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On August 6, 2012

Postage Rate Increase

What the New Postage Increases Mean for Business

The Forever Stamp – New article on this innovative stamp.

The price of a U.S. First-Class postage stamp increased keeps increasing as well as the price of the Forever stamp. These increases may not seem like much to individual consumers, but anyone familiar with the postage industry knows that rate hikes will have tremendous implications for commerce.

The postage rate hike is intimidating for companies that rely on the mail to do business. Yet, it also presents a unique opportunity for companies to examine how they use the postal service. Many mailing service businesses do not take full advantage of the wide range of discounts offered by the USPS. With proper guidance, these companies can still save money on postage despite the proposed increase in postage rates.

Size and Shape
Did you know that the size and shape of an envelope can affect the cost of postage? If you did not, it is time to speak with a knowledgeable postal consultant to figure out the other opportunities you are missing. The fact is that the USPS offers lower costs for processing smaller envelopes. Therefore, your business may stand to save money by using standard #10 envelopes instead of flat 9×12 envelopes. Folding and inserting machines may also be able to save your business money by streamlining the mailing process and guaranteeing the consistency of your parcels.

Presort for Precision
The USPS also offers significant discounts for mail that is presorted before it enters the post office. The USPS offers these discounts because presorting mail saves the USPS time and money. Presorting can be done in-house through the use of sorting software, or companies can partner with an experienced postage expert to presort their mail for them. If your company is going to outsource its sorting needs to a third party, then it is essential for that company to have advanced sorting machines that will make the job much easier.

Clean Addresses Save Money
The USPS estimates that it spends $2 billion dollars a year handling mail that cannot be delivered to the address on the parcel. That is almost 1/3 of the USPS’s annual healthcare costs for all of its employees. That figure is also equal to the gross domestic product of Bhutan! The USPS would like to halve that number by 2010. In an attempt to do so, the USPS is offering tremendous discounts for companies that provide clean and accurate addresses on all of their parcels. In addition to the physical neatness of the addresses, they must be accurate. Therefore, it is imperative for businesses to team up with mailers who use the most up-to-date and high-quality mailing lists available.

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