By: Cindy Sims

Just when you...

Think as a direct marketer you have the postage rates nailed, the Post Office increases them (again!). The good news is these price hikes teach us to be smarter about our mailing strategies, using list hygiene and sorting techniques that allow us to mail at the lowest rates possible.

 

Although the coming year’s increase is the first since 2009, the bottom line is postage will continue to increase incrementally over time. It’s part of doing business (at least in the collateral direct world), and our job is to adjust our practices to make sure we’re getting the best value for our postage dollar.

Below is a summary of the 2012 rate hike.

Date of increase: January 22, 2012
Services included: First-Class Mail, Standard Mail, Periodicals, Package Services and Extra Services, such as shipping services.
Average price increase: Capped by law at 2.1% (the rate of inflation by the Consumer Price Index)

 Rate increases for First-Class Mail:

· Letters (1 oz.): 1-cent increase to 45 cents.

· Single-piece letters additional ounce rate: unchanged at 20 cents.

· Postcards: 3-cent increase to 32 cents

· Letters to Canada or Mexico (1 oz.): 5-cent increase to 85 cents

· Letters to other international destinations: 7-cent increase to $1.05

· The second ounce will be free for First-Class Mail Presort pieces weighing between 1-2 ounces.

Rate increase for Standard Mail:

· The price increase is slightly below the overall average at less than 1.9 – 2.12%

Percentage of price change by class of mail:

· First-Class Mail: 2.133%

· Standard Mail: 2.124%

· Periodicals (magazines): 2.133%

So, what does all of this mean to direct marketers?

First, you will pay more per piece to mail anything — period. Second, you will need to refine and clean your lists as much as possible to continue receiving Standard Mail discounts. Third, start or continue to use Intelligent Mail Barcode (IMB) so your mailings are as automated as possible — less work for the Post Office means savings for you.

Most of all, be strategic and practice what you preach as a direct marketer. The 40/40/20 rule still applies to anyone mailing in large quantities: your LIST is 40% of your success, the OFFER is 40%, and CREATIVE is 20%.

About BKV
Established in 1981, BKV is a direct marketing and interactive agency specializing in helping marketers meet business goals with strategies that generate leads, convert those leads into sales and finally, into established and loyal relationships. The company uses a combination of traditional and digital media along with high performance creative and strategies that ensure we're driving response while measurably growing clients’ brands and sales. With offices in Atlanta and Kansas City, BKV serves local, national and international clients and is a member of the ICOM Agency Network, a professional association of marketing and advertising agencies from all over the world. Want more information? Visit BKV.com or