Mailing services post gains

Offers something for everyone

by Christopher Key

Neither rain nor sleet nor dark of night will stay these entrepreneurs from offering a plethora of services to their busy customers. From huge, state of the art operations to businesses operated out of the basement, Whatcom County’s mailing businesses offer options ranging from comprehensive to very specific.

Blaine’s Automated Mailing Services is the largest such facility north of Everett. Dave Freeman started the company in 1985 when he purchased an existing mailbox business.

“There are a lot of Canadians who need US mailing addresses,” he said. “Soon, we found that Canadians companies needed more than just a mailbox, so we started providing other services. By the early 1990s, the volume justified investment in sophisticated equipment. In 1999, we planned the new facility and moved in a year later. We saw the need and built to it.”

Now, AMS is actually two companies in one.

“We serve as a distribution center, or fulfillment house, for about 40 to 60 Canadian suppliers,” Freeman said. “That’s about half of what we do. The other piece is freight forwarding into Canada for US companies. We realized the potential for US business and now we’re weighted about 70 – 30 toward US clients. The freight market is very competitive. Clients are looking for more than just price. They want quality.”

The new facility includes security features that enable AMS to work with proprietary mailing lists or governmental functions such as absentee ballots.

“It’s like a building within a building,” Freeman said. “We can lock down as needed for secure mailings.”

AMS has the latest whiz-bang machines to meet customer demand.

“We have an official US Postal Service verification system that tracks mail using bar codes,” Freeman said. “That’s part of our internal database. We have labelers, tabbers, inserters that can handle pieces up to 9x12 inches. We have laser imaging equipment that can produce 12 to 15 thousand personalized letters per hour. Our technology and database management tools give the customer the best value for the mailing dollar.”

Down time on those fancy machines can cost a lot of money.

“We have our machine operators shadow the company technicians when they are here,” Freeman said. “That way, we can handle about 90 percent of our own maintenance and repair issues. But we still have techs on call. In this business, there’s no room for error.”

The company works with a courier service from White Rock so that Canadian businesses can send US mail without using the frequently unreliable Canada Post. All of these operations can be viewed from a mezzanine level office that serves as a great marketing tool.

“Mail is still our bread and butter,” Freeman said. “The distribution business grew out of that.”

The bulk mail part of the operation grew to the point that Freeman needed some specialized help. Dale Vander Stelt spent 16 years managing Tribune Commerical Printing in Lynden before coming to AMS.

“I needed someone who had a lot of experience in management and scheduling,” Freeman said.

Because the American dollar has great buying power for printing in Canada, AMS works with firms that have sales representatives throughout the US. The gap between Bellingham and Blaine is not a problem.

“We offer free pickup in Bellingham,” Freeman said. “After all, it’s only 15 minutes away.”

Over the years, AMS has acquired a lot of knowledge about the ins and outs of the postal system.

“Printers need to be mail savvy,” Freeman said. “Marketers who are designing direct mail pieces need to understand the rules and regulations. We can consult with them on the design process and help unravel the mysteries. Learning all those technicalities can be pretty daunting.”

The bulk mail end of the business is project driven.

“We have a total of 13 employees in freight and administration,” Freeman said. “There are also a lot of part timers we can bring in as necessary for big projects. It’s extremely difficult to get good people. Once we find them, we keep them by paying them what they’re worth and offering an excellent benefits package. There’s quite a steep learning curve when learning this business and it’s critical to get things right when you’re dealing with the post office. We’re still small enough that it’s a real family atmosphere.”

Time, as the saying goes, is of the essence.

“One of the things that separates us from the competition is our ability to complete projects quickly,” Freeman said. “According to our customers, our turnaround time is unparalleled in the industry. Nobody makes any money when mail is just sitting around on the floor. It should be easy for clients to hand off a mailing to us and not have to worry about it.”

Marketing has changed over the years.

“Word of mouth is still the biggest factor,” Freeman said. “The last two years, we’ve extended our marketing efforts by adding sales staff and attending trade shows. We’re constantly updating our image. Word travels when you perform well.”

AMS wasn’t immune to the impacts of the Sept. 11 terrorist attacks.

“Marketing dollars shrunk for a while,” Freeman said. “US companies pulled back. Canadians pulled back both because of the dollar differential and border hassles. We certainly saw our volume drop, but it has bounced back to the point that we are posting new highs.”

The company continues to build infrastructure.

“Our ability to handle any volume of mail will help set us apart,” Freeman said. “We want to solidify our regional presence over the next five years and will do whatever it takes to accomplish that.”

At the other end of the scale is Bulk Mail Services in Ferndale. Jim and Carol Erickson operate the business out of their basement and got started nine years ago doing mailings for a graphic designer. Jim’s day job is as a mechanic for Motor Trucks.

“We sort of started the business through the back door and branched out from there,” Carol said. “We haven’t really done any marketing and we learned the business through on the job training and a video from the post office.”

Marketing efforts may increase when Jim retires.

