How Storage Fees Work
Storage fees help you manage mailroom capacity while giving members a fair monthly allowance before any charges apply. This guide explains how the quantity-based storage fee system works and what to expect each month.
The Core System
Members receive a set number of mail pieces each month before storage fees apply. Once they exceed this allowance (called a threshold), a flat monthly fee is charged.
Key Points:
Separate thresholds for correspondence and packages
Flat monthly fee when threshold is exceeded
Count resets to zero on the 1st of each month
7-day grace period at end of month
What Counts Toward the Threshold?
Storage fees only apply to mail that remains unprocessed at the end of the month.
Mail that DOES count:
Uploaded: Mail that has been scanned but not processed
Open and scan: Mail that has been viewed but no final action taken
Mail that DOES NOT count:
Picked up: Member collected the mail
Forwarded: Mail shipped to member's address
Shredded: Mail disposed of
Leave at office: Mail left at the member's office
Important: Any final action (pickup, forward, shred, leave at office) removes mail from the count. Members who actively manage their mail throughout the month can avoid storage fees even if they receive high volumes.
The 7-Day Grace Period
Mail assigned to a member in the last 7 days of the month does NOT count toward their threshold.
This grace period prevents situations where mail arrives at the end of the month and members don't have enough time to process it before the billing cutoff.
Example:
Example:
Month: January (31 days)
Grace period: January 27-31
Mail assigned on January 28: Does NOT count toward January threshold
Mail assigned on January 24: DOES count toward January threshold
Mail Categories
Storage fees are calculated separately for two categories:
Correspondence: Standard mail, perforated envelopes, padded envelopes, magazines
Packages: Any kind of box, larger parcels and shipments and mail items that don't fit the correspondence description
Note: Each category has its own threshold and storage fee. Members can exceed one category without exceeding the other.
How Billing Works
End-of-Month:
On the last day of the month at 11:50 PM:
PilotoMail counts unprocessed mail for each mailbox
Excludes any mail assigned in the last 7 days (grace period)
Compares the count to the mailbox threshold
Applies flat storage fee if threshold exceeded
Resets count to zero for the new month
Billing Examples
Example 1: Under Threshold
Example 1: Under Threshold
Month: January
Correspondence threshold: 50 pieces
Correspondence received: 49 pieces
Unprocessed at end of month: 49 pieces
Result: $0 storage fee
Example 2: Over Threshold
Example 2: Over Threshold
Month: January
Correspondence threshold: 50 pieces
Correspondence received: 55 pieces
Unprocessed at end of month: 55 pieces
Result: $25 storage fee (flat rate)
Example 3: Processed Mail Doesn't Count
Example 3: Processed Mail Doesn't Count
Month: January
Correspondence received: 60 pieces
Processed (forwarded/picked up/shredded): 45 pieces
Unprocessed at end of month: 15 pieces
Correspondence threshold: 50 pieces
Result: $0 storage fee
Example 4: Both Categories Over Threshold
Example 4: Both Categories Over Threshold
Month: January
Correspondence unprocessed: 55 pieces (threshold: 50)
Packages unprocessed: 12 pieces (threshold: 10)
Result: $25 (correspondence) + $50 (packages) = $75 total
Example 5: Grace Period
Example 5: Grace Period
Month: January (31 days)
Correspondence threshold: 50 pieces
Unprocessed mail on January 24: 48 pieces
Mail assigned on January 28: 5 pieces
Total unprocessed: 53 pieces
Grace period excludes: 5 pieces
Counted toward threshold: 48 pieces
Result: $0 storage fee (under threshold)
Member Notifications
PilotoMail automatically notifies members when they're approaching or exceeding their threshold:
7-Day Warning (Day ~24 of Month)
Triggers when member has exceeded threshold with 7 days remaining
Sent via email
Includes current count vs. threshold, estimated storage fee, and available actions
1-Day Final Warning (Last Day of Month)
Triggers when member is still over threshold with 1 day remaining
Sent via email
Final opportunity to process mail and avoid the fee
In-App Banner (When Over Threshold)
Displays continuously on member dashboard
Message: "You're over your storage limit. Request scanning, forwarding, or shredding to avoid storage fees next month."
Remains visible until member drops below threshold
Ready to configure storage fees for your location? Learn how in our Setup Storage Fees guide.
Need Help?
If you have questions about how storage fees work or need help explaining them to your members, we're here to help.
Contact us at support@pilotomail.com or click the chat bubble in the lower right corner of your screen.