Next Year’s Hit
IT’S NOT ALL BAD NEWS.
Yes, mailers will be hit with a postage increase next year. But they may be able to save money by drop shipping and commingling.
That’s one way of looking at the latest rate blast from the U.S. Postal Service.
On May 3, the USPS proposed new rates to take effect in 2007 that would force standard mailers to fork over some 9% more for postage and raise specific categories higher still.
For example, the 8-ounce standard mail parcel rate would go up by 64% to $1.30. Mailers could reduce the impact by taking advantage of greater drop-ship discounts or redesigning the parcel as a flat and then drop shipping it.
And 5-ounce automated catalog rates would increase from 32.1 cents per ounce to nearly 34 cents. The price for a first class stamp would rise by 3 cents.
The USPS proposal also created an adjustable rate system by giving mailers the opportunity to obtain lower rates as they find ways to configure their mail into shapes that cut processing costs for the postal service.
Despite the discounts, mailers and their trade groups are unhappy.
