Dictionary of Marketing Terms: automation rate
automation rate
discounted postage rate for bulk mail that is prepared according to the requirements of the U.S. Postal Service's automated mail handling equipment. The automation rate requires that mail be bar coded according to the destination five-digit ZIP code, nine-digit ZIP code, or delivery point bar code and that it meet all size, weight, addressing, and readability requirements for the equipment. Automation discounts can be substantial, cutting postage by $0.05 to $0.10 per piece. The U.S. Postal Service estimates that one employee sorting by hand can sort about 800 pieces per hour as compared to 40,000 pieces per hour by an employee utilizing automated mail handling machines.
