Monday, August 25, 2008

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.

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