Catalog and Direct-Mail Challenges in 2008: “Postage Increases – Working With USPS’ Initiatives”

In addition to paper and freight cost increases, direct-marketers have also been hit with the most substantial cost yet: postage increases. The most recent postage increases are intended to have their customers automate their mail as much as possible or pay the cost for them to handle less-automated mail.

One of their proposed solutions is a “letter class rate”, which is a lower postage rate for mail that is essentially “machine-ready” mail. The basic requirements for letter class rate are:
1.) is not larger than a final size of 6-1/8” X 11-1/2” and not smaller than 3-1/2” X 5”.
2.) must have an outer stock (i.e. the cover) no lighter than 50# text.
3.) must have the address running along the longest side (i.e. along the 11-1/2”).
4.) must have two tab closures.
5.) cannot weigh more than 3.0 ounces.

Anything weighing between 3.0 and 3.3 ounces, but meets the other letter-class specifications will receive a non-automated letter-class postage, which will be slightly higher than letter-class, but lower than flat-class. For anyone who doesn’t want to compromise the specifications of their catalog, there is another solution: co-mailing.

Unless you’ve been under a rock for the past five years, in some shape or form, you’ve heard the terms “co-mailing” or “co-mingling”. Co-mailing or co-mingling is the combination of multiple catalogs/magazines with other “titles” in a single process, that are ink-jetted, sorted, and bundled together to achieve a significant pre-sort postage discount.

In addition to a huge postage discount, co-mailing also insures a higher quality and timelier in-home delivery. And while a few major long-run printers used to be the only providers who could provide this service, this service can be achieved via “off-line” co-mailing.

When analyzing a mailing, take into consideration all of the costs associated to the job, as all costs play a major factor in choosing the most optimal printing/mailing solution for you. Such relevant costs are:

1.) Pre-press, printing, and production,

2.) Any necessary freight to outside vendors or your location,

3.) All mail prep costs,

4.) Approximate postage,

5.) Any in-bound freight charges.

Looking at the full-picture is truly the best way to manage your costs.

Catalog and Direct-Mail Challenges in 2008: “Sustainable Printing – Hindrance to Some; Revenue Center to Others”

If you’re anything like me, you too feel the concerns over being more environmentally aware. We recycle everything we can: paper, plastic bags, bottles and containers; we try to manage and improve our resources (e.g. $4-a-gallon gas, our food supply, the air we breathe, the protection of our ozone, etc.); what we can’t recycle, we dispose of properly to keep our environment as unaffected as possible. Though I (just like everyone) could be better; but we do the best we can.

Groups like Forest Ethics try to manage the consumption of endangered forests by first kindly asking, and then second, if need be, forcing via public humiliation (which for some large catalogers turned ugly very quickly). Though, many catalogers and direct-marketers look at the growing concern not as a hindrance, but as an opportunity to capitalize on their market. An article entitled “How Green Are Your Consumers” by Laurie Banks (The Portland Press Herald, Friday, April 27, 2007), defines three segments of eco-concerned consumers as:
1.) “9 percent are True Blue Greens - defined as most interested and typically an influencer of others; highly educated with higher incomes.”
2.) “6 percent are Greenback Greens - these people vote with their pocketbook. They are interested in environmental issues but not always willing to spend that extra cash. They are unwilling to sacrifice comfort and convenience.”
3.) “31 percent are Sprouts - a marketer's dream, these environmental fence-sitters are undecided consumers. They evaluate environmental issues one at a time and are willing to listen and compare each purchase to their personal benefits or costs.”

