Pricing overview
Lob's pricing model is primarily usage-based for its Print & Mail API, meaning costs accrue based on the volume and type of physical mail pieces sent. For its Address Verification API, Lob employs a tiered pricing structure that includes a free monthly allocation before per-verification charges apply. This structure aims to align costs with actual consumption, offering scalability for both small and large-scale operations.
Key factors influencing Lob's pricing include the specific mail product (e.g., postcards, letters, checks), the dimensions and weight of the mail piece, the mail class (e.g., Standard Mail, First Class Mail), and the destination. Volume discounts are integrated into the pricing tiers for mail services, reducing the per-item cost as mailing quantities increase. The pricing for the Address Verification API is based on the number of successful verifications, with different rates for US and international addresses. All pricing details are publicly available on the Lob pricing page.
Plans and tiers
Lob offers a single API platform with different pricing tiers applied to its core services rather than distinct subscription plans. The primary services with tiered pricing are Print & Mail and Address Verification.
Print & Mail API Pricing
Pricing for mail items is calculated per piece and varies based on several attributes:
- Mail Type: Postcards, Letters, Checks, Self-Mailers.
- Size: Different dimensions for each mail type (e.g., 4x6, 6x9, 6x11 inches for postcards).
- Mail Class: Standard Mail (formerly Marketing Mail) offers lower rates but slower delivery, while First Class Mail provides faster delivery at a higher cost.
- Quantity: Higher volumes typically unlock lower per-piece rates.
For example, a 4x6 inch postcard sent via Standard Mail starts at $0.65 per piece. A 6x11 inch postcard via Standard Mail starts at $0.78 per piece. Letters can range from $1.00 to $1.20 per page for a single-page, double-sided letter, depending on the mail class and volume. Checks typically start around $1.40 per check for First Class Mail. These prices include printing, postage, and mail tracking. For a comprehensive breakdown of mail item pricing, refer to the Lob Print & Mail API pricing section.
Address Verification API Pricing
The Address Verification API offers a tiered structure based on monthly usage. After the initial free verifications, costs are incurred per successful verification. Lob differentiates between US and international address verifications, with international verifications typically costing more due to additional data provider fees.
For US address verifications, pricing might start at $0.05 per verification after the free tier, with rates decreasing for higher volumes. International address verification rates are typically higher. It is important to note that only successfully verified addresses are charged. For detailed pricing on Address Verification, consult the Lob Address Verification API pricing details.
Free tier and limits
Lob provides a free tier specifically for its Address Verification API. This free tier includes 300 free verifications per month. This allows developers and businesses to integrate and test the address verification functionality without immediate cost. Once the 300 monthly verifications are exceeded, standard per-verification charges apply according to the tiered pricing for the Address Verification API.
There is no explicit free tier for the Print & Mail API; all mail items sent through this API incur a charge from the first piece. However, Lob's sandbox environment allows for testing the Print & Mail API without incurring actual costs, as mail pieces created in the sandbox are not physically mailed. This enables full integration and workflow testing prior to live deployment and actual expenditure. Developers can access the Lob API reference for details on using the sandbox.
Real-world cost examples
Understanding real-world costs with Lob involves considering the specific services used, volumes, and mail classes. Here are a few illustrative scenarios:
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Small Business Marketing Campaign: A small business sends 500 4x6 inch postcards via Standard Mail to existing customers. At a rate of $0.65 per postcard, the total cost for the mailing would be 500 * $0.65 = $325.00. If they also verify 400 addresses before sending, and 300 are free, they pay for 100 verifications. At $0.05 per verification, this adds $5.00, bringing the total to $330.00.
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Financial Services Document Delivery: A financial institution needs to send 2,000 one-page, double-sided letters via First Class Mail. Assuming a rate of $1.20 per letter for this volume and mail class, the total cost would be 2,000 * $1.20 = $2,400.00. This includes printing, postage, and tracking. If 5,000 addresses are verified monthly, the first 300 are free. The remaining 4,700 verifications at $0.045 per verification (assuming a volume discount) would cost 4,700 * $0.045 = $211.50, totaling $2,611.50.
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High-Volume Transactional Mail: An e-commerce company sends 10,000 6x9 inch postcards via Standard Mail for promotional offers. At a volume-discounted rate of $0.70 per postcard, the total cost would be 10,000 * $0.70 = $7,000.00. If they perform 25,000 address verifications per month, and the first 300 are free, the remaining 24,700 verifications at a volume-discounted rate of $0.035 per verification would cost 24,700 * $0.035 = $864.50. The combined cost would be $7,864.50.
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Check Mailing Service: A company uses Lob to send 500 checks monthly via First Class Mail. At an estimated rate of $1.40 per check, the total cost would be 500 * $1.40 = $700.00. This includes printing, folding, envelope, and postage. Address verification costs would be additional if performed.
These examples are illustrative; actual costs depend on the exact specifications and current pricing listed on the Lob pricing page.
How the pricing compares
Lob's pricing model is generally competitive within the programmatic print and mail industry, often positioned against alternatives like PostGrid, Inkit, and Click2Mail. Comparisons typically focus on per-piece costs for various mail types, the transparency of pricing, and the features included in the base rates (e.g., printing, postage, tracking).
Lob emphasizes transparent, all-inclusive pricing for its mail items, covering printing, postage, and basic tracking within the per-piece cost. This contrasts with some providers that might itemize these charges separately or have less clear tiered structures. Lob's rates for standard postcards and letters are often comparable to or slightly lower than some competitors for similar volumes, especially for First Class Mail, which can be more expensive with other services.
For address verification, Lob's free tier of 300 verifications per month is a notable advantage for smaller users or those just starting out. Some competitors may offer a free trial period but not a recurring monthly free allowance. The per-verification cost post-free tier is generally in line with industry standards, which can range from $0.01 to $0.10 depending on volume and whether international addresses are included. For example, Google's Address Validation API also uses a pay-as-you-go model with a free tier, providing a benchmark for comparison in the address verification space.
The table below provides a generalized comparison of typical pricing structures and features among Lob and some alternatives. Exact pricing can vary significantly based on specific service configurations and negotiated contracts.
| Provider | Pricing Model | Starting Price (Example) | Key Features/Limits | Best For |
|---|---|---|---|---|
| Lob | Usage-based (mail), Tiered (address verification) | Postcards from $0.65 (4x6, Standard Mail) | All-inclusive per-piece mail cost (print, postage, track), 300 free address verifications/month. RESTful API with SDKs. | Automated direct mail, address data validation, transactional mailings. |
| PostGrid | Usage-based, often with volume discounts | Postcards from ~$0.70 - $1.00 (variable) | Global reach, enterprise features, advanced mail tracking. | International mailings, enterprises requiring extensive integrations. |
| Inkit | Usage-based, often with subscription plans for advanced features | Postcards from ~$0.68 - $1.10 (variable) | Focus on customer engagement, direct mail automation, integration with CRM/marketing platforms. | Marketing automation, customer retention campaigns. |
| Click2Mail | Per-piece usage-based | Postcards from ~$0.60 - $0.90 (variable) | Web portal for manual uploads and API, variety of mail products. | Ad-hoc mailings, users preferring a web interface, small businesses. |
When evaluating pricing, potential users should consider the total cost of ownership, including API integration effort, developer support, and additional services like advanced analytics or compliance features, which may not be directly reflected in per-piece costs. Lob's strong compliance posture (SOC 2 Type II, HIPAA, PCI DSS) can also be a significant factor for businesses in regulated industries, potentially justifying its pricing for enhanced security and reliability.