“We just grew by word of mouth after that first mailing,” Jim said. “Sometimes there’s a huge amount of mail through here. The post office has sent people to us and we have an ad in the yellow pages.”

Most of their business involves newsletters, ad fliers and gallery walks, but they also do mailings for the Ferndale School District.

“Our customers come from all over Whatcom County, but we also have customers we’ve never met from California and Texas,” Carol said. “Most of our mailings run from one to five thousand pieces, so we really don’t compete with the big boys. Sometimes our kids help out and we’ve even brought in our neighbors.”

There have been a few mailings where they’ve had the entire garage and basement full of flyers or catalogues.

“We have a good relationship with Automated Mailing Services and often refer people back and forth,” Carol said.

Bulk Mailing Services started with about $20,000 in capital investment.

“We’ve been looking at new machines that print four times faster at half the cost,” Jim said. “Software has gone up a lot. It costs us about $1,500 a year for our subscription software.”

They emphasize that their expertise will end up saving businesses money over doing mailings in house.

“Some customers want to micromanage, some just say, ‘Here it is. Do it,’” Carol said. “Asking the right questions is important. Do you really want to do bulk mailings yourself? We’re familiar with both Macs and PCs, so we can help you with design.”

Speedy Automated Mailers in Bellingham began as a printing company in a basement, but didn’t stay there very long. They moved into mailing services and into their present location on Queen Street in 1992. John Sleeth now owns a whole building of business condos in addition to the mailing service. Speedy has eight employees.

“This is a service industry and pay isn’t very high in the beginning,” Sleeth said. “Most of our job applicants aren’t qualified, so we train rather than trying to seek out people with experience.”

Once employees are on board, Sleeth offers them full benefits along with flexible working hours.

“In addition to complete mailing services, we are a distributor for postage meters and mailing equipment – the only one north of Seattle,” Sleeth said.

Customer service is the top priority.

“We offer free pick up and delivery and help customers any way we can,” Sleeth said. “We’ll send one of our computer people out to help you with technical problems or database management. We’ll do as little or as much as necessary.”

Speedy serves Whatcom, Skagit, Island and San Juan counties.

“Our customers can take advantage of our in house mailing lists and we can purchase demographics that we don’t have,” Sleeth said. “We can do basic printing and complete fulfillment services.”

Canadian business has revived a bit recently, although it tends to fluctuate with the dollar.

“Our people are very knowledgeable about border issues, rates and tariffs,” Sleeth said. “We also maintain a Canadian address and deal with official Canada Post representatives. It’s very enjoyable helping other businesses.”

Robert Hardy spent 22 years in the military. When he got out, he knew he didn’t want to take orders from someone else.

“I worked in supply, so I was pretty familiar with shipping,” Hardy said. “There were several stores for sale when I was looking, but this Fairhaven location seemed to fit.”

He purchased Fairhaven Post and Parcel in 1991.

“It was an easy transition for me,” Hardy said. “I checked out franchise operations, but didn’t want to pay the fee. I didn’t know much about the business side when I started and should have sought out help. That might have eased the problems. I had to learn that all those nickels and dimes add up.”

Hardy originally tried to price below everyone else.

“That didn’t work,” he said. “I really didn’t understand cash flow. People are price conscious, but are willing to pay more for convenience and service. I made some mistakes in advertising and marketing.”

Fairhaven Post and Parcel offers full UPS and postal services and is renegotiating with FedEx after some difficulties. There are two black and white copy machines, a fax service, and a wide selection of shipping supplies and greeting cards. Hardy will also do the packing for you, along with making keys.

“It was basically just private mailboxes when I bought the store and I’ve expanded a lot since then,” Hardy said.

Even though the store is off the beaten path, it has become a fixture in Fairhaven.

“I’ve taken the time to get to know people,” Hardy said. “If you treat everyone the way you’d want to be treated and offer personalized service, they’ll keep coming back.”

The business uses Postal Mate, a state of the art mailing system that features computer tracking.

“Most stores like this are in major shopping areas,” Hardy said. “This is more like the corner grocery store. Once the neighbors realize you’re here, they’ll use the facility.”

Hardy belongs to an association called Neighborhood Postal Centers, which was formed in response to the major franchise operations.

“I pursue my own individual marketing strategy, but 2,200 stores banding together enables me to take advantage of bulk discounts on shipping products,” Hardy said. “That helps me compete. I also maintain accounts for local businesses who want to be billed on a monthly basis. I found out that the majority of shipping in most families is done by women. That’s when I decided to add greeting cards. Now, 80 percent of my customers are women.”

The biggest challenge is the holiday season.

“Volumes can be enormous,” Hardy said. “It was pretty crazy the first few years. I was overwhelmed the first year and got nailed again the second year. It’s pretty much under control now. It’s busy, but I can handle it.”

Whatcom County offers a variety of businesses that can help you avoid those long lines at the post offices and can help you avoid using inexperienced staff to deal with bulk mail and fulfillment. These entrepreneurs have taken that old letter carrier’s motto to whole new levels.