper (thick paper, Japanese paper, etc.) or full-color (4C) printing will increase the unit price.

Processing

Costs are added if you include compression processing such as "V-fold" or "Z-fold," or special processing like adding perforations.

Costs for who to send to (list) and printing that as an address.
Market price
Address printing/labeling: Several yen to several tens of yen per item
List purchase (rental): Several tens of yen to several hundred yen per item (*when using an external list)
Variables

If you use your own customer database (house list), there is no cost for purchasing a list, but separate costs will arise if you request data cleansing (duplicate elimination or correction of old addresses) from a vendor. Additionally, the unit cost for the work varies depending on whether you print the addresses directly or output them onto label stickers and apply them.

The cost to actually deliver the DM to the target by mail or courier once printing and address printing are complete. This is the item that often accounts for the largest weight in total costs.
Market rate: Several tens to over 100 yen per item
Variation factors:
Size and weight

The base rate changes depending on whether it is postcard size, non-standard mail, or A4 size.

Correspondence or Non-correspondence

Catalogs or flyers containing the same content regardless of the recipient are "non-correspondence," but if they contain individual information that identifies or limits the recipient's attributes or usage status, such as "To [Name] who is using [Specific Smartphone Model]," it is considered "correspondence." When sending correspondence, you cannot use low-cost DM mail services (dedicated to non-correspondence) and must use Japan Post. However, when sending a large volume via Japan Post, you can use the "Advertising Mail" system, which provides discounted rates by submitting samples and receiving approval in advance.

*Postal rates and discount systems mentioned in this article have been subject to recent revisions (standard mail and postcards were revised in October 2024; basic Yu-Mail rates are scheduled to be revised in November 2025). Discount systems such as advertising mail also have conditions such as the number of items sent and prior approval, and discount rates and fee structures may change in the future. Please be sure to check the latest information from Japan Post and each delivery company before shipping to confirm actual fees and applicability.

Work Processes

In the case of envelopes, costs for manual labor (assembly), such as folding flyers, inserting them into envelopes, and sealing, are added.

DM shipping and mailing costs vary greatly depending on the delivery service used. It is important to choose the optimal service according to the number of copies, weight, and content (whether it is correspondence).

This is the most common and reliable shipping method.
Standard postcard

Because it can be sent compactly and inexpensively at a flat national rate, it is suitable for things like sale announcements and thank-you direct mail (DM) for store visits.

Standard/Non-standard Mail (Envelopes)

Includes size N3 envelopes (standard) that can hold a tri-folded A4 sheet, and size K2 envelopes (non-standard) that can hold an A4 sheet as is. Fees increase in fine stages depending on weight. The biggest feature is that you can send "correspondence." If you meet certain conditions (number of items sent, barcode printing, etc.), you can receive discounts on postal charges (such as the Advertising Mail discount).

A service suitable for sending "printed matter (non-correspondence)" such as books, magazines, and catalogs.
Features: You must keep the ends of the envelope slightly open or use a transparent window envelope so that it is in a state where the contents can be confirmed to be printed matter. In many cases, it can be sent more cheaply than non-standard mail, and it is useful for catalog DM that has thickness. However, since correspondence cannot be sent, it cannot be used for personalized DM where content is replaced for each recipient.

A delivery service specializing in catalogs and flyers (non-correspondence) provided by private delivery companies like Yamato Transport and Sagawa Express.
Features

Unlike postal mail, delivery is completed by posting in a mailbox. If within the weight and size limits, there are often cheap flat-rate or area-specific rates, which allows for powerful cost reduction when shipping in large quantities.

1. Reduce "Wasted Shots" with Segment Delivery
"Mass delivery," which sends the same DM to everyone on a list, maximizes both printing and shipping/mailing costs. By analyzing customer purchase history and attribute data and narrowing the delivery down only to "the segment likely to be interested in this product" or "the segment likely to be revived from dormancy" (segment delivery), you can significantly reduce total costs. Reducing the number of items sent not only lowers the overall cost, but since the content resonates with the target, you can expect an improvement in reaction rates.

