How is the Estimated Campaign Cost calculated?

Having visibility of the cost of your direct mail campaign before ordering it empowers you to make strategic decisions, optimize your budget, and maximize the ROI of your marketing efforts.

In Step 4 (Review campaign) of the Lob Campaigns product in your dashboard, you can see the breakdown of the estimated cost of your campaign.

The estimated campaign cost is comprised of the following:

  1. Cost per mailpiece: includes the materials, postage, and production cost.

    Depending on what mailpiece you are sending, Lob may provide a further breakdown of the cost per mailpiece.

    • Postcards and self-mailers pricing will vary on the size of the mailpiece and the postage type selected.

    • Letters pricing varies on the sheets of paper, color, the postage type selected. Letters can be sent with additional mail services like Certified or Registered mail, which can also contribute to a higher cost.

  2. Recipients: number of mailpieces

  3. Sales tax estimate: The sales tax estimate is based on your historical rolling 12-month average with an additional 0.5% buffer. For new customers who have not yet sent mail, we use a 9% placeholder when estimating sales tax. (learn more about Sales tax)

After a campaign is ordered, we will calculate the final cost. The final cost could differ from the estimated campaign cost due to the following reasons:

  • Mailpieces that are never produced will not incur a cost; examples include recipients identified as undeliverable (thus mailpieces not created), or mailpieces whose creative fails to render.

  • A different sales tax estimate based on the specifics of your campaign. You can learn more about sales tax here.

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