So not only does sustainable printing help you sleep easier at night, but it also has marketability! So with that being said, here are a handful of goals that will help make your project more environmentally sustainable.
1.) Forest Stewardship Council or FSC certification: this initiative is a chain-of-custody certification in which a paper is logged, milled, and manufactured to insure total protection of the wildlife habitats and forests. This certification is highly recognized and regarded by the Rainforest Alliance and the World Wildlife Fund.
2.) Sustainable Forestry Initiative or SFI certification: this initiative is a chain-of-custody certification that protects the best interest of sustaining the forests and wildlife, while also maintaining the best interest of the forest land-owners and loggers.
3.) Green energy or Green-E: The paper is manufactured utilizing a number of sustainable energy methods (e.g. wind-power).
4.) Bleaching: “ECF” or “Elemental Chlorine Free Bleaching” uses a chlorine compound, most often chlorine dioxide that significantly reduces dioxins but does not eliminate them. ECF bleaching is considered middle ground for environmental bleaching. “PCF” or “Process Chlorine Free Bleaching” uses totally chlorine free processing and includes recycled content and is considered the “greenest” method of bleaching.
5.) Paper recycled content: The recycled content refers to the percentage of the paper that contains recycled fibers. Additionally, many paper stocks contain post-consumer waste (PCW). This waste is paper that is recycled by consumers. So, for example, if a paper contains 60% recycled content and 40% PCW, this means that 20% of the paper is pre-consumer waste (any paper that does not reach the consumer) and 40% is post-consumer waste.
6.) Soy-based inks: These inks are manufactured with a soy-base and not a petroleum base. The benefit of soy-based inks is that their VOC, or volatile organic compound, content is very low. VOC content has become a very important discussion point, as the concern is that something that biodegrades releases VOCs into our soils and waterways and can potentially poison our generations to come.

If your printing rep’s concern aligns with environmental sustainability, they will be able to provide economically feasible solutions. Many of these initiatives may be accomplished with out additional cost to the job! So align yourself with a rep who can provide you with these types of solutions (**ahem…over here…cough, cough…yes, this is an expertise of mine**)

Catalog and Direct-Mail Challenges in 2008: “Do Not Mail Legislation – Fight or Flight”

It’s August; it’s time to begin preparing for the holiday season. If you’re a cataloger or direct-mailer, you have the same concerns this year as we do. In the next few blogs, I plan to address these concerns facing you and how to turn them into successful profit-centers for your business.

Catalog and Direct-Mail Challenges in 2008: “Do Not Mail Legislation – Fight or Flight”

Every time I pick up a new printing or marketing magazine, there’s at least a small mention of “Do Not Mail Legislation” which essentially will establish a “Do Not Mail” registry that consumers can add their mailing information into. And as it is believed, this proposed legislation will produce another major hindrance to the success of direct marketers.

Direct marketers are worried that prospective customer volumes will drop-off. Likewise, list-service providers, printers, and mailers believe that their business will be directly correlated to this. It’s time for a “Plan B”.

Plan B should begin by re-evaluating your marketing strategy. For many up to this point, you’ve been utilizing the “spray-and-pray” marketing strategy (meaning, “send a ton of direct mail/catalogs out and hope that you can turn a 3% response rate”). Now while direct-mail continues to be the most effective catalyst to the sales cycle, let’s take a more tactical approach to attracting high-quality prospective-customers.

Consider spending more of your marketing budget on your best prospective customers. Most likely, your best prospective customers are divided into two major groups:
1.) Those customers that currently purchase your products, and
2.) Those customers who don’t currently purchase from you, but demographically are the most likely to.
Focus on producing higher quality print and mail communications for these customers.

Some ideas to begin your thought process:
1.) Don’t send your customers “throw-aways” send them “coffe-table mail”. Meaning, mail your customers pieces that aren’t perceived as marketing tools…or “junk mail”; mail them print pieces that will have a long-shelf life, and a high-quality perception! Be creative; have you ever received a direct-mailer that you showed to co-workers, friends, and family. I have! FYI – The level of quality in a piece of print sub-consciously triggers a perception about the quality of the products/services that are being marketed and the company being represented.
2.) Drive your customers with print promotions. Coupons, freebies, rewards-programs, rebates…regardless of its name, promotions can drive your best customers into your “customer community”. This produces long-term customer loyalty.
3.) Harness the available technology and your data. Have you considered using the data you have on your customers and available data on prospective customers to its fullest extent? Personalized communications and variable data (whether it is as simple as ink-jetting codes or as complex as personalized 4-color graphics and messages) are a way to drive response rates. You have mere seconds to capture a new customer’s attention, so you’d better hit them with something good while you’ve got their eye.
4.) Shock the end recipients’ expectations by changing the look and feel of your piece. Got the “5 X 7 direct-mailer blues”? How about the “8-1/2 X 10-7/8 catalog blues”? Change the size, throw in some die-cutting, use a new stock or coating, try some varnishing techniques…whatever floats your boat! Try something…ANYTHING…new to increase the mere seconds you have capture the recipient’s attention.

I will speak to this further in a future blog called “Overstuffed Mailboxes? Take the JUNK Out of Junk-Mail!” It’s really up to you to begin changing your thought-process with the evolving times. Focus more upon your highest quality customers and your ROI will benefit.