Segment methods using your company's own customer data are explained in detail in the article below.

[Related Article] What are DM measures that utilize membership data? Segment strategies that lead to results

2. "Standardization" of designs and formats
Creating a design from scratch every time is a major factor that pushes up planning and design costs. By creating formats (templates) of designs that were effective for each purpose, such as "for sale announcements" or "for birthday DM," and managing them by just replacing photos and text, you can significantly compress production costs and lead times.

3. Utilize DM Mailing Services/Bulk Ordering
Splitting processes (separate ordering)—printing at company A, address printing at company B, and inserting/mailing by in-house staff—results in wasted costs and management overhead for data transfer and shipping between companies. By requesting a "DM mailing service agent" that handles everything from printing to inserting and mailing, you can eliminate intermediate costs and take advantage of the bulk discount rates (special rates) that agents hold with shipping carriers, significantly reducing the total unit cost per item.

4. Utilize DM Mailing Services/Bulk Ordering
Splitting processes (separate ordering)—printing at company A, address printing at company B, and inserting/mailing by in-house staff—results in wasted costs and management overhead for data transfer and shipping between companies. By requesting a "DM mailing service agent" that handles everything from printing to inserting and mailing, you can eliminate intermediate costs and take advantage of the bulk discount rates (special rates) that agents hold with shipping carriers, significantly reducing the total unit cost per item.

We have explained the cost breakdown and how to suppress them so far, but it is difficult to judge "what kind of specification is the most cost-effective for our list and purpose" only within the company.

BEEATS's direct mail marketing service goes beyond simple "low-cost shipping agency" services, providing one-stop, integrated support from creative production for planning and design, to address data processing, high-quality printing, and the arrangement of optimal shipping methods.

Data-Driven Planning

We analyze the member data you provide and support you from segment design, such as "who, what, and when to send." We prevent waste and maximize ROI.

ABM Support in BtoB

In the BtoB domain, especially for SaaS companies, we have strengths in supporting the execution of "ABM (Account-Based Marketing)," which involves narrowing down to specific key customers (target accounts) and sending personalized, rich DM.

Result Verification and Improvement

We don't end at just sending; we perform effectiveness measurement using QR codes, etc., and also propose improvement actions for the next initiative.
If you are a company thinking, "I want to improve the cost-effectiveness of DM" or "I don't know where to start for my first DM initiative," please consult BEEATS once.

[Related Article] Why SaaS Companies Should Re-focus on "Corporate DM" - A New Lead Generation Strategy

Q: What is the market rate for Direct Mail (DM) costs?

A: DM costs consist of four parts: "planning and design fees," "printing fees," "address/list fees," and "shipping/postage fees." The total amount varies greatly depending on the "form"—such as whether it is a postcard or an envelope—and the "number of items sent." For example, sending a few thousand simple postcards and sending tens of thousands of envelopes with catalogs result in completely different unit prices per item and total amounts. (Please refer to the text for details on how to think about the breakdown.)

Q: Which is cheaper, postcard DM or envelope DM?

A: Basically, postcard DMs can keep both printing and mailing costs lower. For this reason, they are suited for purposes such as promoting store visits and sale announcements. On the other hand, while envelope DMs are more costly, they can hold more information and allow for the sending of samples. In cases where improving customer loyalty or detailed product explanations are necessary, there are instances where envelopes are superior in terms of cost-effectiveness. It is important to use them differently depending on your budget and goals.

Q: How can I keep DM costs down?

A: The most effective method is to analyze customer data and narrow down the recipients to only the "high-potential segment" (segment delivery). This can reduce unnecessary printing, shipping, and postage costs. Also, utilizing design format standardization, using an agency that can bundle everything from printing to mailing, and applying delivery discount systems (bulk discounts, etc.) are also effective means.

Q: Can I request everything from DM production to shipping at once?

A: Yes, it is possible. At BEEATS, we handle everything from target selection, planning, and design to address printing, printing, and arranging the optimal delivery route. Our strength is that we can provide total support, from utilizing customer data to verifying results after shipping.