Not just a simple rate increase.
The new USPS rates are re-engineered
How the savvy direct mail advertiser can manage this change to their advantage.
Ouch! Postal rates just went up again...and I spent an hour looking for two-cent stamps.
Compared to the high-altitude price of high-octane gasoline, a couple extra pennies doesn't seem like an unreasonable bump. It now costs two cents more in postage to send a one ounce first class letter (41 cents) or a standard postcard (26 cents). The last time you needed those extra two-cent stamps was to cover the postal rate increase of January 2006.
But wait...what's this? Some rates are lower?
Of course, postage costs in business add to overhead and the general cost of doing business. But if direct mail is a tool in your marketing game plan-letters, newsletters, postcards-you'll want to take added care that you're doing everything you can to maximize your Return-on-Investment.
And-surprise!--the latest rate changes could actually save you a few bucks...if you're a savvy direct mail marketer and know how to fine tune the strategies and tactics of your plan.
Consider these pointers...
The two-ounce rate is down. The one-ounce first class letter is up 2-cents, but the rate for letters weighing over one ounce and up to two ounces is now down by a nickel. Other categories and weights have also gone down, so under certain circumstances, it is possible that you could actually save money.
Also consider the shape and size. Having your direct mail standout in the mailbox breaks through the clutter and gains reader notice. But wildly odd-size mail cost the USPS more to process and deliver, so new rates provide an incentive to encourage the use of more "standard" sizes.
For first time the postal service presents "shaped-based" pricing and there are ways to play this little "silver lining" to your best advantage. It can be cheaper to send heavier items in smaller packages than to send a lighter item in a larger package. You may avoid stiff rates and qualify for better rates if you configure (or reconfigure) your mail piece.
It's important to remember that there are many variables in preparing an effective creative message. You've heard us talk about the basic formula of problem-solution-why you-offer-deadline. With direct mail, in addition there is the quality of the list and the creative execution. And finally, exactly what's "standard" in USPS terms will vary according to classification and other variables.
Confused? If you need some help sorting-out these moving parts, please give us a call. We can help.
Use only accurate lists and address info. The postal service looses money on mail that it cannot deliver. If your direct mail program includes renting a list, or if you are using your own database, be sure that addresses are current, correct and complete...right down to the last plus-4 zip and carrier route pre-sort. The cost of doing large and inaccurate mailings can have a serious rate disadvantage. It's better to pay a little extra for a quality-assured list than it is to pay a lot more in postage.
Hint: Use a "CASS-Certified" Mailing List. Better quality mailing lists will be certified as accurate and having deliverable addressing information (Coding Accuracy Support System.) There are software solutions to win this certification, which also qualifies larger mailing for a rate advantage, or a professional mailing house will provide the service.
Use a letter shop or mailing service. Any serious quantity of direct mail does not belong in your office-you need professional to do the printing, folding, stuffing, addressing, postage and most importantly...getting things right with the United States Postal Service. Experienced letter shops are equipped to handle the mechanics, but they also know how to qualify your direct mail marketing for the lowest rates in compliance with bar coding, zip and carrier route sorting...as well as regulations, permits and paperwork.
Get help and advice from your Uncle Sam. The USPS is "quasi-governmental," so the Uncle Sam analogy might be slightly off-point. But even as a "statutory monopoly" they want and encourage your direct mail business and they're willing to help.
Of course, you can visit your local post office and ask questions in person. Online, www.usps.com is the primary USPS Website for easy-to-navigate consumer information. What you may not know about is www.delivermagazine.com, an informative and creative USPS online magazine site about direct mail. There is a print version of Deliver Magazine which you can request, which of course will be sent by regular mail.
I'm happy to report that this email message is substantially lower in cost than any of the new postal rates. But your direct mail program requires even more careful and creative management. Fortunately, there are some opportunities to take advantage of the new rate scheme and actually save a few bucks.
If you'd like our help in getting your head around this-and how to best manage your direct marketing plan under the new rates–please call us at 888-679-0050 or drop us a note via: info@healthcaresuccess.com. The phone call is toll-free, and our two-cents worth just might be priceless.
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