Direct mail marketing may be seen as a little outdated in the digital era, but it remains a viable and cost-effective channel when done properly. Before launching, however, it’s important to understand how much a direct mail campaign will cost. This will help you to understand the costs against potential benefits and to make the most of this tried and proven marketing technique.
Here we will take a look at the key elements of direct mail UK costs, along with budgeting tips and ways to control costs and how using an expert partner like PSC Systems’ direct mail marketing service can help.
Key Cost Elements of a Direct Mail Campaign
There are a number of potential elements that can contribute to the overall direct mail UK cost of a campaign. These can vary depending on the precise requirements of the campaign but will typically include elements of printing and materials, list management, postage, and service and operational costs.
Specific cost elements include:
- Printing of mail piece: This is the production of the physical mailout that will be sent to customers and prospects. Cost variables can include the design, paper stock, size, colour and finishing of the piece. PSC Systems offers a wide variety of print options including pieces such as flyers, business cards, brochures, leaflets and vouchers.
- Personalisation/variable data printing: Personalisation or variable data printing (VDP) allows for the creation of unique print pieces within a single run. This targeted approach can be more effective, but will add to the costs.
- Envelope or mailpack: The type of envelope used such as plain, window, poly-wrap or any special finishing can affect costs.
- Address list / data processing: The address list is one of the most important elements of a successful direct mail campaign. Purchasing or cleaning mailing lists and carrying out data hygiene measures can all add to the costs.
- Postage and delivery: This will account for a sizable part of the budget but there will generally be bulk mailing discounts whether you use Royal Mail or another carrier. Direct mail rates can vary by volume, geography, format and other factors.
- Mail-fulfilment & packing: This can include labelling, inserting and packaging. PSC Systems offers mail fulfilment services for all types of mail.
- Design and artwork costs: This can include one-off creative costs for copywriting and artwork, as well as pre-press proofs.
- Tracking/response codes: These can include QR codes, personalised URLs and incentives for response tracking.
- Campaign management & administration: This can include elements such as planning, scheduling and analytics to gauge the success of the campaign.
Typical Cost Ranges and Examples
Every campaign is different but some examples could include:
- A relatively small SME campaign, involving 5,000 pieces.
Cost elements include the printing, personalised envelopes, management of mailing list and UK postage.
5,000 pieces might average out at around £2-£4 per piece (depending on the format), for a total cost of £10,000-£20,000.
- A mid-size campaign of 50,000 pieces.
This could provide a bulk-print discount on printing and associated costs, including regional mailing.
50,000 pieces might bring the cost down to around £1.50-£2.50 per piece, for a total cost of £75,000 – £125,000.
- A large national campaign of 500,000-plus pieces.
This will yield significant bulk savings on printing and postage costs. Working at scale also means that other costs such as design cost less per piece.
500,000 pieces could see the costs drop below £1.00 per piece, for a total of £500,000 or less.
In general terms, bigger campaigns will tend to lower the price per piece but these are all ballpark figures and you should get quotes ahead of planning or launching any campaign.
Again, it’s worth remembering that factors such as format, size, personalisation and location can all substantially affect costs.
Hidden Costs and Cost-Control Tips
They aren’t exactly hidden costs but there are some potential costs that you should be aware of that might not be initially apparent.
These can include design revisions if the originals fail or are unsuccessful, newly announced changes in postal rates, processing returns or undeliverable mail and the costs of complying with GDPR requirements in the storing and handling of data.
There are a number of things you can to do help keep control of your costs, including:
- Choose standard formats (such as A5/A4 sheets) to reduce print cost.
- Use regional rather than national splits if on a start-up or limited budget.
- Use fewer personalisation fields.
- Pre-clean your mailing list to reduce returns and wasted cost.
- Combine printing and mailing services with same supplier to reduce handling costs.
- Leverage PSC Systems’ bulk mailing and fulfilment discounts.
Calculating ROI and Value
While there are lots of costs and benefits to measure, the basic calculation of return on investment (ROI) is a simple one.
- Number of responses × average value of response – cost of campaign = ROI.
The most straightforward way of working out ROI is when the campaign leads directly to measurable sales.
For example, a small campaign of 5,000 mail pieces costs a total of £15,000. It produces a 2% success rate with each hit representing an average sale of £250.
2% of 5,000 is 100 so: 100 x 250 = £25,000 generated revenue.
£25,00 – £15,000 = £10,000 for a positive ROI.
Tracking and measuring these sales is vital for evaluating the success of a campaign and planning future ones. Methods you can use can include tracking codes, dedicated landing pages and telephone numbers.
Why Use PSC Systems for Print and Direct Mail Campaigns
Direct mail has a number of strengths. It has tangibility, less digital noise and high response rates in certain verticals. It’s important to partner with the right provider though, in order to leverage their expertise and get value for money on the costs.
PSC Systems has a complete in-house print and direct mail capability in the UK, centred in Wirral and the North West. This means they can offer print and mailing under one roof, reducing handling costs and complexity.
They also have a transparent quote process and years of industry experience. If you’re looking to make use of the proven effectiveness of direct mail marketing, contact PSC Systems for more information today.
Posted on Thursday, November 13th, 2025 at 1:16 pm in Latest News.