For me, this is HOBBY and I only do this when I have the cash to spare. I'm not going to go into debt to send out QSL cards, if that is what you are inferring I am doing.
Second, I send my cards in batches. Usually spread out quite a bit. For domestic, as you already pointed out, it's $0.46 per first class stamp. That means I can send and include an SASE for $0.92 per card. I think that's pretty cheap. I could factor in the card and envelope price, but when you buy a big enough bulk amount, the cost is really pennies per card. Also, I have my own thermal postage printer for my company, so I use that to print stamps and that really speeds up the process for me. Yes, I do have to buy the stamp rolls, but again, the price per is so small in the long run.
International used to be not so bad when you could put a single $1 in each one. Plus, the out going was only around $.90 each. That was less than $2 per card. Now you have to include at least $2 in greenbacks and the outgoing is $1.10. I have started to buy the $1.10 forever international first class stamps and that has made the process easier and faster for me AND the post office. For the international I tend to keep those batches to ten each and usually space those out by a few weeks. In fact, I know it's poor practice to hold cards this long, but just last week I sent out cards for QSOs I made at the end of 2012. Again, I'm not going to go into debt doing this. I do it when I can spare the extra $30-40.
As for return, in all honestly my international is right up there at around 90%. I have the return envelopes saved to prove it. I actually hang on to them for the neat return postage that I figure I'll give to the first serious stamp collector that comes along and wants them.
Domestic is probably around 80% for me. In general, US hams are really good at returning a card, even if they don't have one of their own and instead choose to print something out or even buy a post card and write the QSO info on the back. I have several of these in my collection. I think when I send an SASE, most hams realize that it's important to me that I get the return and I have also invested the money in the deal and they don't want to see that go to waste. I find most hams are pretty decent people
Wow! That's fantastic!
I did some quick calculations (or rather Excel did them for me)...
So far this year I have made 482 contacts and we are only 5 months into the year. Most of these are just ordinary QSO's, but I do participate in a contest every now and then. So let's say I slack off a little and only make 1000 contacts this year.
Let's also assume my ratio stays the same (38% domestic and 62% DX).
Domestic first class postage is $.46 and the 1 oz. rate for foreign postage is $1.10.
If I send a paper card with an SASE and $2.00 with every foreign card, the math shows that I would spend $2,272.00 in postage.
LoTW started 10 years ago, so that means that I would have spent $22,720.00 in the past 10 years. OK, first class postage in 2003 was only $.37, so let's roll back than number to something in the neighborhood of $20,000 in postage.
This is why I do not detest LoTW!
Now if I had only put those postage savings in a jar, I would have the IC-7800 by now... with plenty left over for an IC-7600 as a spare!
EDIT: I checked my LoTW return rate. Mine is just over 42%. I am curious what your return rate is?